Category: Sales

Aug 19

July’s EV Sales Slump: Why the Mustang Mach-E, Genesis GV60, and Kia EV6 Struggled

A Challenging Month for Electric Vehicles

July’s sales figures for electric vehicles have highlighted a rough patch for some models, including the Ford Mustang Mach-E, Genesis GV60, and Kia EV6. Despite the growing popularity of electric cars, these models faced significant challenges that impacted their performance. Let’s delve into the reasons behind their disappointing numbers and explore what this means for their future.

Ford Mustang Mach-E: A Significant Decline

The Ford Mustang Mach-E, which once captivated buyers with its impressive debut, has faced a steep decline in sales this year. According to GoodCarBadCar, sales have plummeted by 20.61% compared to last year. In July alone, sales dropped from 4,970 units in 2022 to 3,937, marking a 20.78% decrease. This decline is surprising given the high demand for the Mach-E last year, where it was often unavailable due to its popularity.

Genesis GV60: Struggling with Limited Appeal

The Genesis GV60, a newcomer to the electric vehicle market, has encountered its own set of hurdles. In July 2022, the GV60 sold just 284 units, which fell to 261 units in July 2023, reflecting an 8.10% decrease. Although the year-to-date figures are improving, with sales jumping from 517 units in 2022 to 1,581 in 2023, the GV60 still faces challenges in gaining broader consumer traction.

Kia EV6: Incremental Growth But Overall Decline

The Kia EV6 showed a promising 12.88% increase in July, with sales rising from 1,716 units in 2022 to 1,937 units. Despite this positive trend, the year-to-date sales have fallen by 15.58% compared to the previous year. The EV6 offers significant savings on maintenance compared to traditional vehicles, and comes with Kia’s robust five-year or 60,000-mile warranty, yet it struggles to attract the level of enthusiasm expected.

Broader Market Factors at Play

The sales challenges faced by these electric vehicles may stem from broader market factors rather than a lack of consumer interest. The ongoing global chip shortage and supply chain disruptions have hindered production and availability. Additionally, some consumers are still hesitant to transition to electric vehicles, while others who have made the switch may be satisfied with their choices, affecting overall demand.

The future of these EVs remains uncertain as the market adjusts and evolves. Whether these models can recover and thrive in the coming months will depend on how effectively they navigate these challenges and adapt to changing consumer preferences.

Jul 21

Lotus Faces Tough Times: 2022 Sales Decline and Job Cuts on the Horizon

2022 Sales Drop and Financial Struggles

In 2022, Lotus saw a dramatic reduction in sales, delivering just 576 cars, a significant drop from the 1,566 vehicles sold in 2021. The cessation of production for the Elise, Exige, and Evora in 2021, combined with delays in new model releases, including the Emira and the Eletre SUV, contributed to this downturn. The company’s financial woes were exacerbated by a £145.1 million loss for the year, following an £86.6 million loss in the previous year, prompting a major restructuring.

Job Cuts and Operational Impact

To manage costs and streamline operations, Lotus plans to cut up to 200 jobs, primarily affecting engineering and administrative roles at its Hethel and Warwickshire facilities. Production workers will not be impacted, as the company focuses on increasing output of the Emira and the Eletre SUV. Despite these setbacks, Lotus aims to rebound with a record production year in 2023.

Future Developments and Challenges

The long-awaited Lotus Evija electric hypercar still has unsold units from its initial production run, with deliveries starting in August. Additionally, Lotus is working on a new electric sports car, originally a joint venture with Alpine, now a solo Lotus project expected by 2026. This new model will face competition from Porsche’s upcoming electric 718 replacement, highlighting the competitive and rapidly evolving nature of the electric vehicle market.

Jul 20

Tesla Model Y Surges Ahead in SUV Sales, Outpacing Previous Favorite

A New Leader in SUV Sales

As of mid-2023, the Tesla Model Y has clinched the top spot in SUV sales, outshining its competitors. This electric SUV, known for its striking design and advanced technology, has captivated many drivers despite some concerns about build quality and autonomous features. With over 105,500 units sold this year, the Model Y has surpassed the Toyota RAV4, which was previously the top contender.

The Appeal and Challenges of the Tesla Model Y

The Tesla Model Y’s popularity stems from its impressive range options, customizable features, and standard all-wheel drive. Offering three trim levels—Standard, Long Range, and Performance—each model caters to different needs and budgets, with prices starting at $47,490. Despite fluctuating prices and the company’s dramatic price adjustments, the Model Y remains a leading choice due to its innovative technology and federal tax credit eligibility.

The Toyota RAV4: A Resilient Competitor

The Toyota RAV4 continues to be a strong contender, with 102,313 units sold this year, closely trailing the Model Y. Known for its reliability and value, the RAV4 offers a spacious interior and a starting price of $27,575. Despite the Tesla Model Y’s dominance, the RAV4’s consistent performance and affordability ensure it remains a popular choice among SUV shoppers.

