2023-12-27 10:12:00
The electric car market is regarding to face a major hurdle. As reported last Friday (22) by Bloomberg, the Drivers are not interested in purchasing pre-owned and used carsand this is affecting sales of new models.
Electric car prices are falling faster compared to combustion vehicles. Experts point out that buyers are avoiding these products due to the lack of subsidies and the intention to wait for more modern technologies, in addition to the deficiencies of battery charging networks.
The depreciation in the value of electric cars is aggravated by the fierce competition between Tesla and Chinese manufacturers that are expanding their investments in global operations and new technologies, such as BYD, which gained space in the Brazilian market with a diversified portfolio and national production of several models, such as the Yuan Plus.
To put this phenomenon into a numbers perspective, following a period of three years, combustion cars are sold for almost 69.2% of their original value. Electric cars depreciate faster and are sold for less than 60% of its original value.
Economy and market
26 Dez
Tech
25 Dez
In Europe, a significant portion of electric cars are sold through leasing, and as a result, manufacturers and dealers who finance these transactions try to recover losses by increasing borrowing costs. This affects demand in some markets that were leading the transition from fuel to battery.
“There is no used car demand for electric vehicles,” said Matt Harrison, Toyota Motor Corporation’s European operations director. “That’s really hurting the cost of ownership story.”
Prices for used electric vehicles fell by around a third from the start of the year through October, compared with just a 5% drop in the overall used car market, according to statistics from the iSeeCars.com. Used electric cars take longer to sell than combustion models, even following price cuts.
Another factor that compromises the demand for used electric cars is doubts regarding the health of the battery. Models that have already driven between 200 and 300 kilometers may be valid for certain types of use, but may become less attractive when considering the condition of the battery, which represents around 30% of the car’s price.
With the low demand for the models used, experts predict that problems will worsen in 2024 — year in which a significant number of lease contracts are expected to come to an end. As a result, there would be an increase in demand for a type of vehicle that, for now, the public does not yet seem willing to purchase.
Economy and market
20 Dez
Tech
14 Dez
The consequences will impact the new car market. Electric car rental companies and leasing companies have opted for electric vehicles, but the poor performance that these models present in the used market is causing these companies to adopt more conservative strategies, causing a surplus in inventory.
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