The Biden administration's ambitious plan to convert two-thirds of new automobiles to electric powertrains by 2032 has been formally shelved, signaling a dramatic change in the automotive industry. The aim has been significantly reduced because, quite simply, the electric vehicle industry isn't growing at the predicted rate. Actually, it's not moving forward at all, even with steep discounts and plenty of incentives. Let's examine the six main factors that are causing the electric vehicle sales slump.
Reason Number 6. Market Oversaturation.
The electric vehicle market has experienced a seismic shift, where the once-celebrated demand seems to have plateaued. Dealerships find themselves grappling with an oversupply conundrum, as their showrooms become virtual parking lots for unsold electric vehicles. With inventory levels exceeding the 100-day mark, their reluctance to push sales is an understandable business strategy in the face of such a supply glut. Compared to their peers in the industry, this surplus stands as a testament to their production prowess.
But what lies at the root of this paradoxical situation? In the aftermath of last year's supply chain crisis resolution, automakers seized the opportunity to ramp up production. Fueled by the allure of year-over-year growth rates soaring above 90%, the supply surged by a staggering 500%. However, this meteoric rise encountered a speed bump, as the growth rate decelerated to a relatively modest 50% by the end of the previous year, a far cry from the unprecedented 90% or greater growth witnessed in preceding years.
22 авг 2024
