As we dive into the second half of 2023, let's take a look at how vehicle sales and trends shaped up in the first half. Consumer preferences in the automotive industry have undergone a significant transformation towards used vehicles and electric vehicles (EVs). Factors such as economic uncertainties, technological advancements, and growing environmental concerns have all contributed to reshaping the overall landscape of the automotive market.
As we approach mid-year 2023, the growth of electric vehicles (EVs) continues to be a hot topic in the automotive industry. Prices of EVs are beginning to decrease, becoming more in line with the cost of traditional gas-powered vehicles. As technology continues to improve and production costs decrease, we can expect to see more affordable EVs in the future. This is already taking shape as we see many OEMs increasing their EV market share since January.
The growth of Rivian electric vehicles has been nothing short of impressive. Founded in 2009, this American automaker has quickly become a leader in the electric vehicle market, attracting attention from investors and customers alike. With a line of sleek and innovative SUVs and trucks, Rivian is making waves in the industry by offering vehicles with impressive range and off-road capabilities.
With the growing awareness of the need for sustainable transportation, more people are expected to switch to electric vehicles in 2023. According to Cross-Sell Interactive® EV sales data, January 2023 saw a 15.99% increase in EV, Hybrid, and PHEV sales compared to January 2022. Additionally, the EV Analysis Trends from the full year of 2022 tells a story of dominance by Hybrids, with EVs finally surpassing the crossbreeds in December and continuing to hold strong into the new year.
Electric vehicles continue to emerge as the way of the future. Learn how California incentivizes residents to purchase electric cars through the California Clean Vehicle Rebate Project.
Demand for cars is on the upswing after the latest pandemic wave has subsided. With the economy kicking into gear again, buyers are excited to make purchases, which signals a shift toward a more optimistic outlook than in the last two years. At the same time, gas prices have skyrocketed due to geopolitical events, and that will hurt consumers and hamper potential buyers. Yet, electric vehicles are gaining popularity and remain a staple of the industry. Some trends like gas prices ebb and flow, but there are permanent shifts in the automotive industry that aren’t going away — and car dealers need to plan accordingly to keep up with them.
Where the market environment stands now
The momentum behind EVs is undeniably growing. Globally, the sale of electric vehicles more than doubled in 2021, with some countries far ahead of that trend. Norway is at the top of the list, with 81 EVs per every 1,000 residents. In the UK, which comes in 6th, the percentage of purchased EVs increased by 76% between 2020 and 2021. China’s EV sales tripled between 2020 and 2021. The United States is not finding EV sales to be increasing quite as swiftly as in Europe or China, but sales are strong — and growing. The percentage of plug-in vehicles (both hybrid and electric) purchased in the US increased by 68.9% between February 2021 and February 2022. It’s tempting to believe that the car buyers of the world will collectively and altruistically decide to buy EVs to limit carbon emissions, but there are actually many factors at play as consumers decide whether or not to embrace electric vehicles.
It’s nearly impossible to keep track of everything dealerships need to be concerned about in 2022. Between supply chain issues and chips shortages, skyrocketing gas prices, the rise of electric vehicles, online vehicle shopping, and soaring prices across the board, nothing seems to be going quotes as planned.
Navigating your dealership through all of this chaos is nearly unthinkable — unless you’re staying informed about the latest industry trends and forecasts.
In this article, we’ll explore what’s been happening nationwide with used car prices, share expert predictions for what’s next, and demonstrate how targeted vehicle data can help you navigate these price changes.
Hybrid and all-electric vehicles are unquestionably the future of the auto industry. Electric vehicles (EVs) are more sustainable and more cost-effective than their gasoline-dependent predecessors. As the climate changes and gas prices spike, EVs are looking more and more like the ideal buy for drivers and the inventory must-have for dealerships.