New vehicle buyer consideration for electric vehicles in the United States has declined from the previous year, according to J.D. Power’s 2024 U.S. Electric Vehicle Consideration (EVC) Study.
The decline is a first since the study’s 2021 inception. J.D. Power said consumer demand has cooled as the industry struggles with growing pains. Now only 24% of shoppers said they are “very likely” to consider buying an EV — down from 26% a year ago. Furthermore, the percentage of consumers who are “overall likely” to consider buying an EV dropped to 58% from 61% in 2023.
“As the industry inches toward mass consumer adoption, the main roadblocks to getting consumers behind the wheel of an EV are the continued shortage of affordable vehicles, charging concerns, and a lack of knowledge regarding the EV ownership proposition — including incentives,” said Stewart Stropp, Executive Director of EV intelligence at J.D. Power, in a statement.
He added that, as knowledge around EV incentives increases, so too will the likelihood of consideration. However, Stropp also noted that around 40% of EV shoppers said they do not have a solid understanding of this type of incentive.
“Prioritizing initiatives and efforts to educate consumers about the EV proposition — including available incentives and how they work — is vital to accelerating market growth,” he said.
Other factors blocking the way to greater EV adoption include lower year-over-year fuel prices, stubborn inflation and high interest rates, and issues around model availability.
“In previous years, the number of viable EVs that met shoppers’ needs increased substantially year-over-year,” said Stropp. “This year, it’s been more incremental. Several automakers have deferred EV launch and production plans and have shifted more focus toward hybrids and plug-in hybrids, so we’re seeing a lot of shoppers who still haven’t found an EV that checks all the boxes.”
