According to recent research, hybrids, plug-in hybrids (PHEVs), and electric cars are gaining traction among potential car buyers in the United States. Approximately 50% of surveyed consumers revealed that they are considering purchasing one of these eco-friendly vehicles for their next car.
Increasing Ownership and Growing Interest
The study, which involved interviewing 2,012 consumers on their car shopping plans, found that 14% currently own a hybrid, PHEV, or electric car. This percentage has experienced a notable increase from 9% in 2021. However, an even larger proportion of consumers, amounting to 50%, have expressed interest in potentially buying one.
Variety of Options and Open-Mindedness
Despite the growing appeal of environmentally conscious vehicles, the report highlights that only a small percentage of respondents indicated a firm determination to purchase a “green vehicle.” Specifically, 7% said they would solely consider hybrids, while 5% favored electric vehicles exclusively. Moreover, a mere 2% restricted their options to PHEVs. It’s worth noting that plug-in hybrids enable travel on electric power alone for a certain distance before resorting to gasoline.
However, a significant number of respondents declared their willingness to explore these vehicle options if they proved suitable for their needs. Although the researchers inquired about all three types of cars, they placed particular emphasis on electric vehicles.
EV Sales: Steady Growth with Slower Pace
The data reveals that electric car sales in the United States are on an upward trajectory, albeit at a decelerated rate. In 2021, EVs accounted for 3.2% of all car sales. Subsequently, this figure rose to 5.8% in 2022, representing a market increase of 2.6%. The growth continued in 2023, with electric cars comprising 7.6% of total sales, albeit with a smaller growth rate of 1.8%.
Industry analysts from Kelley Blue Book parent company Cox Automotive anticipate that EV sales will exceed 10% in 2024. However, the slowed growth trend suggests that early adopters who were initially enthusiastic about electric vehicles have largely acquired them. As a result, automakers will need to appeal to a different cohort of consumers to drive further sales growth.
EV Considerers vs. Current EV Owners
A recent study conducted by GBK researchers sheds light on the demographic differences between existing electric vehicle (EV) owners and those who are considering purchasing an EV in the near future.
Urban vs. Rural Divide
Sixty-four percent of current EV owners reside in urban areas, while only 38% of potential EV buyers are based in these metropolitan regions. This discrepancy can be attributed to the slower development of EV infrastructure in non-urban areas.
Early Adopters vs. Skeptics
When it comes to embracing new technologies, 58% of current EV owners identify themselves as early adopters. However, this figure drops to just 32% among those considering purchasing an EV. This suggests that individuals who are more inclined to overcome the challenges associated with owning cutting-edge technology have already made the transition to EVs. The next wave of potential buyers, on the other hand, are more skeptical and would require reassurances or solutions to any obstacles they might face.
Price Point Matters
To attract a new cohort of buyers, automakers need to bring down the prices of EVs. Current EV owners had a median budget of $59,000 for their next vehicle, whereas prospective buyers have set their spending limit at an average of $50,000. Although the average price of an EV fell by nearly 20% in 2023, it has yet to meet the desired figure. As of December, the average price paid by EV buyers was $50,798.
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Traditional Automakers and Market Demand
The next wave of potential buyers is particularly interested in established automakers offering a substantial range of EVs. Among EV considerers, a majority expressed their willingness to purchase a Toyota EV over any other brand. However, Toyota has been slow in fully embracing the EV trend and currently only offers one EV model – the compact bZ4X SUV, which remains a rare sight in dealership lots.
This story originally ran on KBB.com.
