Shulou(Shulou.com)11/24 Report--

On the morning of July 12, Beijing time, it is reported that the US electric vehicle market is growing, but not fast enough to digest all the electric vehicle inventory in time, according to analysts' reports and industry data. nor is it enough to make Tesla stop cutting prices again.

Rising inventories and price cuts may only represent a short-term pause in the growth of the electric car market, but they may also send a signal that even with federal and state subsidies, but if you want to increase the share of electric vehicle sales in the US car market to more than the current 7 per cent level, it is still more expensive and more difficult than expected.

Tuyuan Pixabay North American carmaker is investing billions of dollars in the electric vehicle industry, but that will also depend on the performance of the electric vehicle market in the coming quarters. If the supply of electric cars continues to exceed demand, carmakers will have to choose between slashing prices and profit margins and slowing investment in production lines.

According to market research firm AutoForecast Solutions, more than 90 new electric vehicle models are expected to hit the market in the United States by 2026. Analysts say many companies will struggle to achieve profitable sales.

Dealers of traditional car brands such as General Motors, Ford, Hyundai and Toyota have had an inventory elimination cycle of more than 90 days in their stores at current sales rates, according to Cox Automotive.

U.S. dealers have more than 92000 electric vehicles in stock, more than triple what they were a year ago, according to Cox. Overall, new car inventories are 74% higher than a year ago.

There is a large backlog of electric cars in stock. GM's Cadillac Lyriqs inventory elimination cycle reached 50 days as of June 30, below the current industry average of 52 days, according to Cox.

GM said in a statement that its inventory of electric vehicles is "very low and there is a lot of demand". More than 80 per cent of Cadillac Lyriqs and GMC Hummer electric cars are still on their way to dealerships, the company said.

The bigger challenge for GM is how to accelerate the production and delivery of the next generation of electric vehicles based on the Ultium platform. Of the 36024 electric vehicles GM delivered in the United States in the first half of this year, only 2365 were based on the Ultium platform. The company aims to produce a total of 100000 electric vehicles in North America in the second half of this year.

Data from Cox also show that the removal cycles of Ford's Fmur150 Lightning and Mustang Mach-E models are 86 and 113 days, respectively.

In response, Ford said Cox's data exaggerated the inventory of the two models. Erich Erich Merkle, head of US sales analysis at Ford, said that the inventory destocking cycle of the Mustang Mach-E is 83 days and that more than half of the cars produced are in the process of being shipped to dealers.

Ford estimates that the removal period of the Fmur150 lightning, including vehicles in transit, is 58 days. However, Ford's Dearborn, Michigan plant, which assembles electric pickups, closed this month, citing equipment updates.

"inventory levels are by no means very high," Ms Merkel said. " At the same time, Ford is further boosting the lightning capacity of the Mustang Mach-E and Fmuri 150 to far exceed the current sales rate.

Ford produced 46238 Mustang Mach-E vehicles in the first half of this year, with sales of 14040, according to data on Ford's investor relations website. Ford cut the price of the Mustang Mach-E in May.

In addition, according to Cox data, Volkswagen ID.4 Electric SUV dealer inventory removal period of 131 days.

Sales of electric vehicles in the United States have slowed recently as supply chain bottlenecks have eased and production has increased, Volkswagen's US sales department said in a statement.

However, Volkswagen still sees strong demand for the ID.4, and the supply of "what the market wants" four-wheel-drive models is still insufficient. Volkswagen also mentioned that "customer indecision has had an impact, which is mainly related to which electric vehicles are eligible for a tax credit."

Currently, ID.4 made in the United States is eligible for a $7500 excise tax credit.

Industry officials and analysts warn that the US electric car market is still in its formative stage, with many consumers still assessing whether electric vehicles meet their needs, while major carmakers are still ramping up production.

"the market has its own pace of development, but a lot of people are breaking the law," says Vitaly Golomb, an investment banker who specializes in electric cars. "at the same time, there are too many brands on the market, which is very confusing. So the strong will survive and other companies will struggle."

Tesla is taking advantage of the production cost of electric vehicles to stimulate demand by cutting prices. At the same time, most of the electric models of traditional carmakers are losing money.

Tesla, Rivian and other "New Power" electric car companies do not have a dealer system or provide inventory reports. Last week, Tesla announced that the global market delivery volume was better than expected. However, the company has been offering discounts and incentives to boost demand, such as those linked to old and new recommendations launched late last week.

Tesla's price cuts and competitors' follow-up brought the average selling price of electric vehicles in the US to $53438 in the second quarter of this year, down 19.5 per cent from $66390 in June 2022, according to Cox.

Us carmakers are facing tough competition and pressure from US regulators as they try to boost sales of electric vehicles and address the imbalance between supply and demand.

The emissions rules proposed by the US government in effect require US automakers to shift their sales of 2max 3s to electric vehicles by 2032. However, GM and the industry association, which represents most US automakers, say the idea is unrealistic.

"the price cut does show that we are in some kind of balance between supply and demand and price," said Mark Wakefield, co-head of car business at consulting firm iRuiplatinum. "so when expected sales don't materialize, they will cut prices. Tesla especially has room to do that."

He also said it was too early to declare that demand for electric vehicles in the US market had reached a plateau. "We think there will be discontinuous growth, but the growth will continue."

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