EV Market Continued to Evolve in Q2
Most EV buyers still holding onto gas-powered models, and most purchased EVs are in the luxury segment.

The ownership cost disparity between luxury and mass-market EVs and gas-powered models can be stark, according to a J.D. Power report.
IMAGE: Pixabay/LeeRosario
Two reports shed new light on the evolving electric-vehicle market, one pointing up the relative affordability versus gas-powered models between the premium and mass-market corners of the industry.
A second-quarter Experian report shows that EV adoption is growing, EV models making up 7.5% of U.S. new vehicle registrations, up from 5.7% year-over-year to 2.7 million.
But consumers who take the EV plunge still aren’t all-in. The report shows they tend to keep a gas-powered model in their back pockets, er, their garages, that is. It says a whopping 85% of EV buyers have both, likely due to limited charging infrastructure in many areas.
“As the infrastructure continues to develop, understanding consumers’ needs will enable automotive professionals to better assist them when finding something that fits their lifestyle,” said Kirsten Von Busch, Experian director of product marketing for automotive.
Affordability is another concern when it comes to switching from gas-powered vehicles. Tesla still dominates the EV market, with four of the five leading luxury EV models – and in fact, luxury models in general made up 77% of the U.S. EV market.
The ownership cost disparity between EV and gas-powered models can be stark and is likely hampering adoption. A new J.D. Power report shows that the average U.S. premium vehicle consumer pays 0.4% more for an EV than a comparable gas-powered model while the average mass-market buyer pays 18% more for an EV. It points out that the gap is significant when it comes EV adoption, which can be achieved only if automakers tap deeper into the mass market.
When cost of ownership over time is taken into consideration, the gap appears starker pocketbook-wise. Over five years, J.D. Power says premium compact EV sports-utility vehicle owners on average pay just $287 more than they would for a comparable gas-powered model, or a total of nearly $72,000. For a mass-market compact EV SUV, the difference is more than $9,000, or $60,736 total.
The gaps widen further when one compares the most affordable EVs in the two market segments and when leasing an EV, J.D. Power says.
A sign that the cost imbalance may be turning is the coming debut of the Chevrolet Equinox compact electric SUV, which J.D. Power says should be more comparable to a similar gas-powered model. It says the Equinox will reportedly have a $40,000 starting price and a later base-trim price of $30,000, making it in line with gas-powered compact SUVs.
Originally posted on Auto Dealer Today
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →