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EY Mobility Consumer Index research shows US consumers less likely to purchase an EV than last year and compared to global counterparts


However, an increase in interest for hybrid vehicles shows a new pathway to EV adoption

NEW YORK, Sept. 9, 2024 /PRNewswire/ -- The fifth iteration of the EY Mobility Consumer Index (MCI), a global survey of almost 20,000 consumers from 28 countries, found that despite record US consumer interest in electric vehicles (EVs) in 2023, only 34% of US consumers intend to purchase an EV as their next car in 2024. This marks a 14 point decrease since the 2023 MCI findings, proving that EV education is not where it needs to be and barriers to mass EV adoption still exist.

"While we've seen substantial increases in interest and purchasing of EVs since 2020, this year shows a dip in demand."

"While we've seen substantial increases in interest and purchasing of EVs since 2020, this year's MCI shows dips in demand for the first time," said Steve Patton, EY Americas Automotive Leader. "This decrease is due partly to a lack of consumer education around the long-term value of an EV and maintenance requirements vs. traditional ICE (internal combustion engine) vehicles."

Consumer confidence in infrastructure builds, yet concerns about battery maintenance and value fall short

In the last year, consumer confidence in both EV range and charging infrastructure has risen, due in large part to cross-sector collaboration and investments in both education and charging stations. In 2023, MCI findings revealed that 30% of US car buyers were concerned about EVs' limited range. This year, only 24% of US car buyers felt the limited range of EVs was a top concern. What's more, the lack of charging stations is less of a worry than it once was. In 2022, MCI noted that 34% of US buyers were concerned about finding charging stations ? that number was 23% in 2024, representing an 11 percentage-point decrease.

That said, confidence in EV range and charging infrastructure has been overshadowed lately by US consumers' increasing concerns about battery life and maintenance fees. Expensive battery replacement was the top deterrent to purchase an EV for US consumers, overtaking lack of charging stations for the first time. This is especially true for potential first-time EV buyers, as 27% noted concerns about expensive batteries compared to 23% of current EV owners.

"Over the last five years, we've seen tremendous progress around easing the barriers for EV adoption, from curbing reliability and accessibility concerns to instilling charging confidence among US consumers," said Marc Coltelli, EY Americas Power & Utilities eMobility Leader. "To keep momentum and make EV ownership appealing, it's imperative to educate and create a seamless customer experience from the dealership to the charge point, throughout the ecosystem and lifecycle of an EV. Now, US consumers are expressing heightened concerns over maintenance and battery replacement costs, when really it costs less to maintain an EV compared to ICE vehicles."

Hybrid vehicles prove transitional bridge may be necessary

While EV demand has decreased, interestingly, hybrid vehicles have risen in popularity. In 2024, the share of US consumers intending to buy a hybrid vehicle as their next car rose 2 percentage points, compared to the global average, which decreased 2 points overall.

This rise can be attributed to the overall versatility of hybrid vehicles. In fact, 21% of US consumers say they prefer a gradual transition from an ICE vehicle to a fully electric vehicle. What's more, 26% of US buyers like the security that comes with a hybrid engine (compared to only 19% of global respondents). This shows that optionality is key, and hybrids are stepping in for EVs as a bridge vehicle for those interested but not yet willing to give up the comfort of owning an ICE.

"It's no surprise that hybrid vehicles are rising in popularity, especially with many potential EV buyers pointing to environmental concerns as their motivation to purchase," said Raman Ram, EY Americas Aerospace, Defense and Mobility Leader. "With many still hesitant to go all in with EVs, hybrids offer an 'easier-to-swallow' solution: the security of ICE with the advancements of EV technology and performance. For those who are looking to transition due to the environment, hybrids allow owners to lessen their reliance on fuel and creates options for batteries and parts. For many, it's a win-win."

EVs are leading the future of tech-enabled driving

Despite decreased demand, automakers have long used EVs in the transition to more connected vehicles. And now, as clear leaders in tech-enabled driving, US consumers expect EVs to have connected service options. For the majority (57%) of US consumers, navigation features are the top feature used when connecting a car to the internet, and a further 45% would pay for navigation services, proving technology enablement has become a basic necessity for potential car buyers. Another need for the majority (56%) of US consumers is safety measures, while almost half (46%) would use connected services for maintenance requests and service updates.

However, EV owners do feel pain points with the transition to connected cars. Almost half (47%) note high price points for additional services are concerning, with an additional 36% noting most services can be found on their smartphones.

While the road for consumers to become fully electric is bumpy, and as demand ebbs and flows, education and creating hybrid options will be key to the progression of mass EV adoption.

For more information, visit https://www.ey.com/en_us/services/mobility.

About EY

EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.

About the EY Mobility Consumer Index

Launched in 2020, the EY Mobility Consumer Index (MCI) is an annual study that gauges car buying intent; analyzes the pace of shift toward the adoption of electric vehicles, challenges in charging infrastructure and interest toward connected features; and assess the consumers' car buying journey. The MCI 2024 uncovers insights from 19,000 respondents in 28 countries. The US-specific findings account for 1,500 respondents. The latest edition also addresses pressing uncertainties confronting the EV future, namely:

Elizabeth Feigenbaum
EY US Media Relations
[email protected] 

SOURCE EY


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