Discounts do not boost sales of electric vehicles in the US

In the US, enthusiasm for electric cars has not yet fully taken off, although many dealers across the country are offering large discounts. In China, however, sales are rising rapidly.

The decline in demand for electric vehicles in the United States is due to major investments by international automakers in purchasing electric vehicle fleets in recent years.

In 2023, electric vehicle sales increased by nearly 50 percent, according to data from Motor Intelligence, a provider of vehicle sales data in the U.S. In the first six months of this year, growth increased by only 6.8 percent due to declining consumer interest.

Richard, who declined to give his last name, is a buyer at Major World, a large auto dealership in Long Island City, Queens, New York, that sells new and used cars, electric vehicles, trucks and SUVs.

He told China Daily: “We have bought a lot of electric vehicles to target taxi and limousine drivers, but most people do not come here looking for electric vehicles, but prefer other non-electric vehicles.”

Dealer prices for electric vehicles range from $14,000 to $17,000 for a small Chevrolet Bolt model to $19,000 to $22,000 for larger 2022 and 2023 models. List prices for newer electric vehicles range from $40,000 to $50,000.

Richard believes consumers will respond to cheaper electric vehicles if they have longer battery life.

“If you don’t have the battery that gives you the range you need, customers will be hesitant to buy the product.”

Consumer interest in purchasing electric and hybrid vehicles is quite different in China. There, sales figures exceeded those of vehicles with combustion engines for the first time last month.

About 51 percent of all vehicle sales in July were electric vehicles and hybrids, according to data from the China Passenger Car Association.

At least 878,000 electric and hybrid vehicles were sold in July, an increase of 37 percent over the same period last year. Sales of conventional vehicles fell by 26 percent to 840,000, the association said.

China exported 376,000 cars worldwide in July, 20 percent more than in 2023, according to the auto association.

In May, the administration of US President Joe Biden imposed 100 percent tariffs on electric cars and batteries made in China. The tariffs effectively resulted in an import ban on Chinese cars.

Political considerations

While the White House is committed to clean energy, there are also political considerations to import cheaper vehicles.

In the US, in addition to the cost of electric vehicles, concerns about batteries and the tariffs that went into effect on August 1, there is also a shortage of charging stations.

According to the Pew Research Center, there were about 61,000 such stations in the United States in February.

With 43,780 charging stations, California has the highest number of individual public charging stations for the 1.2 million electric vehicles registered in the state.

Nationwide, there are even fewer charging stations in rural areas. The Inflation Reduction Act of 2022 provided tax breaks to encourage the installation of electric vehicle charging stations outside urban areas.

In contrast, China has invested heavily in electric car infrastructure. According to the National Energy Administration, the total number of charging stations in China reached 10.24 million units by the end of June.

Due to declining demand for battery-powered cars and trucks, U.S. auto dealers are overstocked as they prepare to launch new 2025 models this fall.

In June, dealers had an average 125 days' supply of electric vehicles, compared to about 60 days normally, according to figures from Cox Automotive. Dealers are also selling many electric vehicles at a loss and offering financing deals.

Agencies have contributed to this story.