Jul 12

Porsche Taycan Sales Struggle Amid Supply Issues and Competitive Market

Sales Decline Amid Supply Challenges

In the second quarter of 2023, Porsche saw a drop in U.S. deliveries to 18,895 vehicles, marking a 3% decrease from the previous year. This decline is part of a broader trend, with Porsche Taycan sales falling 35% compared to last year, continuing a downward trajectory for the sixth consecutive quarter. The company attributes this drop to ongoing supply chain issues, though they are optimistic about future improvements.

Positive Outlook Despite Setbacks

Despite the overall downturn, there are some signs of recovery. June 2023 marked a notable improvement with the highest number of Taycan sales this year, signaling potential stabilization as supply constraints ease. Porsche remains committed to enhancing production and is hopeful that the upcoming launch of the all-electric Porsche Macan will bolster their market presence and sales performance.

Future Prospects and Market Competition

Porsche’s current challenges are compounded by the loss of the federal tax credit, which could further impact sales. As the automotive industry shifts rapidly toward fully electric vehicles, Porsche faces stiff competition from luxury brands like Audi, BMW, and Mercedes-Benz. The company will need to accelerate its transition to electric vehicles to maintain its competitive edge and meet evolving consumer expectations.

Jul 11

Mercedes-Benz Sees Record-Breaking Surge in Electric Vehicle Sales in Q2 2023

Q2 2023 Sales Overview

In the second quarter of 2023, Mercedes-Benz experienced a slight decline in overall vehicle sales in the United States, totaling 77,287 cars—a 2.3 percent drop from the previous year. When including commercial vans, the total sales amounted to 96,019, marking a 2.8 percent decrease year-over-year. Despite this, Mercedes-Benz has reason to celebrate as their electric vehicle sales have soared to unprecedented levels.

Electric Vehicle Milestones

The second quarter was particularly remarkable for Mercedes-Benz’s all-electric vehicles, with sales hitting 11,927 units—a staggering 509 percent increase from the previous year. This surge represents 15.4 percent of the brand’s total vehicle sales, driven largely by the new EQE SUV and EQS SUV models, which have quickly become customer favorites. The success of these models highlights the growing shift towards electric mobility and the strong reception of Mercedes-Benz’s latest electric offerings.

Strong Start to 2023 for Mercedes-Benz Electric Vehicles

So far in 2023, Mercedes-Benz has sold over 19,000 electric vehicles, accounting for nearly 14 percent of their total sales volume. Key contributors include the EQB, EQE Sedan, EQE SUV, EQS Sedan, and the new EQS SUV. With a year-to-date increase of 376 percent, the brand is on track to potentially exceed 40,000 electric vehicle sales this year, underscoring a significant shift towards electric options among consumers.

Mercedes-Benz’s commitment to expanding its electric lineup and increasing the availability of high-performance models is clearly resonating with customers, marking a transformative period for the brand in the electric vehicle market.

Jul 11

BMW Group Doubles All-Electric Vehicle Sales in Q2 2023

Record-Breaking EV Sales

In the second quarter of 2023, BMW Group achieved a remarkable milestone, with all-electric vehicle (BEV) sales more than doubling to 88,289 units, marking a 117% increase from the previous year. This surge brought the BEV share of BMW Group’s total vehicle sales to a historic high of 14.1%. This robust growth underscores the company’s successful strategy and timely product launches, which have clearly resonated with consumers.

Strategic Shifts and Future Plans

Despite the impressive BEV figures, plug-in hybrid electric vehicles (PHEVs) have seen a decline, with sales falling 14% compared to the previous year. However, overall, plug-in vehicles now make up 21.5% of BMW Group’s total sales, reflecting a significant shift towards electrification. Looking ahead, BMW plans to further boost its all-electric lineup, with ambitious targets to have at least 20% of new vehicles fully electric by 2024, advancing to 33% by 2026.

Jul 11

Toyota and Stellantis Challenge Biden’s Ambitious Electric Vehicle Sales Plan

Automakers Raise Concerns Over New EV Sales Targets

The Biden administration’s push to reduce auto emissions through increased battery-electric vehicle (BEV) sales is facing criticism from Stellantis and Toyota. Both automakers argue that the proposed targets are overly aggressive and may strain the supply of essential minerals needed for EV batteries. They also express concerns that the plan fails to account for significant obstacles such as the lack of domestic mineral resources, insufficient infrastructure, and the high cost of electric vehicles.

Industry Reaction and Future Implications

The Environmental Protection Agency (EPA) has proposed the strictest tailpipe emission limits to date, aiming for BEVs to comprise 67% of new light-duty vehicle sales and 46% of new medium-duty vehicle sales by 2032. This ambitious goal surpasses earlier targets set by President Biden, who aimed for 50% zero-emission vehicles by 2030. While Tesla supports even stricter requirements to accelerate EV adoption, Stellantis and Toyota caution that the rapid transition could pose risks to manufacturing capacity and consumer acceptance, urging for a more gradual approach.

