Consumer reluctance towards electric vehicles (EVs) stems primarily from perceived high prices, with 48% of global respondents expressing concerns about the cost of EVs. Despite understanding the inherent price premium of most EVs, affordability remains a significant hurdle.
The affordability factor is not limited to the U.S. market; it resonates globally, affecting consumer decisions on EV adoption even in regions where EVs have gained substantial market share. The S&P Global Mobility survey highlights a universal concern over the impact on consumers’ wallets.
Over the last two years, consumer sentiment towards EVs has experienced significant fluctuations. While 2021 saw a surge in openness to EV adoption (86% global respondents), 2023 revealed a 19 percentage point decline, indicating a shift in consumer attitudes. Increased model choices and government support contributed to the initial rise.
Despite a broader range of EV models, price fatigue has set in due to rising interest rates and inventory shortages. Changes in the U.S. tax credit program, media reports on charging network reliability, and the shift towards leasing rather than purchasing have contributed to consumer acceptance dynamics.
Charging-related apprehensions, including concerns about the time required for charging (46%) and the availability of charging stations (44%), rank as significant factors hindering EV adoption. The survey indicates a shift in reasons cited against EV purchases from the previous year.
Owning an EV necessitates adjustments in routine, particularly for those making long journeys regularly. Factors such as reduced driving range and longer charging times contribute to consumer reluctance. Charging network concerns, once a secondary consideration, have now become a more prominent factor affecting EV decisions.
Examining the fluctuations in consumer interest over the past two years, exploring the impact of market maturity, changing government policies, and the entry of new mainstream EV models on buyer willingness.
Delving into the reasons behind price fatigue, the influence of rising interest rates, inventory shortages, and alterations in tax-credit programs, shaping the evolving landscape of consumer acceptance towards electric vehicles.
Analyzing the inherent challenges EV owners face regarding routine adjustments, driving range limitations, and the psychological impact of range anxiety on consumer decisions, going beyond the economic aspect of affordability.