Carvana's used EV trends, GM retires Chevy Malibu, EV vs hybrid sales

Hey everyone. CDG Media is growing quickly and we need some more hands to keep bringing you the top automotive industry news and content.

Interested in joining our editorial team (or know someone who might be)? Check out our latest opening for a Content Writer!

—CDG

1. Carvana’s used EV sales are growing

Top line: Online used car retailer Carvana has released a Q1 EV trends report highlighting the potential growth trajectory of its used electrified sales.

Background: Carvana is a Fortune 500 company that facilitates used car financing, trade-ins, and sales completely online in 300 U.S. markets. With such a large presence in the U.S., Carvana has leveraged its own data plus other metrics from Kelley Blue Book and MarketCheck to glean insights into where used EV sales could be headed. 

Findings: As a greater mix of new EVs enter the market, over time, the volume and selection flow into the used car market.

• In 2023, EVs made up 7.6% of new car sales, while used EV sales made up 1%.

• Carvana’s used EV sales grew to a new high of 4.3% in Q1 2024, up from 1.8% a year ago.

• With more options available, the average sales price of a new EV has dropped from $37,000 in Q1 2023 to $31,000 in Q1 of this year. 

• This has helped narrow the gap between used EV prices and used gas-powered cars. Now, only $7,000 separates the two segments, compared to $13,000 a year ago.

Between the lines: While car buyers reap the benefits of lower prices, used EV owners are contending with faster rates of depreciation, which raises concerns about resale value. 

What’s more: Carvana’s EV sales are also increasing in many states across the country. Texas, Virginia, and Georgia broke the 4% threshold of Carvana’s total sales. Florida, Montana, and Arizona exceeded 5%. States like Minnesota, Arkansas, and Kentucky saw the largest change in EV sales mix year-over-year.

Incentives: Under the Inflation Reduction Act, certain used EV models qualify for an instant tax credit of up to $4,000. In Q1, 24% of Carvana’s EV and plug-in hybrid sales met the eligibility requirements for this credit. Carvana’s top eligible models were the Nissan Leaf, Tesla Model 3, and Chevrolet Volt. 

Bottom line: With more EV options, narrowing price gaps between gas-powered and EV vehicles, and available tax incentives, market access for used EV buyers is growing.

2. GM says goodbye to the Chevy Malibu

General Motors announced that Chevy Malibu production will end in November of this year, after a 27-year run since its 1997 comeback. This change comes as GM retools its Fairfax Assembly Plant in Kansas for its next-gen electrified vehicles.

Why it matters: The Malibu, Chevrolet's last remaining sedan, will make way for the Bolt EV in GM's shift toward an EV future. GM has invested $390 million in its Kansas plant to produce the Bolt using the new Ultium platform.

Quick facts:

• 10 million: Total global Malibu sales across nine generations.

• 32,749: Malibu U.S. sales in Q1 2024, down 13% from the previous year.

More details:

• The Cadillac XT4 will temporarily pause production in January 2025 to further revamp the Fairfax plant for both the XT4 and Bolt EV. Production is scheduled to resume later that year.

• GM spokesperson Kevin Kelly told The Detroit News that the plant's 2,200 employees will face temporary layoffs due to the transition.

What's next: GM CEO Mary Barra confirmed that the redesigned Bolt EV will return in 2025 on the Ultium platform, aiming to position GM strongly in the EV market.

3. Where do electrified vehicle sales stand?

At a glance: Automotive consultancy and technology firm Urban Science released a microstudy analyzing the performance of electrified vehicle sales so far this year. By the end of 2023, one in six vehicles sold had an electrified powertrain. This increased to nearly one in five by April 30.

By the numbers:

• As of April 30, total retail industry sales reached 3,892,181, an increase of 1.2% year-over-year.

• EV sales roles 2.8% from this time last and gained a retail share of 8.1%.

• Plug-in hybrid sales increased 24.8% from a year ago and captured 2% market share.

• But non-plug-in hybrid sales rose the most, up by 33.4% year-over-year with a 9.8% retail market share. 

• Plug-in hybrids and EVs combined have roughly the same market share as conventional hybrids. 

• Together, plug-in hybrid and conventional hybrid sales grew 31% year over year, far exceeding the industry's overall sales growth rate.

Driving the data: Hybrids are growing in popularity among consumers as a transitional pathway to a more electrified future. 

What’s more: Conventional and plug-in hybrids don’t share all the same challenges as pure EVs. Most hybrids can run fully electric for short trips (20 to 40 miles) before needing to use gas, and drivers don’t have to completely change the way they fuel up, either. Coupled with falling prices and tax credits, hybrid sales have the potential to grow even more. 

Read my deep dive on hybrids here. 

• ConsumerAffairs has pinpointed the states with the most and least road rage.

• LA-based Eli Electric Vehicles is launching its flagship zero electric micro-car in the U.S. later this year, starting at just $11,990. 

• Steve Hill, vice president of global commercial operations, will take over as president of GM China on June 1.

• Ford now says it could continue to sell gas-powered cars in Europe after 2030.

• The Tesla Cybertruck’s FSD (Full Self Driving) release is just “a few months aways.”

We’ve got tons of great jobs hitting the CDG Job Board right now. Here are some standouts for anyone looking for their next move.

• Feel at home in the dealership? Tom Whiteside Chrysler Dodge Jeep Ram, near Columbus, OH, is hiring an FCA Technician.

• Sales more your game? S&P Global is looking for a Sales Executive-retail.

• SaaS company BizzyCar has put the call out for account executives in Los Angeles and Orlando (remote).

Looking to hire? Add your roles today—it’s 100% free.

Thanks for reading everyone.

— CDG