EV Sales Forecast Slashed as ‘Overriding Concern’ Bothers Industry
The Society of Motor Manufacturers and Traders (SMMT) in the United Kingdom has slashed its forecast for electric-vehicle sales as the market continues to deal with low demand. The trade body noted that more action has to be taken to encourage electric-vehicle adoption among consumers. This statement comes at a time when the burgeoning electric vehicle industry is plagued with waning demand and dwindling sales as high costs discourage drivers from making the transition to electric cars.
Dwindling electric-vehicle demand is likely the primary reason behind the SMMT lowering its new-vehicle registration forecast for 2024 from 1,984,000 units to 1,968,000 units. Premium electric-vehicle prices coupled with high interest rates have made EV ownership costly, especially as many countries across the world continue to grapple with a cost of living crisis.
As a result, both electric vehicle startups and established automakers are finding it exceedingly difficult to sell their EVs. Many have taken to slashing electric-vehicle prices to boost sales but at the cost of profitability, a tactic that’s ultimately unsustainable. With several automakers investing significantly in electrification over the past few years, the recent slump in EV sales has forced these companies to go back to the drawing board and scale back their plans.
Electric vehicle sales in the United States and other major markets are expected to drop from previous levels if demand doesn’t pick up. According to the SMMT, battery electric vehicles (BEVs) will have an 18.5% market share this year, down from the trade body’s prior estimate of 20%. SMMT chief executive Mike Hawes explains that even though manufacturers offered “generous discounts” throughout the year, falling demand for EVs among private buyers remained an overriding concern for players in the electric-vehicle segment.
Even though EV ownership is at its highest-ever level, Hawes said electric-vehicle adoption has to accelerate even further to ensure the UK can meet its climate-change goals and auto manufacturers can hit their electrification targets. This will require providing consumers with more support through incentives as well as the deployment of charging infrastructure, Hawes added.
Government-sponsored subsidies and incentives have been instrumental in facilitating electric vehicle purchases over the past several years and will most likely play a major role in the EV industry until electric cars become affordable. Investments in EV charging infrastructure will be just as critical to help the U.S. and other countries develop public-charging networks capable of supporting millions, if not tens of millions, of battery electric cars.
Developing a robust network of public charging stations will make charging significantly more accessible and help to alleviate range anxiety, currently one of the key barriers to EV adoption alongside high prices.
It is during times like these that startups such as Mullen Automotive Inc. (NASDAQ: MULN) will have to prove their mettle by coming up with strategies to lure more customers in the major EV markets and gain an edge over their competition. When interest rates start dropping and buyer sentiment improves, the resilient companies that weathered this bad patch will cement their places in the industry.
NOTE TO INVESTORS: The latest news and updates relating to Mullen Automotive Inc. (NASDAQ: MULN) are available in the company’s newsroom at https://ibn.fm/MULN
Please see full terms of use and disclaimers on the Green Car Stocks website applicable to all content provided by GCS, wherever published or re-published: https://www.GreenCarStocks.com/Disclaimer
The Society of Motor Manufacturers and Traders (SMMT) in the United Kingdom has slashed its forecast for electric-vehicle sales as the market continues to deal with low demand. The trade body noted that more action has to be taken to encourage electric-vehicle adoption among consumers. This statement comes at a time when the burgeoning electric vehicle industry is plagued with waning demand and dwindling sales as high costs discourage drivers from making the transition to electric cars.
Dwindling electric-vehicle demand is likely the primary reason behind the SMMT lowering its new-vehicle registration forecast for 2024 from 1,984,000 units to 1,968,000 units. Premium electric-vehicle prices coupled with high interest rates have made EV ownership costly, especially as many countries across the world continue to grapple with a cost of living crisis.
As a result, both electric vehicle startups and established automakers are finding it exceedingly difficult to sell their EVs. Many have taken to slashing electric-vehicle prices to boost sales but at the cost of profitability, a tactic that’s ultimately unsustainable. With several automakers investing significantly in electrification over the past few years, the recent slump in EV sales has forced these companies to go back to the drawing board and scale back their plans.
Electric vehicle sales in the United States and other major markets are expected to drop from previous levels if demand doesn’t pick up. According to the SMMT, battery electric vehicles (BEVs) will have an 18.5% market share this year, down from the trade body’s prior estimate of 20%. SMMT chief executive Mike Hawes explains that even though manufacturers offered “generous discounts” throughout the year, falling demand for EVs among private buyers remained an overriding concern for players in the electric-vehicle segment.
Even though EV ownership is at its highest-ever level, Hawes said electric-vehicle adoption has to accelerate even further to ensure the UK can meet its climate-change goals and auto manufacturers can hit their electrification targets. This will require providing consumers with more support through incentives as well as the deployment of charging infrastructure, Hawes added.
Government-sponsored subsidies and incentives have been instrumental in facilitating electric vehicle purchases over the past several years and will most likely play a major role in the EV industry until electric cars become affordable. Investments in EV charging infrastructure will be just as critical to help the U.S. and other countries develop public-charging networks capable of supporting millions, if not tens of millions, of battery electric cars.
Developing a robust network of public charging stations will make charging significantly more accessible and help to alleviate range anxiety, currently one of the key barriers to EV adoption alongside high prices.
It is during times like these that startups such as Mullen Automotive Inc. (NASDAQ: MULN) will have to prove their mettle by coming up with strategies to lure more customers in the major EV markets and gain an edge over their competition. When interest rates start dropping and buyer sentiment improves, the resilient companies that weathered this bad patch will cement their places in the industry.
NOTE TO INVESTORS: The latest news and updates relating to Mullen Automotive Inc. (NASDAQ: MULN) are available in the company’s newsroom at https://ibn.fm/MULN
Please see full terms of use and disclaimers on the Green Car Stocks website applicable to all content provided by GCS, wherever published or re-published: https://www.GreenCarStocks.com/Disclaimer
