Countdown to subsidy termination! The U.S. electric vehicle market is in a sales stagnation dilemma: Tesla's Q2 global deliveries fell by 13.5%
The U.S. electric vehicle market is facing a sales stagnation, with Tesla's global delivery volume in Q2 down 13.5%. Although automakers are attracting consumers through price cuts, concerns about range, purchase costs, and charging infrastructure remain. In June, electric vehicle sales fell 6.2% year-on-year, with market demand growth lagging. The tax incentive policy is about to expire, and if federal subsidies are not extended, electric vehicle sales will face greater challenges
According to the latest reports obtained by Zhitong Finance APP, despite automakers attracting consumers through significant price cuts, the acceptance of electric vehicles in the U.S. market has not seen a noticeable increase. The monthly lease price for the Ioniq 6 model launched by Hyundai at dealerships in New Jersey has dropped to as low as $169, while the Kia Niro EV offers leasing services starting at $129 per month. Notably, the monthly lease for the GMC Hummer EV, priced at up to $100,000, is only $650, which is roughly on par with the leasing costs of similar gasoline vehicles.
However, the price advantage has not translated into actual sales. Travis Shedron, a sales manager at a dealership in Indiana, revealed that while consumers may come in to check out new energy models like the Hummer EV, they ultimately tend to choose traditional gasoline-powered Cadillac or GMC models. Industry data shows that electric vehicle sales in the U.S. fell by 6.2% year-on-year in June, and Tesla's (TSLA.US) global delivery volume saw a significant decline of 13.5% in the second quarter.
Analysts point out that consumer concerns about range, high purchase costs, and insufficient charging infrastructure remain major obstacles. Currently, there are 75 electric vehicle models available in the U.S. market, a record high, but the growth rate of market demand is significantly lagging. Even though Tesla has implemented promotional measures such as zero-interest financing for models like the Model 3 and Cybertruck, showroom traffic remains primarily for experience, with a low actual purchase conversion rate.
Tax incentives have played a crucial role in supporting sales, and savvy consumers are particularly attentive to related subsidies. However, according to a new bill pushed by Republican lawmakers, the current maximum $7,500 tax credit for new energy vehicle purchases and the $4,000 subsidy for used vehicles will terminate on September 30. Although some automakers are alleviating user anxiety by offering home charging stations or covering public charging costs, the industry generally expects that if federal subsidies are not extended, electric vehicle sales will face even more severe challenges.
David Christ, President of Toyota (TM.US) North America, stated that policy changes will force the entire industry to accelerate strategic adjustments. The current market landscape shows that while manufacturers continue to launch more competitive product offerings, rebuilding consumer confidence still requires overcoming the three core bottlenecks of range, cost, and infrastructure
