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EV Consideration Falls Further

Study shows fewer shoppers are likely to buy one. J.D. Power says education on incentives could help win more over.

May 16, 2024
EV Consideration Falls Further

The study shows lesser reasons for reduced demand include lower fuel prices over the past year; inflation; high interest rates; and slowed growth in model availability.

Credit:

Pexels/Kindel Media

2 min to read


The percentage of consumers considering buying an electric vehicle fell over the past year for the first time in the four years of J.D. Power’s annual study.

The result comes as no surprise, since EV interest has been fading of late after the surge of early adopters, and automakers have reacted by scaling back production plans and targets of fully electric lineups to refocus on hybrids.

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The J.D. Power study, fielded from January through April, found that 24% of new-vehicle shoppers say they’re very likely to consider buying an EV, down from 26% a year earlier. Interest even fell among the youngest shoppers. Those who indicate they’re “overall likely” to consider buying one fell from 61% to 58%.

The top reasons for hesitancy remained the same: higher prices, concern about lack of public charger availability, and what J.D. Power describes as “lack of knowledge regarding the EV ownership proposition,” including incentives.

Educating consumers about available EV incentives can help convince more shoppers to buy one, Executive Director of EV Intelligence Stewart Stropp in a press release on the study results.

“As understanding of EV incentives rises, so does the likelihood of consideration. However, approximately 40% of shoppers say they do not have a solid understanding of such incentives. Prioritizing initiatives and efforts to educate consumers about the EV proposition—including available incentives and how they work—is vital to accelerating market growth.”

The study shows other reasons driving reduced demand include lower fuel prices over the past year; inflation; high interest rates; and “underwhelming growth in model availability.”

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“In previous years, the number of viable EVs that met shoppers’ needs increased substantially year over year,” Stropp said. “This year, it’s been more incremental. Several automakers have deferred EV launch and production plans and have shifted more focus toward hybrids and plug-in hybrids, so we’re seeing a lot of shoppers who still haven’t found an EV that checks all the boxes.”

DIG DEEPER: EVs Get More Affordable

Originally posted on Auto Dealer Today

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