The United States has witnessed a remarkable surge in interest and demand for electric vehicles (EVs) in recent years. However, despite the growing enthusiasm, a surprising number of EVs are reportedly languishing unsold on dealership lots across the nation.
According to a recent report from Cox Automotive, prominent automakers such as General Motors, Ford, Hyundai, and Toyota are currently grappling with an inventory of unsold EVs that exceeds 90 days’ worth of supply. In total, dealerships across the US are holding over 92,000 brand-new EVs, a staggering figure that is more than three times the number observed just a year ago. This abundance of inventory suggests a potential temporary stagnation in the country’s EV market growth.
As of June 30, Reuters disclosed that General Motors had approximately 50 days’ worth of Cadillac Lyriqs available at dealerships. Moreover, GM confirmed that more than 80% of the Lyriqs and GMC Hummer EVs it manufactured are still en route to dealerships. Cox Automotive’s data also indicates that Ford possesses 86 days’ worth of F-150 Lightnings and an inventory of Mustang Mach-Es that would last for 113 days. However, Ford has countered these estimates, with Erich Merkle, Head of Ford’s U.S. Sales Analysis, claiming that the F-150 Lightning inventory stands at 58 days, including vehicles in transit, while Mustang Mach-E inventory sits at a slightly higher 83 days’ supply.
Merkle clarified, “By no means are those inventories high.” What is certain is that Ford produced 46,238 Mustang Mach-Es in the first half of the year and managed to sell 14,040.
Volkswagen (VW) has acknowledged a recent “softening” in EV sales in the US. Cox’s data reveals that VW is currently burdened with an inventory of ID.4s that would last for 131 days. The German automaker attributed this situation to the scarcity of all-wheel drive versions of its popular electric SUV, alongside customer confusion surrounding the eligibility of EV models for tax credits.
Investment banker Vitaly Golomb commented, “There’s a natural speed of market growth here that many are fighting against, and there’s a lot of confusion in the market with too many brands. The strong will survive here, and the rest will struggle.”