Consumer demand for electric vehicles (EVs) has cooled this year in the U.S. as the industry faces a host of challenges. The number of new vehicle buyers in the U.S. considering an EV purchase this year has dropped to 24 percent from 26 percent in 2023. The J.D. Power 2024 U.S. Electric Vehicle Consideration (EVC) Study also reveals that the percentage of shoppers who say they are “overall likely” to consider purchasing an EV decreases to 58 percent from 61 percent in 2023.
Factors behind the decline
Stewart Stropp, executive director of EV intelligence at J.D., attributes this decline in the U.S. to a host of factors. This includes a continued shortage of affordable vehicles and charging concerns. Moreover, a lack of knowledge regarding the EV ownership proposition, including incentives, is another factor.
Stropp delves deeper into the reasons behind this decline. He revealed that around 40 percent of EV shoppers in the U.S. have no solid understanding of EV 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,” he added.
Other factors contributing to the decline in EV demand in the U.S. include lower year-over-year fuel prices. Due to the decline in fuel prices, the number of U.S. shoppers considering an EV, whose daily commute is 46-60 minutes, declined 13 percent in 2024 to 24 percent. Furthermore, stubborn inflation, high interest rates, and underwhelming growth in model availability are other discouraging factors.
Read: Affordable Tesla EVs coming in 2025
Younger generations consider EVs more
Among the younger generation, the lack of affordable EV models is impacting consideration. Despite the discouraging price tag, 24 percent of Gen Z and 32 percent of Gen Y shoppers say they are ‘very likely’ to consider an EV. Those are the two highest ratios among all generational cohorts.
Among U.S. shoppers who are not likely to consider an EV, 52 percent cited a lack of charging station availability as a reason for rejection, up 3 percent annually. Other reasons for rejection included:
- Purchase price
- Limited driving distance per charge
- Charging time
- Inability to charge at home or work
People looking to buy a second car were more likely to consider an EV (68 percent). Meanwhile, U.S. shoppers looking for their first car were less likely to consider an EV (47 percent). “Without a second vehicle, shoppers tend to be more critical of the logistics related to EV ownership,” stated the study.
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