🚂 January 14: EVs Chug Along in 2024, eBay Acquires End-To-End Online Car Sales Platform, and Biden Finishes Up Some Chinese Bans

The Gist

• 🌵 EV Market Keeps Chugging Along: EVs hit 8.1% of U.S. market share in 2024, driven by incentives, lease deals, and new models. Tesla leads, but Hyundai and Ford are gaining ground.

• 🌐 eBay’s Caramel Concoction: eBay buys Caramel to streamline car sales with end-to-end services like financing, insurance, and shipping. It’s a potential game-changer for used-car dealers navigating online sales.

• 🏁 Tesla vs. Audi: Tesla sold more cars than Audi in 2024—Model Y and Model 3 alone outsold Audi’s entire lineup. Focused product lines seem to be Tesla’s secret sauce.

• 🤺 Biden Bans Chinese Cars: New rules block most Chinese vehicles from entering the U.S. by 2027, citing security concerns. It reduces competition but could complicate sourcing for parts.

• ☢️ Volkswagen’s Dip: Global sales fell 2.3%, with steep drops in China and Germany. On the bright side, VW plans 30 new models in 2025. Optimistic much?

• ⌛️ Kia’s Charging Delay: Tesla Supercharger access for Kia buyers has been pushed back to spring. Hyundai and Genesis might also face delays.

• ⛰️ Jeep & Dodge Finally Go Electric: EV launches hit dealerships after delays. Jeep Wagoneer S and Dodge Charger Daytona are pricey, but Stellantis promises more to come.

• 🐢 China’s EV Boom Cools: Growth slows to 15-20% in 2025 after years of subsidy-fueled surges. For U.S. dealers, this means less immediate competition from Chinese imports.

Fuel for Thought

• 🌵 EV Sales See Modest Growth

• 🌐 eBay’s Big Bet on Simplicity

• 🏁 Tesla Outpaces Audi—Without Breaking a Sweat

• 🤺 Biden’s Final Jab at China

• ☢️ Volkswagen’s Rough Road

• ⌛️ Kia’s Supercharger Setback

• ⛰️ Jeep and Dodge Make Their Electric Debut

• 🐢 China’s EV Growth Slows

🌵 EV Sales See Modest Growth

U.S. EV Market Share Hits 8.1%—Steady Progress with Competitive Pressures
The U.S. electric vehicle market continues its climb, with EVs making up 8.1% of all new car sales in 2024. A total of 1.3 million units were sold, marking a 7.3% increase from the previous year.

Notes:

• Tesla still holds the top two spots with the Model Y and Model 3.

• The Ford Mustang Mach-E secured its status as the leading non-Tesla EV, bolstered by updates and Supercharger compatibility.

• Hyundai emerged as a strong contender, riding the wave of Ioniq 5’s popularity and tax-credit eligibility.

What’s fueling growth?
Increased incentives, end-of-year lease deals, and new model launches from automakers like GM and Honda helped sustain momentum. Yet, Tesla’s dominance is being challenged as buyers explore alternatives, pushing the company’s market share lower.

What does it mean at home?
As EVs grow in popularity, understanding customer concerns—charging availability, incentives, and pricing—is more crucial than ever. With more models entering the market in 2025, offering clear, informed guidance could make a difference in sales.

🌐 eBay’s Big Bet on Simplicity

Caramel Acquisition Brings End-to-End Car Sales Online
In a move that could shake up the automotive sales industry, eBay is acquiring Caramel, an online platform that promises to streamline private-party and independent dealer transactions.

The How:

• Caramel handles all the nitty-gritty: paperwork, financing, ownership transfer, insurance, and shipping.

• The platform partners with marketplaces and auction sites to enhance accessibility for buyers and sellers.

Why now?
eBay has hosted vehicle auctions for years but left payment and logistics to dealers. With Caramel, eBay aims to close the loop, simplifying transactions and competing with Amazon’s Autos platform, which launched in 2024.

Another tool for dealers
This integration could open new opportunities for independent sellers and intensify competition in the used-car market. Dealers using eBay may benefit from streamlined processes but should be prepared for a learning curve.

