Cox Automotive: Despite huge discounts, EV sales are still low

Tesla and Ford are even cutting down the sticker price of their EVs in addition to the discounts.

According to reports, carmakers are unable to attract customers despite offering huge discounts on their electric vehicles. This has resulted in a rise in EV inventory, pushing dealers & carmakers to reduce prices even further.

As per a study by Cox Automotive, the average discount per electric vehicle in the first quarter of 2024 was $6,000. The study says that the massive discounts are for the simple reason that customers don't want to spend a huge premium on electric vehicles. The study also mentions how some carmakers like Nissan & Mercedes-Benz are offering discounts well beyond the average. The Nissan Ariya EV is offered with a $16,000 discount - one-third of its MSRP; while the Mercedes EQS SUV is being sold at $105,000 - a discount of $20,000, compared to its MSRP.

The study also shows that brands like Tesla and Ford are even cutting down the sticker price of their EVs in addition to the discounts. With modest incentives, Tesla's Model 3 and Model Y now cost $40,547 and $43,238, respectively. Similarly, Ford's Mustang Mach-E now retails at $44,910 post average discounts.

Stephanie Valdez Streaty, Director of Industry Insights, Cox Automotive, stated, "Consumers … might want to wait. It’s a huge investment. Affordability is an issue."

Talking about the building inventory, Valdez Streaty added, "As we move into this next wave of adoption, it’s getting more challenging. That’s why inventories are building up."

Source: Automotive News