## Car Dealers Raise Alarm About EV Demand Ahead of Zero-Emission Regulations
Recently, a collective of more than 5,000 car dealers has expressed serious apprehensions regarding the escalating push to sell electric vehicles (EVs) amidst what they describe as inadequate consumer appetite. These dealers are especially concerned about the implications of impending federal and state laws mandating automakers to offer a larger share of zero-emission vehicles (ZEVs), including battery electric vehicles (BEVs) and plug-in hybrids.
### The Drive for Zero-Emission Vehicles
The core of the worry originates from the requirements established by the **California Air Resources Board (CARB)**, which have been embraced by 17 other states and the District of Columbia. These states, referred to as the **Zero Emissions Vehicle (ZEV) states**, adhere to California’s rigorous emissions criteria. The regulations stipulate that by 2035, all newly sold cars and light trucks must be zero-emission vehicles. This encompasses BEVs, plug-in hybrids, and hydrogen fuel cell vehicles.
The shift to ZEVs is set to accelerate with the debut of the 2026 model year, scheduled to commence in the middle of next year. By that point, dealers assert that one-third of all new vehicles sold in ZEV states must be BEVs. Nonetheless, they contend that the current market demand for EVs is insufficient to fulfill these expectations, raising alarms regarding possible economic and logistical repercussions for both consumers and dealerships.
### The Dealers’ Apprehensions
The primary concern among car dealers is that the mandates will disrupt the equilibrium between supply and demand, especially for internal combustion engine (ICE) vehicles. As manufacturers adjust production to comply with ZEV requirements, the availability of gasoline-powered and hybrid vehicles is expected to decline. This shortage of traditional vehicles could lead to increased prices, making them less affordable for consumers who are not yet ready to transition to electric.
In a public declaration, the dealers cautioned that the mandates would lead to a “de facto” scenario in which dealerships must sell more EVs, even when consumer interest is low. They posit that this could result in elevated prices for both EVs and ICE vehicles, ultimately disadvantaging consumers.
> “This is a de facto mandate, as dealerships will be allocated fewer internal combustion engine and hybrid vehicles, and due to the lack of BEV sales, the result will create excessive demand driving up prices for customers,” the group stated.
### Sluggish EV Sales Expansion in 2024
Although EV sales have been on the rise, the pace of growth has decelerated in 2024 compared to the prior year. In 2023, EV sales skyrocketed by 50 percent, but in 2024, the growth rate has diminished to approximately 12.5 percent. While this still represents positive growth, dealers argue that it falls short of justifying the swift transition toward ZEVs mandated by upcoming laws.
Some industry analysts have noted that characterizing this slower growth as a “flatlining” of EV sales is an overstatement. However, the dealers assert that the deceleration in growth indicates that consumer demand is not aligning with regulatory targets.
### Gaps in Consumer Knowledge
A key issue highlighted by the dealers is the lack of consumer awareness and understanding regarding EVs. They argue that many prospective buyers are still unsure about several essential elements of EV ownership, including:
– **Charging Infrastructure**: Many consumers are unclear about where they can charge their EVs and how long it takes to fully charge a vehicle.
– **Battery Life**: There is considerable confusion surrounding the lifespan of EV batteries and the costs associated with their replacement.
– **Range Anxiety**: Concerns about losing range, especially in colder climates, continue to pose a significant obstacle for numerous potential EV purchasers.
The dealers contend that these knowledge deficiencies are hindering faster EV adoption. Notably, they emphasize that dealerships should serve as the primary source for consumers to inquire about these issues and obtain the necessary information to make informed choices. Nonetheless, the dealers suggest that greater efforts are needed to educate consumers on the benefits and challenges associated with EV ownership.
### The Larger Context: Federal Regulations and Industry Changes
The dealers’ concerns emerge at a moment when federal and state authorities are intensifying efforts to mitigate carbon emissions from the transportation sector. Earlier this year, the dealer group urged the White House to reassess forthcoming federal fuel efficiency regulations, which would obligate automakers to offer a larger fraction of EVs. These regulations form part of a broader initiative to combat climate change by reducing greenhouse gas emissions from vehicles, a significant contributor to pollution in the United States.
Automakers have been heavily investing in EV technology and infrastructure. Major corporations such as **Ford**, **General Motors**, and **Tesla** have unveiled ambitious plans to electrify their fleets over