Jul 11

Toyota and Stellantis Challenge White House’s Ambitious EV Sales Targets

Automakers Criticize White House’s EV Sales Strategy

Toyota and Stellantis are raising concerns over the Biden administration’s ambitious plan to boost battery-electric vehicle (BEV) sales, arguing that it imposes unrealistic expectations and places undue strain on essential mineral resources. According to their statements submitted to the federal government, the proposed emissions standards for cars and light trucks are excessively optimistic and could marginalize plug-in hybrid vehicles (PHEVs). Both automakers highlight that the plan underestimates the challenges of sourcing rare minerals for batteries, building necessary infrastructure, and managing the high costs associated with BEVs.

Industry Response and Future Outlook

The proposed regulations are set to introduce the most stringent tailpipe emission limits ever, starting with the 2027 model year, aiming for a significant increase in BEV adoption. The Environmental Protection Agency (EPA) anticipates that by 2032, BEVs will account for 67% of new light-duty vehicle sales and 46% of medium-duty vehicle sales, surpassing previous goals set by President Biden. However, critics argue that these targets are overly ambitious, suggesting that the industry may face substantial hurdles in ramping up production and meeting consumer demand for electric vehicles. Despite the controversy, some like Tesla support more stringent regulations, while others, such as Ford, advocate for a gradual transition to avoid abrupt industry shifts.

Jul 11

Is Now the Time to Buy? Midsize Pickup Truck Sales Slump in 2023

Declining Demand for Midsize Trucks

Midsize pickup trucks, offering a blend of utility and maneuverability, are experiencing a surprising dip in sales this year. The Chevrolet Colorado, Nissan Frontier, Jeep Gladiator, and Ford Ranger—four prominent models in this segment—are all seeing diminished demand. This decline is unexpected, especially given the new Frontier’s debut, which might be suffering from supply chain issues or new model teething problems.

Factors Affecting Sales

The Jeep Gladiator, once a strong contender with rising sales figures, has seen a significant drop of 30% year-over-year in 2023. Despite its earlier successes, it is projected to sell under 55,000 units this year, a stark contrast to its peak performance. Similarly, Ford and Chevrolet are hoping that their new 2024 Ranger and Colorado models will reinvigorate interest, though buyers may be waiting to test these latest offerings.

Exceptions to the Trend

Not all midsize pickups are struggling; the Toyota Tacoma and Honda Ridgeline are bucking the trend with sales increases. The Ridgeline, despite skepticism about its unibody design, has seen nearly a 40% increase in sales this year. The Tacoma remains a strong performer with a 7.5% sales boost, although the Frontier’s sales have decreased by over 20%.

Insights and Predictions

Interestingly, the Ford Ranger has faced a notable decline, falling almost 30% from the previous year’s figures. This drop contrasts with the increasing sales of the Ford F-150, which has risen by 10%. Meanwhile, smaller models like the Hyundai Santa Cruz and Ford Maverick continue to gain traction, with both showing sales growth compared to last year.

As we approach the end of the year, it will be crucial to watch how these trends develop and whether upcoming model updates or market shifts will alter the sales landscape.

Jul 11

US: Mitsubishi Outlander PHEV Set Sales Record In Q2 2023

Mitsubishi Motors North America (MMNA) reports that its vehicle sales in the United States during the second quarter of 2023 improved by over 12 percent year-over-year to 24,602. Nonetheless, the year-to-date result remains in the red at 45,540 (down 5.7%).

Meanwhile, Mitsubishi’s only plug-in model – the new 2023 Outlander PHEV – in Q2 noted 1,620 sales (up 298 percent year-over-year), which is the second consecutive quarterly record.

The Japanese plug-in hybrid is not expected to conquer the US market, but it’s doing better than ever, representing 6.6 percent of the brand’s total volume.

The regular Outlander also sells well (14,368 units and a new record in Q2), outselling the PHEV 9:1.

So far this year, Mitsubishi Outlander PHEV sales in the US amounted to 3,217 (186 percent more than a year ago), and 7.1 percent of Mitsubishi’s total volume.

Let’s note that this is actually not that bad result. For example, the PHEV share out of Toyota sales in the first half of the year was just 1.5 percent (plus additional 0.4 percent BEVs).

Mitsubishi has already beat its 2022 plug-in hybrid car sales (1,961 units) and is on the right path to set a new annual record (the current one is 4,166 units in 2018). 6,000 units should not be a problem, assuming 1,500+ per quarter.

Cumulatively, the company sold over 18,000 Outlander PHEVs in the country, compared to well over 300,000 sold globally (mainly in Europe) since 2013.

Before the end of this decade, Mitsubishi intends to offer more rechargeable models. We heard about several all-electric vehicles by 2028, including pickups and SUVs. It would be great to see some new BEVs, which potentially would enable the brand to truly rebound.

As we understand, the market launch of new BEVs in the US – in partnership with other brands in the broader Renault-Nissan-Mitsubishi Alliance – must be combined with local production, to be eligible for all incentives. That would be a significant investment and potentially will be related to Nissan’s manufacturing plant (Mitsubishi sold its plant in Illinois to Rivian quite some time ago).