JD Power’s EV survey suggests 2024 is the year that buyers just start losing their interest
Consumers are less likely than they were a year ago to consider buying an EV for their next vehicle, according to a pair of new surveys.
First up
New-vehicle buyer consideration for fully electric vehicles fell from the previous year for the first time since the start of J.D. Power’s US Electric Vehicle Consideration Survey in 2021.
According to the 2024 results, 24% of respondents are “very likely” to consider buying an EV, compared to 26% a year ago. And 58% of respondents said they are “overall likely” to consider one, down from 61%.
The results reflect “persistent growing pains” in the EV market, according to J.D. Power. They’re the latest sign that nagging concerns about affordability, a lack of new models on the market, and battery range are holding back EV adoption.
Stewart Stropp, executive director of EV intelligence at J.D. Power, noted in a press release that some 40% of car shoppers said they don’t have a “solid understanding” of incentives available for EV purchases: “Prioritizing initiatives and efforts to educate consumers about the EV proposition—including available incentives and how they work—is vital to accelerating market growth.”
Stropp noted, too, that many automakers have delayed EV launches and pivoted to hybrids, potentially limiting the availability of EV models that match what car buyers are looking for.
The survey also found:
- EV consideration among younger buyers is dropping. The percentage of Gen Z and and Gen Y buyers who said they are “very likely” to consider an EV fell two and five percentage points, respectively, YoY.
- Consideration is falling among drivers with longer commutes. EV consideration among shoppers whose daily commute is between 46 and 60 minutes each way fell 13 percentage points from 2023, reversing a trend of drivers with longer commutes being more likely to consider an electric car. The report points to falling fuel prices and charging concerns to explain this trend.
- Charging issues remain a major concern. The top-five reasons consumers cited in not considering an EV are “mostly related to charging,” according to J.D. Power.
Yes, but
Another recent study suggests that buyers might be more enthusiastic about EVs in a few years.
“A second, significant wave of shoppers ready to consider buying an electric vehicle is poised to begin entering the market in the second half of the decade,” per a May 14 press release announcing Cox Automotive’s 2024 Path to EV Adoption Study.
Cox also found a dropoff in EV consideration among car shoppers: Only 45% of consumers who are in the market for a new vehicle in the next year said they are considering an EV, down from 51% last year. Cox’s report also noted affordability and charging concerns.
However, Cox analysts expect 54% of “skeptics”—or “shoppers who are only considering vehicles powered by traditional internal combustion engines”— to start considering an EV within three to five years and 80% to be “ready to consider an EV” within the next 10 years.
“While we’ve seen EV sales growth slow and consideration dip, we believe this is part of a normal growth curve and not the end of the story,” Isabelle Helms, VP of research and market intelligence at Cox, said in a press release. “We remain bullish on the long-term future of EV sales in America, as many skeptics today will be carefully considering an EV by the end of the decade.”
This report was initially published by Tech Brew.
