EV Searches on Uptick as Sales Rise Modestly
Anyone looking to confirm whether or not the general public’s interest in electric vehicles is on the rise need only turn to the internet for confirmation.
Based on a new report from online car sales broker CarGurus.com, searches for new EVs skyrocketed by 382.4% from the first quarter of 2022 to the same period in 2023. For used EVs in the same timeframe, searches were up 74.3%. The stats are based on individual vehicle searches for EV models on the CarGurus platform.
The website thinks the reason for the meteoric rise is equal parts eco-mindfulness and looking for savings at the gas pump.
“The combination between decreasing prices and a growing number of options available on the market is significantly bolstering consumer interest in EVs, as seen by traffic on the CarGurus platform,” said Kevin Roberts, director of Industry Analytics at CarGurus.
“Although recent updates to the federal EV tax credit have limited vehicle eligibility, the wider assortment of vehicle types and price points now available to consumers is likely to lead to further increased interest.”
EV sales rising quickly, but not that quickly
As TheDetroitBureau.com previously reported, during the first quarter of 2023, EVs accounted for 7% of new vehicle sales. According to Cox Automotive analysts, the popularity of electric vehicles in the U.S. will result in new EV sales eclipsing the 1-million-unit mark in 2023. EV sales accounted for 5.8% of all vehicle sales in 2022, or about 807,000 vehicles — a new record.
Meanwhile, retail used electric vehicle sales, which are EVs sold through a licensed dealership, increased significantly in Q1, according to Cox, up 32% year over year, to 42,753 units. (Sales volume estimates do not include private-party, consumer-to-consumer sales). Used EV sales in Q1 2023 represent twice the volume sold in Q1 2021.
So the rise in sales is real, just not as brisk as the number of those looking at EVs, perhaps for the first time.
“An increase in searches doesn’t definitively lead to an increase in sales,” Roberts told TheDetroitBureau.com. “What it does show is that interest in EVs is rising as more EVs become available in the market, particularly in body types that consumers desire, such as SUVs, CUVs and pickups. As we see more new EVs released, and more used EVs become available, we expect EV interest to continue to grow, particularly for models that qualify for the Inflation Reduction Acts credits.”
Digging into the data
CarGurus released their search data from March 31, 2022 through March 31, 2023. Based on consumer searches, the top five most-viewed new EVs on the CarGurus site include the Volkswagen ID.4, Hyundai Ioniq 5, Chevrolet Bolt EUV, Ford Mustang Mach-E and the Kia EV6. Other popular searches included EVs from Mercedes-Benz, the BMW i4, and the new Nissan Ariya.
The top five used market search statistics were dominated by Tesla. The Model 3 was the most-searched used EV, followed by the Model S, the Nissan Leaf, the Tesla Model Y and the Model X.
Other popular searches included the Ford Mustang Mach-E, Chevrolet Bolt EV, Audi e-tron, Porsche Taycan and the Volkswagen ID.4.
There’s a simple reason why Tesla dominates the used searches, but not the new. “New Tesla sales are direct-to-consumer so they won’t appear in CarGurus data which looks at dealer inventory,” Roberts explains. “There’s a similar situation with Rivian, Lucid, Fisker and so on.”
The departure of the Bolt
Chevrolet announced this week that the brand’s affordable Bolt EV and Bolt EUV will be going out of production this year. TheDetroitBureau.com has seen the low-cost replacements under development, but they’re not announced yet, making the end of Bolt production more momentous. As the most affordable EVs for sale today, the announcement may create urgency for buyers.
“With a number of Bolt and Bolt EUV models already in the US fleet, used volume should remain solid, although residual values might drop with no new models being produced,” Roberts predicts. “This may offer welcome news to consumers seeking more affordable used EV options.”
CarGurus Deputy Editor Matt Smith expanded on the topic, saying, “While shoppers in the market for a brand-new EV may be disappointed to see the affordably priced Bolt and Bolt EUV leaving the market, these vehicles have been on sale long enough that we expect plenty to be available on the used car market. Better yet, the new federal EV tax credit rules now offer incentives for used cars, whereas in the past, shoppers only qualified if they were making a new vehicle purchase.”
“Moreover, while these two models are going away, Chevy is committed to bringing new EV models to market, including the Blazer EV, Equinox EV, and Silverado EV,” Smith said. “We expect these to be priced a bit higher than the Bolts, but they will also incorporate more sophisticated EV platforms and more advanced battery technology.”
The road ahead for EVs
With rising adoption rates and increased model range available, the future looks more electrified all the time. The quality and value in EVs is also evolving rapidly, with EVs and PHEVs now winning head-to-head competitions against their gas-fueled cousins.
“EVs are going to see continued interest over the next year as more options become available, particularly as more new EVs priced in the $30,000 — $40,000 range come to market,” Roberts said. “What could hold back EV adoption is the lack of infrastructure currently available, particularly around charging. Until we see some more progress there, EVs might struggle to take over market share.”
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