Electric Vehicles

Electric Vehicles (101)

Electric vehicles, once thought of as an industry outlier, have demonstrated their staying power, with new EV registrations growing more than 250% over the last five years. According to Experian’s Automotive Consumer Trends Report: Q2 2022 there are more than 1.7 million EVs in operation in the U.S. today (compared with more than 400,000 EVs in Q2 2018). This number is small compared to the 284 million vehicles on the road, but data shows it is growing exponentially. Additionally, new EV registrations continue to ramp up, comprising 5.7% of all new vehicle registrations in Q2 2022, up from 1.5% in Q2 2018.

In addition to the growth of new EV registrations over the past five years, the data also shows the types of EVs consumers prefer is shifting, partly due to more models being introduced. For example, SUVs comprised just 17.84% of new EV registrations in Q2 2018, with sedans making up 81.89%. However, in Q2 2022 SUVs made up 59%, followed by sedans at 35.77% and sports cars at 3.28%.

“The types of electric vehicles consumers are gravitating toward mirrors that of the larger automotive industry, with the obvious exception of pick-ups due to limited availability,” said John Howard, Experian’s director of product management for automotive.  “We can attribute part of the allure of electric vehicles to the newer variety of makes and models available.”

California still makes up the largest share of retail EV registrations at 36.6%, but there are other markets beginning to show significant growth. For example, Tucson, Arizona shows a growth rate of more than 82% year-over-year as of Q2 2022. Other markets with notable year-over-year growth rates include Orlando, Florida at 77%, and Oklahoma City, Oklahoma, at 75% growth.

A new condition report feature to showcase battery performance of electric vehicles has been launched by ADESA. Powered by Recurrent—an EV battery and range analytics company—the EV Range Score is available on the majority of used electric vehicles that transact on the U.S. market, providing buyers with more transparency and confidence when purchasing EVs.

“Electric vehicle adoption continues to accelerate, so we’re thrilled to evolve our condition reports to ensure customers have a more complete view of each vehicle,” said John Hammer, president of ADESA U.S. “The addition of Recurrent’s Range Score ensures customers have access to the most relevant vehicle condition data—including a clearer understanding of EV battery health—and can make faster and smarter buying and selling decisions.”

During the inspection process, the vehicle VIN number for an eligible EV is shared through Recurrent’s software to generate a Range Score from zero to 100. That information is displayed clearly on the ADESA.com condition report with a Range Score badge. Once the user clicks the badge, more information is shown including details on the warranty and expected battery performance in a full Recurrent Report.

“The battery represents a lot of the cost of a used EV and most of the concern that we hear from buyers—they want to know how the battery will hold up,” said Scott Case, co-founder and CEO of Recurrent. “ADESA is establishing itself as a leader in the EV market by helping sellers pass that confidence on to buyers at each stage of the used car wholesale process.”

GlobalData analyzed the Twitter activity of the top 15 automotive companies, based on the revenue generated in 2021, and found Tesla topped the list.

The analysis was performed based on the total tweets published by the companies’ official Twitter handles and a few key metrics, which include the average reactions and engagement rate during the first half (H1) of 2022.

“The revelation of the business expansion, strategies, and new models have enhanced the social media popularity of Tesla in H1 2022, especially on Twitter,” said Smitarani Tripathy, social media analyst at GlobalData. “The publication frequency of tweets by Tesla Twitter handle was only one post per day in H1 2022, while the retweet percentage was 24%, according to the GlobalData Social Media Analytics platform.”

BMW has emerged as the second most engaged company with the higher average reactions but comparatively lower engagement rate when compared to BYD, Daimler, Tesla and Toyota. The publication frequency of BMW was 170 tweets per day during H1 2022, while the retweet percentage was only 4% during the period. The company’s most engaged post is related to its campaign for #RoadtoCoachella with BMW iX, which got more than 7,000 likes and 540 RTs. 

Volvo, Nissan and Renault occupied the last three positions, in terms of average reactions and engagement rate, among the top 15 automotive companies in H1 2022.

Autel Energy made its global debut this week as the latest entrant to the efficient energy market, showcasing an ecosystem of viable and reliable electric vehicle charging solutions.

The brand revealed its comprehensive charging solutions for consumer and commercial needs during the media preview at the 2022 North American International Auto Show (NAIAS).

“As the transportation industry moves toward electrification, smart, efficient and digital solutions are the missing link,” said Autel U.S. CEO, Chloe Hung. “Autel is leveraging decades of leadership in the aftermarket space to expand into e-mobility with the debut of Autel Energy. We will use our expertise to tackle sustainability, one of the greatest challenges facing our planet.”

At NAIAS, Autel Energy revealed its end-to-end charging and energy solutions, which combine advanced hardware, software and support to offer digitally capable clean energy charging options.

“Key to the success of the widespread adoption of EVs will be putting in place critical charging infrastructure to support it,” said Autel Energy Chief Operating Officer, John Thomas.

