Deep discounts can’t spur U.S. EV sales as buyers remain hesitant

Carmakers are slashing prices on electric vehicles, but American drivers are still slow to embrace them, The Wall Street Journal reported Sunday. Hyundai (OTCPK:HYMTF) dealers in New Jersey are offering Ioniq 6 leases for as low as $169 per month, while Kia’s Niro EV leases start at $129. Even the $100,000 GMC (NYSE:GM) Hummer EV is being leased for $650 monthly, comparable to gas vehicles that cost far less.

Despite the deals, many shoppers are sticking with traditional models. At a dealership in Indiana, sales manager Travis Shedron said customers often check out the Hummer EV but leave with a gasoline-powered Cadillac or GMC instead.

Industry-wide, EV sales have fallen for three consecutive months. Research firm Motor Intelligence reported a 6.2% drop in June, while Tesla’s (NASDAQ:TSLA) global sales declined 13.5% in the second quarter.

Analysts say concerns over vehicle range, high costs and limited charging options continue to hold buyers back. Although more EV models are available than ever, with 75 currently for sale in the United States, demand has yet to catch up.

Tesla (NASDAQ:TSLA) has aggressively cut prices and offered incentives like zero-percent financing on models such as the Model 3 and Cybertruck, but showroom traffic often comes from curious tourists rather than serious buyers.

Tax credits have helped boost EV sales, especially for budget-conscious shoppers, but those incentives are set to expire on September 30 under new legislation backed by Republican lawmakers. Up to $7,500 in credits for new EVs and $4,000 for used ones will no longer be available after that date.

Some automakers are offering free home chargers or covering public charging costs to ease buyer concerns, but analysts expect that EV sales will face a tough road ahead once federal subsidies disappear.

David Christ, North American head of Toyota, said the upcoming policy changes will force the industry to adjust quickly, the Journal reported.