Demand for internal-combustion vehicles is staying steady amid the government push for more EV sales, said Mike Stanton, president and CEO of NADA, in a recent interview.
In the interview with Inside Automotive, Stanton talked about the gap between government goals and EV demand. He said manufacturers are doing a good job producing exceptional EVs but that consumers have yet to show much interest.
He expressed worries about EV oversupply and said industry professionals view some targets as overly aggressive and fast-paced. During the interview, Stanton argued for:
Realistic goals
Proper infrastructure
Consumer education to aid the transition to EVs
A unified national standard to replace the current patchwork of regulations
Stanton also commented on the strength of the franchise system in the interview with Inside Automotive’s with Jim Fitzpatrick and Shyann Malone, while dismissing hybrid sales models that would blend direct-to-consumer and franchise systems. He pointed to VinFast, a Vietnamese EV maker, that recently shifted from selling directly to consumers to selling through franchise dealers. Stanton said VinFast’s pivot to a dealer network supports the effectiveness of a franchise system.
Stanton also told interviewers the industry has not been dramatically affected by higher interest rates. But he acknowledged the possibility of further increases and warned they could cause more pressure on the market. He noted that with higher rates, consumers seem to find the leasing model more appealing, especially for higher-priced EVs.
