Returning to the CES stage this week, Steve Greenfield from Automotive Ventures provided updates on the electric vehicle market since he presented at last year’s event.
From the cost of EVs to when the best time to buy one is, Greenfield touched on a variety of topics. Here are some key takeaways.
- The battery makes up to 40 percent of the total cost of an EV (depending on make and model).
- The industry is moving towards semi-solid and solid-state batteries to help with energy density as well as fire risks.
- Over 130 new EV models are expected to launch over the next two to three years in the U.S.
- EV owners drive fewer miles than ICE owners each year. EV owners drive approximately 7,000 miles each year, whereas ICE owners drive 12,000 miles. It seems to delaminate around geography, political affiliations, and different use cases, Greenfield suspects.
- Tesla had the highest number of EV registrations in the U.S. from January to October 2023 with a total of 537,622, making up 56.3 percent of the market share. Chevrolet had the second highest count with 55,952 EV registrations, followed by Ford with 55,155.
- EV resistance still exists. The top three reasons are range anxiety, charging speed, charger availability.
- Inductive charging is underway. For example, Tesla is currently working on a wireless home charger.
- When it comes to EV maintenance and repair, Greenfield suspects there will continue to be friction around Right to Repair.
“We have not yet seen how this plays out in the U.S.,” Greenfield said. “But we’re starting to get an indication that this is going to be pretty aggressive.”
Since there are over 2,000 moving parts on an ICE vehicle and just 20 on an EV, Greenfield also noted service will be less frequent. But that doesn’t mean service is not required, especially after the automaker’s warranty period.
Typically, an EV has a three-year warranty period (varies among brands) in which consumers visit their local dealerships. However, it’s important to note that 70 percent of EV owners start using independent repair shops once that period ends, Greenfield said.
Greenfield advises independent repair shops to start thinking about how they are going to be relevant in the future, regarding their plan to gather the tools and skills they need to repair EVs.
Greenfield concluded his presentation by sharing his thoughts on the near future.
“What we’re going to see over the year is an increase in incentives to help move inventory,” he said.
And if you’re looking to buy an EV, Greenfield suggests waiting six months.
“With the influx of new EV models entering the market and the uncertainty of what consumer demand is going to be, it’s going to be a great time to buy an EV,” he stated. “There will be great discounts over the course of the year.”