Cost misconceptions may be behind waning EV interest



Shopper curiosity in EVs is lagging, and value is partly responsible, in keeping with a new Ipsos study.

Regardless of elements like elevated selection of EV fashions and a revamped federal tax credit score ushered in by the Inflation Discount Act (IRA), curiosity in EVs has primarily leveled off, the examine suggests.

In 2022, 49% of respondents stated they have been contemplating an EV for his or her subsequent car buy, up from 36% in 2021. However for 2023 the variety of EV intenders held regular at 48%. Analysts additionally famous a year-over-year lower in EV consideration amongst youthful consumers—the age group considered most concerned with EVs.

Considerations about EV possession (from 2023 Ipsos examine)


Most of the considerations expressed by respondents that have been holding them again from an EV buy have been cost-related. Battery life was the highest concern, adopted by recharging time, driving vary, battery pack substitute value, and affordability. The latter ranked simply above lack of public charging stations—a typical concern in these surveys.

Slightly below charging availability was increased value of total possession, which Ipsos described as a persistent fable amongst shoppers. Solely 35% of total automotive consumers agreed that EVs have a decrease value of possession than internal-combustion automobiles, the examine discovered, though this elevated to 55% for EV considerers.

But the common value of sustaining an EV is $9,048 per 12 months, in comparison with the $10,728 business common, analysts famous, citing AAA’s annual value of possession report. Different research have discovered that ownership-cost benefits are even stronger for trucks and SUVs.

2023 Nissan Ariya e-4orce

2023 Nissan Ariya e-4orce

The Zero Emission Transportation Affiliation (ZETA) claimed in 2022 that gas vehicles cost up to six times more to drive than EVs. The higher gas prices of the previous couple of years have helped strengthen the benefit—though higher utility costs, notably within the Northeast, have reeled that in considerably.

“With out correct seller training, consumers will falsely imagine they have to undergo increased up-front and ongoing prices to change to BEVs,” Ipsos analysts concluded.

Certainly, the necessity for training can’t be understated. Points which have been poorly communicated by automakers and the federal government alike, like confusion over the EV tax credit price cap for SUVs might have performed an element in shopper considerations. Even concerns over range anxiety subside after house owners get to know a car, a earlier survey discovered.


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