🏁 Tesla Outpaces Audi—Without Breaking a Sweat

2024 Sales Cement Tesla’s Place in the Luxury Market
Tesla sold 1.79 million vehicles in 2024, surpassing Audi’s 1.67 million. The Model 3 and Model Y were the workhorses, accounting for over 95% of Tesla’s sales.

Deets:

• Audi’s sprawling lineup failed to match Tesla’s five-model portfolio.

• Tesla’s EVs remain industry benchmarks despite increased competition.

• BMW and Mercedes still lead the global luxury sales race, but Tesla isn’t far behind.

Tesla’s focused lineup continues to challenge traditional automakers to rethink their strategies.

🤺 Biden’s Final Jab at China

Tougher Rules Aim to Limit Chinese Vehicle Imports
The outgoing Biden administration has finalized sweeping rules to block nearly all Chinese cars and trucks from entering the U.S. market. The policy, rooted in national security concerns, targets both vehicle hardware and software.

What’s in the rules:

• Starting in 2027, vehicles with Chinese software will be banned. By 2029, hardware restrictions will follow.

• Commercial vehicles over 10,000 pounds, like electric buses, are exempt for now.

• Russian vehicle components are also included in the crackdown.

Pushback.
Major automakers, including GM and Toyota, lobbied for more time to adapt but were unsuccessful. Companies like Polestar, a Chinese-owned Swedish brand, are now navigating tighter restrictions to maintain their U.S. presence.

Implications?
The restrictions reduce direct competition from Chinese imports, particularly in the EV space. However, they also complicate sourcing certain components, potentially impacting costs and inventory.

☢️ Volkswagen’s Rough Road

Sales Decline as VW Faces Challenges at Home and Abroad
Volkswagen’s global deliveries dropped 2.3% in 2024, with declines in both Germany and China.

What happened?

• A 10% drop in China highlights fierce price wars and waning demand.

• Battery-electric vehicle (BEV) sales in China bucked the trend, growing 8%.

• VW plans to launch 30 new models in 2025 to regain momentum.

Sure VW’s right now is a bit rough, but they seem pretty optimistic about models and ideas coming soon. Ask us where “soon” is on the calendar… go ahead…

⌛️ Kia’s Supercharger Setback

Access Delayed Until Spring
Kia’s promise of Tesla Supercharger access has been pushed back from January to sometime in Q1 2025, leaving dealers and customers in limbo.

Why the delay?

• Kia cites software readiness issues.

• Hyundai and Genesis, which share the same EV platform, may also face delays.

For dealers, this delay complicates conversations around charging solutions for Kia buyers.

⛰️ Jeep and Dodge Make Their Electric Debut

First EVs Arrive After Software Delays
Stellantis finally brings its first electric Jeep and Dodge models to U.S. dealerships after addressing software challenges. These launches mark the company’s first serious step into electrification, with plans for more models in 2025.

What’s new:

• Jeep Wagoneer S:

  • Over 300 miles of range.

  • Starting price: $71,995.

  • Features include a 45-inch display cluster and a redesigned seven-slot illuminated grille.

• Dodge Charger Daytona EV:

  • Performance-oriented trims, with up to 670hp.

  • 0-60 mph in 3.3 seconds (Scat Pack trim).

  • Base price: $59,995 for the R/T model.

What’s next for Jeep and Dodge?
Jeep plans to debut its second EV, the Wrangler-inspired Recon, in mid-2025. Meanwhile, Dodge has announced a four-door electric Charger slated for the second quarter of 2025.

Considerations.
These launches come late but demonstrate Stellantis’ commitment to electrification. Dealers should prepare to educate buyers on the unique features of these EVs and navigate the higher price points.

🐢 China’s EV Growth Slows

Analysts Predict a Cooling Market in 2025
China’s electric vehicle market, which surged by 42% in 2024, is expected to see growth slow to 15-20% this year.

• Why the slowdown?

  • Subsidy cuts and price wars are reducing margins.

  • High penetration rates (over 50% of new car sales) leave little room for explosive growth.

  • Automakers are pivoting to in-car tech and smart features to differentiate.

For U.S. dealers, this signals reduced competition from Chinese imports in the near term.

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