agent Entrepreneur logo
MenuMENU
SearchSEARCH

Market Not Ready for EVs

Reaching the Biden Administration’s goal of 50% of U.S. new vehicle sales being BEVs by 2030 is unlikely, says Jack Hollis of Toyota in a webinar.

August 25, 2022
Market Not Ready for EVs

Jack Hollis, Toyota

Credit:

Toyota Motor North America

2 min to read


 

Soft consumer demand is likely to hinder mass adoption of battery electric vehicles. Consumer demand just isn’t there yet, says Jack Hollis, executive vice president of sales at Toyota North America.

BEVs cost too much, and the infrastructure isn’t sufficient to charge vehicles away from home, Hollis reported in a recent Automotive Press Association webinar.

Ad Loading...

“I don’t think the market is ready. I don’t think the infrastructure is ready. And even if you were ready to purchase one, and if you could afford it … they’re still too high,” Hollis told listeners.

Kelley Blue Book data shows that BEV sales in the first half of 2022 were up 75.7% over a year ago for some brands. In total, BEV sales hit 370,726 in the first half of 2022, representing a market share of 5.2% of new vehicle sales versus 2.5% a year ago.

Teslas represented about two-thirds of the new BEV sales in the first half of 2022.

Mass market brands, such as Ford and Chevrolet, will roll out new BEVs in the next few years. But to date, most new BEVs are either luxury cars or big pickups and SUVS, priced in the luxury-vehicle range, Hollis said.

The luxury vehicles come with stiff price tags. For instance, the 2022 Ford F-150 Lightning starts at $39,947, with adding in options or destination charges, and before the $7,500 tax credit. Limited availability also plagues these vehicles. Ford noted that due to high demand consumers can no longer order these vehicles.

Ad Loading...

Hollis noted that reaching the Biden Administration’s goal of 50% of U.S. new vehicle sales being BEVs by 2030 is unlikely. He pointed to hybrid vehicles, which have both a gasoline engine and an electric motor, to explain why.

Hollis noted Toyota and other automakers have offered hybrid vehicles for nearly 25 years, but U.S. market share remains less 10%.

“It took 25 years to get to less than 10% (market share) for hybrid — which is affordable, which is done with resources that are available,” he said. The “rhetoric” around electric vehicles is way out ahead of consumer demand, Hollis said.

“The consumer isn’t demanding it at that level. The consumer is not screaming, ‘30% or 40% by tomorrow,’ ” Hollis added. “When you start pushing consumers into things, they’re not ready for, some other consequence will occur.”

 


 

Originally posted on Auto Dealer Today

More Industry

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...