By Electric vehicle sales are climbing at a brisk pace in the United States, up 11% in the third quarter according to Kelley Blue Book. Yet, American automakers and drivers are approaching the electric shift with a sense of caution. While global sales soar—thanks largely to China’s rapid adoption—U.S. manufacturers are reevaluating their strategies, scaling back production targets, and shifting focus toward hybrid models.
Automakers Adjust Expectations Amid Overstock
A few years back, the U.S. auto industry set ambitious goals for electric vehicle production, anticipating a surge in consumer demand. Jessica Caldwell, head of insights at Edmunds, observes that the expected enthusiasm hasn’t fully materialized. “Automakers were a bit overenthusiastic about them,” she notes.
Dealerships are now grappling with an oversupply of EVs. Stephanie Valdez Streaty from Cox Automotive points out that this surplus has led to increased incentives and discounts to stimulate sales.
- Government tax credits are making EVs more affordable.
- Dealerships are offering steeper discounts on electric models compared to gas-powered cars.
- A wider variety of electric options are now available on lots.
Shoppers can find everything from full-sized SUVs like the Kia EV9 and Rivian models to compact vehicles like the Ford Mustang Mach-E and the Honda Prologue.
Limited-Time Deals for Consumers
These attractive deals and expanded inventories might not last indefinitely. Caldwell warns that as automakers scale back production, the current abundance of choices could diminish. “If we have this conversation in a year or two years, that may not be the case because automakers have scaled back production,” she says.
While U.S. manufacturers are taking a more conservative approach, international competitors are charging ahead. China’s push to dominate the market is bolstered by generous government subsidies, and Europe is making strides to catch up.
Consumer Hesitation Despite Advancements
Even with improvements in EV infrastructure and extended vehicle ranges, U.S. consumers remain hesitant. Stephanie Brinley of S&P Global Mobility highlights the challenge of convincing practical-minded buyers to make the leap. “You really have to get these people that are kind of interested but not sure and super practical to make a leap,” she explains.
Anxiety over charging availability and the promise that “it’s gonna be better in a little bit” aren’t enough to sway many drivers. This lingering hesitation keeps a significant number of consumers in their gas-powered cars.