The Detroit Auto Show, running since 1907, is in full swing this week, and EV’s are front and center this year. President Biden, a self described ‘car guy’ dropped into the festivities on Wednesday during his midterm election travel tour, as he showcases new laws to fund infrastructure building.

In his speech at the show the President announced a plan to build 500,000 new EV charging stations across 350,000 miles of U.S roadways in 35 states. The White house said $900,000 million will be spent over 5 years. The $900,000 million is part of the 1 $trillion in infrastructure spending Congress passed into law this year. The monies will be distributed via grants to states to build the electric vehicle charging stations, with the caveat, Union Workers are on the job.  

"I believe we can own the future of the automobile market. I believe we can own the future of manufacturing," President Biden said in Detroit. "American manufacturing is back. Detroit is back. America's back, and folks, we're proving it's never, ever, ever a good bet to bet against the American people."

Where to charge a EV, how long charging may take, and range anxiety have been front and center for many consumers contemplating switching from an ICE vehicle to an EV.  Tackling those issues is a big step towards car buyer confidence. 

As the President said. "The great American Road Trip is going to be fully electrified. "

The Chicago Automobile Trade Association, the area’s new-car dealer association and producer of the Chicago Auto Show, is plugging into the electric vehicle revolution by hosting its first-ever Chicago Drives Electric event, Sept. 29-Oct. 2.

In addition to putting interested parties behind the wheel of some of the latest EVs, event organizers are bringing in a variety of experts to help break down the various aspects of EV ownership and tackle complex topics such as range anxiety; at-home charging solutions; on-the-go charging and infrastructure; tax credits and incentives; and where people can begin their search. On-hand experts will include Cars.com, CHARGE Enterprises, ComEd and Powering Chicago.

Automakers will have product specialists on hand throughout the event who will field consumer questions and as they relate to the vehicle brands they represent. Participating automakers include Alfa Romeo, Chevrolet, Chrysler, Ford, Hyundai, Jeep, Kia, Volkswagen and Volvo showcasing a variety of EVs like the Ford F-150 Lightning, Kia EV6 and Volkswagen ID.4, among others.

Focused on management and innovation within the entire EV battery lifecycle, Cox Automotive Mobility and Spiers New Technologies has expanded its global EV battery service center network with new facilities in Belleville, Mich., and Las Vegas. Cox Automotive Mobility in collaboration with Spiers New Technologies also operates end-to-end EV battery service centers in Oklahoma City, Okla., and Ede, Netherlands.

“The expansion of our EV battery service centers in the Midwest and West reinforces Cox Automotive’s commitment to being the world’s best battery health innovator and end-to-end battery services provider,” said Lea Malloy, AVP of EV Battery Solutions, Cox Automotive Mobility. “We’re taking charge of the EV battery lifecycle, offering efficient and sustainable solutions that will effectively extend battery first life and help keep batteries out of our oceans and landfills.”

With automakers investing billions in new EV models, and government-mandated environmental targets to achieve, battery-powered vehicles are becoming the dominant form of transportation for people and goods – not only in America but globally. As the world’s largest automotive services provider, Cox Automotive is strategically steering its business to support this transition and meet the needs of its customers now and in the future.

The company is constructing its global EV battery service network with dedicated locations across the U.S. and Europe. This model will allow Cox Automotive Mobility to remain agile in providing best-in-class EV battery services conveniently located near the customer – reducing the friction of logistics. Today, Cox Automotive and Spiers New Technologies are trusted battery advisors and engineering partners to numerous automakers.

With additional geographic expansion planned later this year, the company is scheduled to grow its global operating footprint to more than 1 million square feet.

The $437 billion Inflation Reduction Act will bring some large and small changes to the US auto industry and Auto Dealers. The bill includes incentives to help automakers speed up production of ‘clean vehicles’ and tax breaks for EV buyers. 

Major Take Aways: 

  • Used EVs $25,000 and under get to join the rebate party. 

A $4,000 credit for used EV begins after Dec. 31, as long as the buyer’s income tops out at $75,000 for a single-filing taxpayer or $150,000 for joint filers.

 

  • Starting in 2024, Buyers of new and used EVs will be able to apply their rebate tax credit at the point of sale equal to the value of their credits at registered Dealerships.  

 

  • Elimination of the cap on how many EVs are eligible for rebate tax credits.  

Under the old policy, only the first 200,000 EVs sold by a given manufacturer qualified for the credits.  GM, Toyota and Tesla have been fighting the old provision for some time, since their EVs did not quality anymore. In 2023, their vehicles will be eligible again -- as long as they meet the new North America and mineral-source requirements.

 

  • Fleets get a break, too. Commercial vehicles that aren’t powered by an internal combustion engine can qualify for a maximum $7,500 tax credit, with some of the value determined by weight restrictions.

