EV Demand Cools

By Staff Writer May 20, 2024

Consumer demand for electric vehicles has cooled as the industry grapples with persistent growing pains, according to the J.D. Power 2024 U.S. Electric Vehicle Consideration Study, released last week. For the first time since the study’s inception in 2021, new-vehicle buyer consideration has dropped from the previous year. This year’s study reveals that 24% of shoppers say they are “very likely” to consider purchasing an EV, down from 26% a year ago, while the percentage of shoppers who say they are “overall likely” to consider purchasing an EV decreases to 58% from 61% in 2023.

“As the industry inches toward mass consumer adoption, the main roadblocks to getting consumers behind the wheel of an EV are the continued shortage of affordable vehicles, charging concerns and a lack of knowledge regarding the EV ownership proposition, including incentives,” said Stewart Stropp, executive director of EV intelligence at J.D. Power. “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.”

Other factors contributing to waning EV demand include lower year-over-year fuel prices; stubborn inflation and high interest rates; and underwhelming growth in model availability. “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.”

Rate this item
(0 votes)
Last modified on Saturday, 25 May 2024 12:39