Electric Vehicle Mandates: Car Dealers Raise Concerns Over Demand and Prices

A coalition of over 5,000 car dealers has publicly voiced concerns regarding the growing mandates for electric vehicles (EVs). Earlier this year, they had urged the White House to reconsider impending federal fuel efficiency regulations, which would compel automakers to significantly increase their EV offerings. Now, with mandates on the horizon, particularly in states advocating Zero Emission Vehicles (ZEV), dealers are sounding the alarm about what they perceive as insufficient consumer interest in these vehicles.

ZEV Mandate Overview

The ZEV states—including major markets like California, New York, and Washington—are expected to enforce stringent emissions standards set by the California Air Resources Board. By 2035, these regulations mandate that all new cars and light trucks sold must be zero-emission, encompassing both battery electric vehicles (BEVs) and plug-in hybrids. Starting in the 2026 model year, one-third of new vehicles sold must be BEVs, according to the dealers’ projections. They argue this will drive up the prices of gasoline-powered cars due to reduced availability, as fewer internal combustion engine vehicles will be allocated to dealerships.

Current EV Market Dynamics

While EV sales surged by 50% in 2023, the current trajectory suggests a slower growth rate of approximately 12.5% in 2024. This slower growth has raised eyebrows, particularly when viewed against the aggressive sales targets set for the upcoming years. The dealers cite a persistent lack of customer education on essential aspects of EV ownership, including charging logistics, battery longevity, and operational costs—factors they believe limit demand.

In a public letter, the dealers expressed concern that many consumers might not fully understand how to charge an EV, the associated costs, and issues like reduced range in colder climates. As a result, they suggest that car dealerships—the front line for consumer information—play a critical role in educating buyers about these new technologies.

Challenges Ahead

The car dealers contend that without a robust demand for BEVs, legislated mandates could lead to adverse outcomes for both businesses and consumers. The group argues that the current infrastructure and consumer knowledge gaps need significant improvement to support the shift towards EVs. They believe that forcing a transition without sufficient consumer readiness could inadvertently escalate prices, making it harder for average consumers to purchase vehicles.

As electric vehicle technology continues to evolve, the road to widespread adoption remains fraught with challenges. Car dealers are calling for a more supportive framework to facilitate the transition to electric driving while addressing the glaring issues surrounding consumer education and infrastructure development.

In this article, we explored the concerns expressed by car dealers regarding new EV mandates, highlighted the challenges related to consumer demand, and discussed the implications for the automotive industry. As we move forward, the success of electrification will ultimately depend on a collaborative approach that fosters understanding and accessibility for all consumers.