The global EV industry ended 2022 on a high note, selling close to 8.6 million units by the end of December of that year, according to Engadget. This is an increase of 2 million units from the previous year. While this is certainly an encouraging sign that total EV adoption is only a matter of time, it may still be a few years or even a few decades before EV registration numbers come up to that level.
The industry as a whole has yet to perfect such things as how to ship EVs and maximizing lead-to-order conversion. The EV revolution is on the horizon, but in order to drive sales this year, here’s what the EV industry should know.
Buyers Are Interested, But Held Back By Cost
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The uptick in sales speaks to a clear increase in buyer interest, but slow growth indicates that the cost of EVs is still prohibitive for the majority of consumers. With supply chain shortages still ongoing, it’s not likely that this will be resolved anytime soon. Still, consumer surveys are reporting encouraging statistics. Currently, 36 percent of Americans are in the market for an EV, according to Consumer Reports.
However, many of those interested say they may wait a few months more in the hopes that the price hike caused by supply shortages would abate. Ultimately however, those who need a car more urgently will end up buying a gas car. But the fact remains that demand is being driven up higher. Once price lowers down enough to reach a tipping point, we’re likely to see a significant spike in new EV registrations.
Making the Buying Process More Convenient May Drive up Sales
Supply issues present an important challenge to manufacturers. In order to secure profits, they’ll have to find ways to make EV models more affordable despite the lack of resources. Dealerships, however, have the advantage of attracting sales by making it more convenient for buyers to avail of EV incentives, such as federal tax credits. They can do this by handling all of the paperwork for them.
Several countries offer plenty of incentives to adopting EVs, but often require people to submit several different applications. Dealerships can also take advantage of grants from investment programs offered by manufacturers like Ford. Intended to broaden their market share, these will help insulate dealerships from the potential downturns if sales slow down even further.
Improvements in marketing strategies and other aspects of the industry are also in order if they are to eventually supplant internal combustion cars. To that end, there are a number of lessons the EV industry at large can take from its leaders. Tesla in particular sets a great example. Although known for its premium EVs, their tactics surrounding sales are a fantastic show of orchestration and coordination. Thanks to digitized admin, showroom, and analytics processes, Tesla salespeople can concentrate on selling more cars in a shorter amount of time.
Key Tech Areas Needed to Secure EV Markets
In order to truly hone into the world’s different consumer auto markets, EVs need to diversify in the same way traditional cars did. For example, in countries with relatively flat terrain like Germany and the US, the primary driving factor in vehicle choice is range, so long-haul models need to fully mature in order to truly capture those markets. Meanwhile, in highly urbanized places like India and South Korea, charging infrastructure is the top concern. Many technologies need to pass testing stages for EVs to truly dominate.
Across all markets, safety is a leading issue as well. EVs for the most part have all the trimmings of modern cars with advanced driver assist suites, but consumers are still worried about the likelihood of their cars’ onboard computer systems being hacked and putting them and their families in jeopardy.
This is one of the main reasons why EV interest went down in places like the US. As for this issue, EVs will have to find a compromise between simplifying their digital suites to minimize attack vectors and upping cybersecurity.
These major issues are already being sorted out by rising market competitors such as BYD. Once the dust clears and the industry at large has adapted to these problems, it’s likely that it will be nearly unrecognizable from how it is today.
