The ambitious electric vehicle (EV) mandate set by President Joe Biden, aiming for two-thirds of new car sales to be electric by 2032, is facing skepticism from a coalition of 3,700 American auto dealerships. These dealers, representing all major car brands in the U.S., have collectively expressed their concerns to the President, indicating that the current market dynamics do not support such a rapid transition to electric vehicles.
The dealerships are at the forefront of the automotive market and are witnessing firsthand the consumer response to EVs. Their experiences have led them to a crucial observation: despite a significant influx of Battery Electric Vehicles (BEVs) at dealerships, consumer demand is lagging. This situation has resulted in an accumulation of unsold electric cars, persisting even after applying sales strategies like price reductions, manufacturer incentives, and government subsidies.
In their letter to President Biden, the dealerships outlined several key reasons for the consumer reluctance toward electric vehicles. A primary issue is the high cost of EVs, which poses a significant barrier to many potential buyers. Additionally, inadequate infrastructure for charging, both in terms of home setups and public stations, adds to consumer hesitancy. Performance issues, such as reduced driving range in extreme weather conditions and significant range loss when towing, further discourage potential EV buyers.
The dealerships also pointed out broader challenges that need to be addressed before a successful transition to electric vehicles can occur. These challenges include developing reliable charging networks, ensuring the stability of the electric grid, and sourcing materials for EV manufacturing. The dealerships argue for a more gradual approach to the transition, emphasizing the need for time to resolve these systemic issues.
Mickey Anderson, CEO of Baxter Auto Group, criticized the government’s forceful approach in dictating market trends, suggesting that it disrupts natural market dynamics and consumer choice.
The dealerships’ message to President Biden underscores the importance of a realistic and consumer-focused approach to the adoption of electric vehicles. While there is a market segment interested in EVs, a significant portion of consumers are not ready to switch from traditional combustion engine vehicles. The coalition emphasizes the need for policies that respect consumer choice and the complexities of transitioning to a new form of transportation.
In essence, the coalition of auto dealerships is highlighting the gap between the government’s electric vehicle goals and the current market reality. They advocate for a nuanced approach that considers economic, infrastructural, and practical factors in the transition to electric vehicles.
Comments are closed.