JD Power EV Survey Suggests 2024 Is the Year Buyers Start to Lose Interest

According to a pair of new surveys, consumers are less likely than a year ago to consider purchasing an electric vehicle for their next vehicle.

For the first time

New vehicle buyer consideration for all-electric vehicles fell from the prior year for the first time since the start of the JD Power U.S. Electric Vehicle Consideration Survey in 2021.

Based on 2024 results, 24% of respondents are “very likely” to consider purchasing an electric vehicle, up from 26% a year ago. And 58% of respondents said they were “generally likely” to consider one, up from 61%.

The results reflect “lingering growing pains” in the electric vehicle market, according to JD Power. They are the latest sign that lingering concerns about affordability, a lack of new models on the market and battery range are holding back the adoption of electric vehicles.

Stewart Stropp, executive director of electric vehicle intelligence at JD Power, noted in a press release that about 40% of car buyers said they don’t have a “solid understanding” of the incentives available for purchasing electric vehicles: “Prioritizing initiatives and efforts to educate consumers about the electric vehicle proposition, including the incentives available and how they work, is vital to accelerating market growth.”

Stropp also noted that many automakers have delayed EV launches and shifted to hybrids, which could limit the availability of EV models that match what car buyers are looking for.

The survey also found:

  • Consideration of electric vehicles among younger buyers is declining. The percentage of Generations Z and Y buyers who said they are “very likely” to consider an electric vehicle fell two and five percentage points, respectively, year-over-year.
  • Consideration is declining among drivers with longer commutes. Consideration of electric vehicles among buyers whose daily commute is between 46 and 60 minutes each way fell 13 percentage points from 2023, reversing a trend of drivers with longer commutes being more likely to consider an electric car. The report points to falling fuel prices and concerns about charging to explain this trend.
  • Charging issues remain a major concern. The top five reasons consumers cite for not considering an electric vehicle are “primarily related to charging,” according to JD Power.

Yes, but

Another recent study suggests that buyers could be more enthusiastic about electric vehicles in a few years.

“A significant second wave of buyers ready to consider purchasing an electric vehicle is poised to begin entering the market in the second half of the decade,” according to a May 14 press release announcing the Road Study. towards electric vehicle adoption in 2024 from Cox Automotive.

Cox also found a drop in consideration of electric vehicles among car buyers: Only 45% of consumers who are in the market for a new vehicle next year said they are considering an electric vehicle, down from 51% of the last year. Cox’s report also noted concerns about affordability and fees.

However, Cox analysts expect 54% of “skeptics” (or “buyers who are only considering vehicles powered by traditional internal combustion engines”) to begin considering an electric vehicle within three to five years and that 80% are “ready to consider an electric vehicle.” within the next 10 years.

“While we have seen slow growth in EV sales and a drop in consideration, we believe this is part of a normal growth curve and not the end of the story,” said Isabelle Helms, vice president of research and intelligence. Cox’s market leader, in a press release. . “We remain optimistic about the long-term future of electric vehicle sales in the United States, as many skeptics today will carefully consider an electric vehicle by the end of the decade.”

This report was initially published by Tech Brew.

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