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Is the EV Hype Waning?

June 10, 2024 by Owen Gallagher


AAA Survey Reveals Declining Consumer Interest in Electric Vehicles

Concerns about the purchase price of new vehicles, range anxiety, and the lack of convenient fast charging options are dampening consumer enthusiasm for electric vehicles (EVs), according to the latest annual AAA consumer survey on EVs.

The survey indicates a decline in the likelihood of purchasing a new EV among U.S. adults, with only 18% stating they are “very likely” or “likely” to buy one, down from 23% last year. Conversely, 63% reported they were “unlikely or very unlikely” to consider an EV for their next car.

“Now that EVs have been on the market for several years, early adopters and enthusiasts already have one,” said Mark Schieldrop, Senior Spokesperson, AAA Northeast. “The remaining consumers who haven’t already adopted EVs view the current cost, convenience, and ownership experience as significant hurdles to making the jump right now.”

Key Barriers to EV Adoption

The survey highlighted several factors contributing to the hesitation toward EVs:

  • High Purchase Prices: 60% of respondents cited the higher cost of buying an EV as a major barrier.
  • Battery Repair or Replacement Costs: 57% were concerned about the expenses associated with battery maintenance.
  • Lack of Convenient Charging Options: 54% noted the scarcity of fast charging stations as a deterrent.
  • Range Anxiety: 53% worried about the limited range of EVs.

Additionally, 30% mentioned the inability to install a charging station where they live, such as in apartments or condominiums.

Near-Term Ceiling for EV Adoption

The survey results suggest that EV adoption could be nearing a near-term ceiling. However, interest in hybrid vehicles is on the rise, with nearly a third of respondents indicating they are “very likely” or “likely” to purchase a hybrid for their next vehicle. Hybrids offer many benefits of fully electric vehicles while alleviating concerns about range and charging infrastructure. Three-quarters of respondents believe hybrids are more suitable for long-distance travel compared to EVs. Other benefits highlighted include:

  • Not dependent on public charging stations: 74%
  • No range anxiety: 65%
  • No need for home charging station installation: 54%
  • Lower purchase prices: 53%

“Consumers want more efficient and sustainable vehicles, but deciding to take the leap to an EV can seem like a daunting lifestyle change,” Schieldrop said. “A hybrid vehicle, particularly plug-in hybrids, can bridge the gap. People like the idea of commuting to work or driving around town on battery power without changing their driving and refueling habits for longer road trips.”

Global Trends and Remaining Interest

Despite declining American interest in EVs, fully electric vehicles continue to gain market share globally. The International Energy Agency reported a 35% increase in global electric car sales in 2023 compared to 2022. EVs offer certain advantages over gas-powered and hybrid vehicles. Survey respondents expressed interest in EVs for the following reasons:

  • Savings on gas: 65%
  • Environmental benefits: 63%
  • Rebates and incentives: 60% found federal and state discount programs appealing.

While the hype around EVs may be waning in the U.S., hybrids are emerging as a popular alternative, offering a balance between sustainability and practicality. As the market evolves, consumer preferences and technological advancements will continue to shape the future of the automotive industry.

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