Electric vehicles, despite sales expansion and new models, have yet to become mainstream, according to a panel discussion on Tuesday.
“EVs are mostly supercars at this point,” Jake Fisher, senior director of automotive testing at Consumer Reports, said during an Automotive Press Association webinar. “EVs have crawled upstream.”
Typically, with vehicles generally, innovations are introduced with high-priced models. Such innovations then work their way down to more affordable vehicles.
With EVs, supplies are tight.
“I don’t think our production capacity for EVs is more than we’re making,” said Stephanie Brinley, associate director of S&P Global Mobility. “We need to fill the lower price points.”
“We have not crossed to the mainstream,” she added. “We have not crossed beyond early adopters.”
According to a list compiled by the Inside EVs website, U.S. prices of models range from about $20,000 to well above $100,000.
Automakers are ramping up EV production, investing in battery technology and new models. Traditional companies are chasing Tesla Inc., which established an EV foothold.
For now, the traditional automakers are relying on profits from gasoline-powered vehicles to fund their EV efforts.
There have been bumps. Mary Barra, CEO of General Motors Co., has set a target of going all electric by 2035. However, GM has had EV battery production issues and has cited lower-than-expected consumer demand.
Barra said at a December Automotive Press Association event that GM isn’t backing down.
“We’re in the early days,” she said. “We’re still on the first lap. The customer is rational. This is really an expensive purchase for them…We’re still going to be continuing to grow.”
Also during Monday’s panel discussion:
—Brinley said she expects U.S. light vehicle sales this year to build on gains from 2023.
Such sales totaled almost 15.5 million last year, according to the National Automobile Dealers Association. That was a 12 percent gain from 2022. Brinley said 2024 sales may reach 15.9 million cars and trucks. There may be further increases in 2025 but that will depend on vehicle affordability. She said deliveries may not reach 17 million annually this decade.
—Fisher said vehicle availability has improved. During the pandemic, there were widespread shortages of computer chips, which hampered vehicle output.
That problem has eased.
“You can actually find cars at dealerships,” Fisher said.
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