Electrical automobile gross sales are rising year-over-year, however month-to-month and quarterly developments typically ebb and movement, inflicting uncertainty about what’s really taking place. A brand new report from automobile shopping for and analysis agency iSeeCars emphasizes these fluctuating gross sales patterns, particularly with regard to used EVs.
iSeeCars claims to have analyzed over 2.3 million new and 1- to 5-year-old used vehicles to know the market, and it discovered a “substantial weak spot” in demand for EVs in comparison with hybrids and gasoline automobiles. Probably the most substantial of those findings: used EV costs had been down 33.7 p.c in October 2023, in comparison with October 2022. Final October, the common used EV worth was $52,821. This October, it was $34,994.
To place that in context, general used automobile costs had been down by 5.1 p.c final month, whereas common used hybrid automobile costs had been down by 9.6 p.c, considerably decrease than the 33.7 p.c worth drop used EVs are going through. And EVs had been available on the market practically 1.5 occasions longer in comparison with final 12 months. On common, a used EV took 52.4 days to promote in October 2023, whereas the common used automobile took 49.2 days. This marks a big change from a 12 months in the past when used EVs had been available on the market for a mean of 37.5 days, indicating a substantial decline in demand.
So much has transpired between then and now. Producers, beginning with Tesla, launched into a price-cutting spree. Even then, EV costs are nonetheless greater than comparable gasoline vehicles. This disparity, coupled with lingering considerations over the reliability of charging infrastructure, appears to have left clients considerably cautious. “The whole lot from financial considerations to rising competitors amongst electrical automobiles is contributing to their [used EVs] downward development,” mentioned Karl Brauer, iSeeCars govt analyst.
However there’s most likely no want for the alarm bells to ring. Used vehicles with the most important worth drops are previous fashions, launched years in the past. The highest 5 used vehicles with the most important worth drops are the Nissan Leaf, Tesla Mannequin 3, Chevrolet Bolt EV, Tesla Mannequin X, and Mannequin S. “It’s frequent for previous fashions to drop in worth when the market contracts,” mentioned Brauer. “Many of the fashions on this checklist had been launched a number of years in the past and want a redesign to stay aggressive.”
Not solely are redesigns underway, however a handful of recent and apparently budget-friendly EVs are additionally within the pipeline. The facelifted Mannequin 3 Highland has already launched in China and Europe, and its U.S. launch is predicted quickly. The Ultium-platform-based Chevrolet Bolt EV successor can also be on its means—some studies predict manufacturing to start in 2025. You then even have fashions just like the Volvo EX30, and Chevrolet Equinox EV amongst a number of others, which may doubtlessly be promising mass-market vehicles.
Different key particulars from the research? Used EVs taking the longest to promote are non-Tesla fashions, together with the Kia EV6, Ford F-150 Lightning, Polestar 2, and Volkswagen ID.4 amongst others. That mentioned, the Rivian R1T was the fastest-selling used EV in October 2023—it remained available on the market for 35.5 days. The Chevrolet Bolt EV and EUV, and the Tesla Mannequin 3 and Mannequin Y had been additionally among the many fastest-selling used EVs, as highlighted in one other report final month.