Limited inventory, affordability challenges, reduced customer loyalty—we all remember the significant changes brought about by the pandemic. While these issues have started to dissipate, the automotive industry is now entering a new era as electric vehicles (EVs) take center stage. For as many opportunities as this next frontier creates, an equal number of challenges emerge. These headwinds include slowing sales velocity, EV prices that are still higher than ICE vehicles, and a noisy market saturated with new EV models.
In recent months, new-vehicle inventory levels have been on the rise, reaching some of their highest point in two years, according to monthly reporting by Cox Automotive. And when you drill into this issue, you quickly see that EVs are among the segments with the highest inventory — many EVs had more than 100 days’ supply at the end of July 2023. Additionally, Kelley Blue Book reported that the average price of an EV in July 2023 was still several thousand dollars higher than the average price of a new vehicle. The Inflation Reduction Act's tax credits for EVs, which have requirements for sourcing battery minerals and components from North America or a U.S. trade partner, have further limited the models eligible for previously available rebates.
In this new reality, automotive brands must rethink their marketing strategies to drive immediate sales and foster long-term loyalty. As a marketing expert with over 20 years of experience partnering with leading auto brands, I am here to offer insights and guidance for marketers and agencies seeking to navigate the road ahead. And if you’re attending this year’s Detroit Auto Show, I’d love to talk about this advice in-person — you can find me at the indoor Powering Michigan EV Experience, electrified by Volta!