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Cox Automotive* said yesterday that 1 million new EVs will be sold in the U.S. in 2023, a record and more than twice the volume sold in 2021 if the forecast holds. The industry’s sales growth has been pushed not only by Tesla’s rapid expansion, but also a flow of new EVs.
“Education for both consumers and dealers remains a critical factor in driving widespread confidence and adoption of electric vehicles,” said Kayla Reynolds, Manager of Research & Market Intelligence, Cox Automotive Mobility. “For dealers specifically, preparation is paramount, and our findings emphasize the urgency of equipping dealers with EV sales and servicing capabilities to meet the needs and demands of EV buyers.”
Reynolds’ analysis come from “The 2023 Path to EV Adoption: Consumer and Dealer Perspectives study. It also shows that there is a lack of EV readiness among US automotive dealers regarding sales and service.
Kelley Blue Book, part of Cox Automotive, says that 33 new EVs are launching in 2023. More than 50 additional new or updated EVs will be launched in 2024. Tesla, of course eliminated dealers from the cost of selling. (AutoInformed: Ford Motor New Financial Reporting – Billions in EV Losses; Ford EV Customers to Get Access to Tesla Superchargers; GM Adding Tesla Supercharger Network to Ultium Charge 360; Ford CEO says China is the Main Competitor, Not GM)
Other Cox Observations
- EV Consideration Grows Rapidly, Sales More Slowly: 51% of consumers are now considering either a new or used EV, up from 38% in 2021. While interest in EVs rapidly increases, the gap between consideration and sales remains wide. EVs will account for less than 8% of total new-vehicle sales in 2023. On the used side, EV share of the total market remains ~1%. In many parts of the country, new EV inventory levels are increasing, as products arrive more quickly than consumers buy. In June, EV days of supply, measuring US inventory levels in the U.S. – was approaching 100 days, nearly twice the industry-wide average. EV consideration is well ahead of sales.
- Affordability continues to the top obstacle for EV buyers, with 43% of intenders noting EVs are too expensive, up slightly from the level in 2021. Other barriers, however, are diminishing. In 2021, 40% of intenders cited a lack of charging stations as a top roadblock. That number is now 32%.
- Future EV Readiness Gap: There is a significant gap in readiness between consumers and dealers in terms of embracing electric vehicles. According to the survey, 53% of consumers feel EVs are the future and will largely replace gas engines over time, compared to only 31% of dealers. [This is not surprising to AutoInformed since the dealer population has a large number of Republicans, the party that says Global Warming is a hoax, and has significant funding and dark money from the fossil fuel industry. Looming here is another elephant that is direct selling to consumers, which decreases costs.]
- Nearly half (45%) of dealers surveyed feel that EVs still need to prove themselves in the marketplace: While consumer adoption of EVs is expected to soar as more models hit the market, dealerships are not prepared regarding sales and service capabilities, raising concerns about the overall customer experience and satisfaction. According to the survey, 82% of dealers are required by their OEM to make an EV investment. This should help dealers build the infrastructure needed to support EV growth.
- OEM Support Needed: Despite concerns, dealers see electric vehicles as important to the growth of their dealerships, both in selling (55%) and servicing (57%) EVs. However, the study reveals (claims?) that dealerships need more support and guidance from automakers, which they view as their preferred source of EV information. Dealers want comprehensive and up-to-date information to ensure they become the go-to resource for customers, specifically in areas of charging infrastructure and battery technology. According to the study, areas where dealers need to learn more about EVs include the battery lifecycle, battery health and overall servicing of an electric vehicle. According to the survey, this is consistent with EV owners, who also showed an interest in learning more about battery health. (This is also a classic who pays argument of Dealers versus the Automaker – AutoCrat)
- Crucial Need for Equipping Dealerships: The likelihood of an EV buyer deciding to purchase before visiting a dealership is high, current EV owners still prefer dealerships for servicing and maintenance. More than half of the dealerships surveyed are not fully prepared to handle the specific needs of EVs. Feedback collected from dealers who took the survey noted more infrastructure for DC fast chargers and more technicians dedicated to BEVs are needed. Among dealers who do not currently sell EVs, 55% are expecting to begin in the next year and 34% within the next six months, according to the study.
*About Cox Automotive
Cox Automotive says it is the world’s largest automotive services and technology provider. It gathers data based on 2.3 billion online interactions annually. Cox Automotive can help car shoppers, automakers, dealers, retailers, lenders and fleet owners. The company has 25,000+ employees on five continents and a family of brands that include: Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™ and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on Twitter, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn. (Twitter @KenAutoinformed)
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Cox Automotive Study – EV Consideration at Record High
Click for more information.
Cox Automotive* said yesterday that 1 million new EVs will be sold in the U.S. in 2023, a record and more than twice the volume sold in 2021 if the forecast holds. The industry’s sales growth has been pushed not only by Tesla’s rapid expansion, but also a flow of new EVs.
“Education for both consumers and dealers remains a critical factor in driving widespread confidence and adoption of electric vehicles,” said Kayla Reynolds, Manager of Research & Market Intelligence, Cox Automotive Mobility. “For dealers specifically, preparation is paramount, and our findings emphasize the urgency of equipping dealers with EV sales and servicing capabilities to meet the needs and demands of EV buyers.”
Reynolds’ analysis come from “The 2023 Path to EV Adoption: Consumer and Dealer Perspectives study. It also shows that there is a lack of EV readiness among US automotive dealers regarding sales and service.
Kelley Blue Book, part of Cox Automotive, says that 33 new EVs are launching in 2023. More than 50 additional new or updated EVs will be launched in 2024. Tesla, of course eliminated dealers from the cost of selling. (AutoInformed: Ford Motor New Financial Reporting – Billions in EV Losses; Ford EV Customers to Get Access to Tesla Superchargers; GM Adding Tesla Supercharger Network to Ultium Charge 360; Ford CEO says China is the Main Competitor, Not GM)
Other Cox Observations
*About Cox Automotive
Cox Automotive says it is the world’s largest automotive services and technology provider. It gathers data based on 2.3 billion online interactions annually. Cox Automotive can help car shoppers, automakers, dealers, retailers, lenders and fleet owners. The company has 25,000+ employees on five continents and a family of brands that include: Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™ and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on Twitter, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn. (Twitter @KenAutoinformed)
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.