We recently published an article which outlined the best ways to reduce the wait for an Electric Vehicle. But why are EV lead times so long in the first place?
From manufacturing issues to an exponential increase in demand, we outline the entire picture below.
Manufacturers can’t keep up with demand
The all-electric boom happened just as the globe’s supply chains saw unprecedented disruption. Manufacturers around the world are still playing catch up, which directly impacts the price-premium of electric cars today.
100,000s of UK drivers up and down the country now want access to zero tailpipe emission motoring; reducing their personal impact on the planet and saving £100s in running costs every year.
Because of this seismic shift in motoring habits, manufacturers have been unable to keep up with the demand for EVs.
With loveelectric, you get exclusive access to our bespoke app - therein lies hot offers, in-stock EVs ready for delivery and the ability to produce bespoke quotes just for you.
Manufacturers are slow to adapt
Since 2019, EV uptake has grown hugely year-on-year. This rapid uptake in electric cars happened to coincide with the largest disruptions to contemporary society outside of war.
The repercussions of that period are well documented and still being felt by the largest manufacturing industries today. Not least of all the automotive industry.
The automotive industry has typically deployed a ‘just in time’ build-strategy, whereby OEMs will order key components - such as semiconductors - just before the vehicle is due to start production. Manufacturers actually pared back their orders due to dwindling car demand in 2020, resulting in a stock deficit that is still felt today.
In short, manufacturers are still playing catch up. The combination of global supply disruptions in 2021, coupled with the giant shift towards electrified powertrains has exposed the car industry’s weakest manufacturing points.
However, it isn’t all doom and gloom. Cars are being made and rubber is being put to the road. See the EVs with the shortest lead times below.
Working from home
Although it may sound like a peculiar link, the dramatic rise in working from home (WFH) has also had an impact on the automakers’ supply chain.
Semiconductors and microchips are used in nearly every piece of business tech out there: laptops, mobile phones, wireless comms etc. all rely on the same semiconductors. So as the increase in WFH rose sharply, so too did the requirement for more tech and the semiconductors powering them.
Additionally, other industries - such as electronics manufacturers - typically don’t rely on the “just in time” manufacturing process like automakers. This left OEMs at the back of queue, as competing industries procured all of the extra semiconductors as a consequence of automakers reducing their typical order.
With the production of semiconductors stalled, experts predict supply won’t satisfy demand until 2024. Luckily, we have plenty of stock available to order right now.
loveelectric has direct relationships with manufacturers and the largest leasing companies in the UK. That means exclusive access to stock at a hugely discounted monthly price, before it goes public.
See how much you could save - both time and money - on the latest electric cars via salary sacrifice by clicking below.
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