Auto industry executives acknowledged this week that their ambitious electric vehicle (EV) plans may be at risk due to increasing inventory and declining sales. Top executives at major car companies expressed concerns about the growth of the electric car market, as doubts about the feasibility of these vehicles jeopardize their expensive plans for electrification.
GM CEO Mary Barra, who has been optimistic about electric vehicles in the past, is now expressing concerns along with others in the industry. GM has been a pioneer in the electric car market, selling the Chevrolet Bolt for seven years and advocating for an all-electric future ahead of its competitors.
During GM’s third-quarter earnings call, CEO Mary Barra announced that the company is no longer confident in meeting its targets of producing 100,000 electric vehicles (EVs) in the second half of this year and 400,000 by the first six months of 2024. GM is uncertain about when it will be able to achieve these goals.
GM’s change in perspective on electric vehicles was unexpected by investors, but it is not the only company reevaluating its stance. Tesla’s Elon Musk also expressed concerns about diminishing vehicle demand due to economic factors, despite being a prominent player in the EV market.
Mercedes-Benz is openly acknowledging the challenges in the EV market and offering significant discounts on their electric vehicles to boost sales. Manufacturers are beginning to acknowledge the slowing demand for electric vehicles as dealerships are experiencing a build-up of inventory.
“People are finally seeing reality,” Toyota Motor Chairman Akio Toyoda said at the Japan Mobility Show, the Wall Street Journal reported. Toyoda has long been skeptical of his peers’ pure-electric blueprints.
Reference- Wall Street Journal, Bloomberg, Business Insider, Reuters