5,000+ USA dealers push to ease EV rules over slow sales
By Kevin Joseph
September 27, 2024
Over 5,000 auto dealerships are reaching out to state and federal regulators, asking them to tweak the rules on-
emissions levels and EV mandates so they align more closely with what’s happening in the market today.
So, these dealerships have come together and signed an open letter – this is actually the third one in under a year.
They’re really hoping that policymakers will take another look at their clean-vehicle strategies and maybe make some changes after the presidential election in November.
Back in November 2023, a letter was sent to Joe Biden by 4,000 dealers, pointing out the problem of unsold EVs stacking up on lots.
In early 2024, a follow-up letter with the signatures of 5,000 dealerships highlighted their ongoing concerns.
Even though the changes to EPA regulations in April showed that regulators were paying attention, the dealers feel that there’s still more that needs to be done.
Even with the support from automakers and federal subsidies, plus a wider range of EV models available, sales of electric vehicles have only seen a slight bump, moving from-
8 to 9 percent of all vehicle registrations. A recent study from McKinsey has brought up some interesting points,
showing that 46 percent of current EV owners might be "very likely" to switch back to an ICE vehicle for their next purchase.
Customers mention concerns like charging times and where to charge, the costs of battery replacement and how well they perform in cold weather,
high insurance rates, significant depreciation, and the overall high purchase prices as reasons for being hesitant.
So, looking at the sales data for most of 2024, it really backs this up. Interestingly, July had an 18 percent bump in EV sales.
The dealerships have come up with a few ideas to tackle these challenges:Let's boost our charging infrastructure! By investing in more-
reliable and accessible charging stations, we can help ease those worries consumers have about finding a place to charge their vehicles.
Let’s work on enhancing battery technology! We should aim to create batteries that work well in cold conditions and last longer, which would help cut down on replacement expenses.
How about we subsidize insurance premiums? It could be a great way to offer some incentives or help lower those high insurance costs that come with owning EVs.
Lower Purchase Prices: Provide extra subsidies or tax incentives to help make EVs more budget-friendly for everyday buyers.
Let's boost public awareness by starting some educational campaigns that share the benefits and advancements in EV technology with everyone.
The dealerships are saying that if these adjustments aren't made, American drivers might struggle to afford new cars.
This could lead them to hold onto older, more polluting vehicles, which isn't great for the environment or the economy.