 

The bills includes some ‘made in America’ provisions that may seem counter intuitive and will most certainly hamper sales for a few years, but will incourage more U.S manufacturing in the EV space in the long run. In 2024, only EVs with at least 40 percent of their minerals from the United States or nations with U.S. free trade agreements, or with materials recycled in North America, would be able to take full advantage of the reconciliation bill’s incentive. Cars would also need components manufactured in North America. 

The bill was passed by the 117th United States Congress and signed into law by President Joe Biden on August 16, 2022. 

CDK Global Inc., an auto retail software provider and a Brookfield portfolio company, released results of a survey that found significant challenges to reaching an all-electric future.
With electric vehicle (EV) sales on the rise, gas-powered vehicles still make up most sales, and at less than 5% of the market, sales of EVs would have to double every two years to get to a full-electric fleet by 2032. To better understand the barriers to adoption and how to help accelerate the shift to EVs, CDK surveyed more than 1,100 consumers who recently purchased a vehicle or intend to purchase a vehicle in the next two years.
CDK’s study found that while EV owners are extremely satisfied with a net promoter score (NPS) of 69, they still have concerns about the amount of time it took to charge their vehicle (69%), the availability of charging networks (60%), and vehicle range (56%).
For non-EV shoppers, nearly half (46%) reported they do not plan to buy an EV at any point in the future, which reveals a need for dealers to better educate shoppers on EV options, while continuing to sell and service gas-powered vehicles through the next decade and beyond.
The survey also revealed several insights for dealers looking to stay ahead of the curve with their customers, such as:
· 26% of shoppers who bought or planned to buy a gas-powered vehicle considered an EV—with 88% pointing to the dealer’s sales representative as introducing the option.
· EV buyers listed advanced technology as the top purchase motivator (25%), with a desire to reduce impact on the environment coming in second (23%).
· 40% of EV shoppers postponed buying an EV until they had their own garage due to concerns around easy and convenient access to charging facilities.
· Four out of five EV owners (81%) plan to get their vehicles serviced at the dealer. And while oil changes are the primary worry for owners of gas-powered vehicles, EV owners report the need for heath checks on batteries (61%), tire changes (44%) and high-voltage cable inspection (40%).
“While the headlines shout about the inevitability of an all-EV future, there is still a lot of work we must do to pave the way, while continuing to take care of consumer needs in the meantime,” said Barb Edson, chief marketing officer, CDK Global.

Used car prices are up 10.9 percent over last year as the microchip shortage continues to impact the auto industry, according to iSeeCars.com’s latest analysis of over 1.8 million used car sales in July. This is slightly up from a 10.5 percent increase in June and marks the second month of slight increases after four months of slowing price growth.

“Used car prices remained steady in July compared to June, and both months marked the first time in 2022 that saw a decrease in price for some used car models,” said iSeeCars Executive Analyst Karl Brauer. “We are also continuing to see a significant increase in demand for used electric and hybrid cars as a result of high gas prices, with the average cost of electric vehicles increasing by 56.7 percent and hybrid cars increasing by 30.5 percent compared to last year.” 

Although the average used car has significantly increased in price, iSeeCars’s analysis also found some vehicles have decreased in price or have lower-than-average increases.

The used car with the greatest price increase is the Nissan LEAF, which has risen in price by 43.8 percent compared to last year.

“The price increase for the LEAF, which was once the highest depreciating car on the market, is likely due to heightened gas prices as well as the heightened desirability for the redesigned 2018 model that offers increased range and is now coming off lease to enter the used car market,” said Brauer.

Two additional electric cars making the list are the Tesla Model S and Chevrolet Bolt. “Demand for used versions of the Model S waned in recent months as consumers embraced the more affordable Model 3 and the Model X SUV, but the long wait times for new versions of the Model S, which include March 2023 as the earliest availability for the base model, have driven consumers to the used market,” said Brauer. “The Chevrolet Bolt’s affordability, plus heightened interest in all electric vehicles, has led to its steep used car price increase.”

Five hybrid vehicles make the list including the Hyundai Sonata Hybrid, the Toyota Prius Prime plug-in hybrid, the Toyota Prius, the Toyota Avalon Hybrid, and the Lexus ES 300h. “Hybrid vehicles are in high demand due to soaring gas prices, with the hybrid category as a whole increasing in price by 30.5 percent,” said Brauer. “Hybrid sedans have seen a resurgence in popularity after falling out of favor when consumers previously embraced hybrid SUVs, again reflecting these sedans’ more affordable price and fuel-efficient drivetrains.”

The Fiat 500x subcompact SUV also makes the list. “The Fiat 500x is one of the most affordable SUVs on the market, with an average price of $21,407, making it attainable for drivers seeking affordable and fuel-efficient transportation,” said Brauer. 

The Porsche Cayenne luxury midsize SUV rounds out the list. “The wait time for a new version of the Porsche Cayenne is over a year, sending buyers who want this luxury SUV to the used car marketplace,” said Brauer. 

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