Manufacturers Vying for Position in EV Market, says Cloud Theory Report
GRAND RAPIDS, Mich., Oct. 19, 2023 /PRNewswire/ — As the demand for electric vehicles (EVs) continues to rise, automotive manufacturers are facing challenges in meeting government targets and matching sales with inventory levels. While Tesla remains the market leader, no other manufacturer has emerged as a strong contender. These insights are part of a comprehensive report titled “Charging Ahead: Which EV Brands Will Dominate the Next Decade? A Comprehensive Report Covering the Past, Present, and Future of Electric Vehicles by OEM”. The report is authored by Rick Wainschel, VP of Data Science and Analytics at Cloud Theory.
According to Wainschel, the auto industry faces a significant task as the Biden administration aims for EVs to capture 67% market share by 2032. Although EV sales are increasing, they are not keeping up with the growth in inventory. In September 2023, the average time it took for an EV to sell after being listed on a dealer’s lot doubled from 36 to 80 days.
Cloud Theory’s research reveals that EV inventory has nearly doubled from 3% in January 2023 to 6% in September 2023, while EV sales have seen a modest increase from 3% to 4% during the same period. Additionally, the number of EV models with average inventories of 1,000 or more has surged from 2 to 27 in Q3 2023, indicating numerous new introductions over the past year.
Despite manufacturers’ plans to increase supply, consumer demand is not currently aligning with the industry’s goals. According to a survey conducted by the Associated Press-NORC Center for Public Affairs Research, only 19% of US adults expressed a strong likelihood of purchasing an EV in the future, while 47% stated they were unlikely to do so.
To achieve the 2032 targets, the auto industry must overcome several challenges, including improving battery capacity, expanding charging infrastructure, establishing universal charging standards, addressing consumer reluctance through effective marketing and social media, and transitioning away from traditional fuel sources.
In terms of market competition, Tesla holds a dominant position, leaving other manufacturers scrambling to challenge its market share. BMW and Mercedes have achieved more than 12% EV sales as a share of their total sales in 2023 but lag behind in terms of volume. GM and Ford, on the other hand, have sold higher volumes of EVs in 2023 but account for a smaller percentage of their overall sales.
The Hyundai Motor Group stands out with one of the most comprehensive EV lineups among competitors, including six vehicle models with inventories exceeding 1,000 in 2023. However, Tesla remains the clear leader in terms of total EV sales.
The report concludes that the EV market is at a critical turning point, and the industry will undergo significant changes in the next decade. Manufacturers who emerge as leaders in the EV space will be pioneers in driving innovation and creating a sustainable future.
Interested readers can access the full 40-page report, which provides detailed insights into leading OEMs in the EV market.
About Cloud Theory
Cloud Theory combines cutting-edge data, software, and artificial intelligence with deep industry knowledge to provide real-time competitive analysis for automotive manufacturers, agencies, and affiliates. The company’s tools and consulting services allow clients to navigate complex market dynamics and make informed decisions. Learn more at cloudtheory.ai.
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SOURCE Cloud Theory