Dealers are facing a challenge; the supply of electric vehicles (EVs) is not on par with current consumer demand. Government regulations along with higher fuel prices might be pushing more customers to consider a switch, but the reality is that dealers need to make sales right now, and excess EV inventory has been sitting on lot causing turn rates to plummet.
Inventory levels During the Global Pandemic
The auto industry became a living laboratory for studying supply and demand and its impact on dealership profitability. As factories shut down, supply chains were disrupted, and overall vehicle inventory dropped from pre-COVID levels of 3-3.5 million to approximately 835,000. As a result, demand increased causing prices and profitability to rise.
Vehicle Inventory levels Now: Fall 2023
Now, inventory has leveled out, causing a decrease in demand. EV manufacturers, in a bid to keep up with Tesla’s dominant market position, have introduced almost 50 new EV models in 2023 alone. But this influx of new models has had an unintended consequence: dealership lots are choked with excess EV inventory and turn rates for EVs have plummeted. Dealers need to find a solution to moving excess EV inventory, and that solution is not slashing prices.
ZeroSum has released a report that examines the current EV market, the consequences of EV saturation, and current tactics and advice for automotive dealers on how to navigate the situation to move their excess EVs.
ZeroSum is an industry leader in software, marketing, and data. Powered by its SaaS platform, MarketAI, ZeroSum is simplifying and modernizing automotive marketing by leveraging artificial intelligence, data, and scaling ability to acquire new customers. ZeroSum's MarketAI is the first and only platform for dealers that matches consumer demand with live inventory in real-time. For more information, visit www.zerosum.ai.