New research shows that electric vehicle ownership has declined 5% in the United States, equivalent to six million internet households, according to a Parks Associates’ consumer study.
The firm’s latest research, EV Charging at Home: User Demand and Preferences, included 8,000 U.S. internet households. It highlights that familiarity with EVs was up in pre-pandemic 2019, but has since decreased.
“Inflation and interest rates are up, and consumers perceive electric vehicles as expensive, challenging to charge outside the home, and limited in range,” said Daniel Holcomb, Senior Analyst at Parks Associates, in a statement. “With many car manufacturers scaling back ambitions on EV production, familiarity has dropped to 19%, a low not seen since 2018.”
At the same time, Holcomb said current EV and hybrid owners have the highest buying intentions when it comes to EVs, which he said indicates a “relatively flat growth rate for the near future.”
For example, 22% of EV owners plan to buy an EV and 14% of hybrid owners plan to buy an EV — but the latter segment is more likely to purchase a hybrid. And 3% of drivers who own an internal combustion engine vehicle plan to buy an EV.
As for industry players, Holcomb said they need to counter consumer perceptions and economic headwinds. “Our research shows key inhibitors are the perceived cost and lack of charging stations — 65% of consumers shopping for a vehicle cite at least one of three charging-related factors as a reason not to buy an EV.
He added that companies need to use aggressive strategies to bring in new customers, “with deals that account for the current economic climate, and with an expansion of available charging stations to ensure users have the convenience, accessibility, and peace of mind they want when buying a car.”
