Crowded EV Market in ’24 to Force More Discounting, Likely Delays

Look for discounting on EVs to continue in the first half of 2024 as automakers adjust production and consumers respond, or don’t, to price cuts and the availability of the $7,500 federal tax credit available at point-of-sale as a down payment starting Jan. 1. That’s according to Wards Intelligence digital economy and sustainability analyst Christie Schweinsberg.

Automakers have cut prices of EVs while also offering generous lease terms and rebates in the past three months, and that should continue. Tesla, for example, cut prices more than 20% in the past year. Ford cut prices more than 10%. Overall average transaction prices dropped almost 19% this past fall, according to Cox Automotive, compared with prices in 2022.

Those price cuts impacted the average price of used EVs, which dropped 33.7% through October vs. the same month in 2022, according to iSeeCars.com.

“These trends should continue,” says Schweinsberg.

Listen to the WardsAuto Podcast with Senior Editor David Kiley and Schweinsberg on the state of the EV market as 2023 closes and a new year begins.

Automakers have numerous EV introductions planned for 2024, but consumer demand could impact timing of production and even slide some debuts into 2025. There are more electric CUVs coming – the hottest volume segment – which should bolster consumer interest. But if production gets ahead of demand, then consumers could wait for additional price cuts on the newest models.

Among the new EVs expected in 2024, according to Wards Intelligence: Acura ZDX (CUV); Audi A6 e-tron; Audi Q6 e-tron (CUV); Buick Electra (CUV); Cadillac Celestiq; Cadillac Escalade iQ (SUV); Chevrolet Equinox (CUV); Chevrolet Silverado EV; GMC Sierra EV; Dodge Daytona SRT; Fiat 500e; Ford Explorer (SUV); Honda Prologue (CUV); Hyundai Ioniq 7; Hyundai Ioniq 5 N and 6 N (CUVs); Jeep Recon; Jeep Wagoneer S (SUV); Lincoln Star (CUV); Lotus Eletre (CUV); Lotus Emeya; Lucid Gravity (CUV); Maserati Grecale Folgore; Maserati Gran Turismo; Mercedes-Benz EQG (SUV); Mini Aceman (CUV); Mini Countryman (CUV); Polestar 3 (CUV); Polestar 4; Porsche Macan (CUV); Ram 1500 REV; Tesla Cybertruck; Toyota Tacoma EV; Volkswagen ID.7;  Volksweagen ID.Buzz (CUV); Volkswagen IS. Space Vizzion; Volvo EX30 (CUV); Volvo XC60; Volvo EX90 (CUV).

Consumers needing or wanting new wheels in 2024 still have plenty of ICE vehicle choices.