Three core reasons why Americans are not rushing to buy electric cars

Spread the love

By John Smit

Currently, major automakers around the world are developing and producing various styles of electric vehicles. Manufacturers and industry analysts believe that the electric vehicle market is huge and profitable. However, many American consumers are not eager to buy electric vehicles. There are three core reasons that prevent ordinary consumers from giving up fuel vehicles.

Since 2016, U.S. electric vehicle sales have continued to grow, from nearly 65,000 vehicles in 2017 to more than 800,000 vehicles in 2022. 

According to year-end data released by market research company Motor Intelligence this month, all- electric vehicles sold by automakers in the United States in 2022 will increase by 71% year-on-year, accounting for 5.8% of all vehicle sales, up from 3.2% in the same period in 2021. Subsequent data from the company showed that electric vehicle sales increased 51% in the first half of 2023, down from 65% in all of 2022 and 71% in the first half of last year.

Cox Automotive said the slowdown in electric vehicle sales is related to inventory backlog. The number of days of electric vehicle inventory has surged to 92 days in June, which is much higher than the 51 days for all models.

In April of this year, a poll conducted by the Associated Press Center for Public Affairs Research (NORC Center for Public Affairs Research) and the University of Chicago Energy Policy Institute showed that only 19% of American adults said it was “extremely likely” to get their next car. Or “very likely” to buy an electric car, 22% said “maybe” to buy an electric car. 47% responded that they would not buy an electric car as their next car. As for the current status of electric vehicle usage, the survey found that only 8% of respondents said they were driving electric vehicles at home, and another 8% said they were driving plug-in hybrid vehicles.

Read More :-   Master the BEV skill set: A comprehensive guide

Some dealers and executives said that the first wave of buyers willing to pay a premium for electric vehicles has already finished buying up, and manufacturers are facing a more hesitant consumer group.

However, Elizabeth Krear, vice president of JD Power’s electric vehicle practice, said this is not to say that Americans don’t want to buy electric vehicles.

“We survey more than 2,000 new car buyers each month to gauge their interest in electric vehicles,” she said.

So what are the core factors that keep American consumers from rushing to buy electric vehicles?

Too expensive to afford?

The main factor preventing Americans from buying electric vehicles is price. Even though the price of electric vehicles has dropped compared with before, and the U.S. government has introduced preferential tax credit policies, electric vehicles are still much more expensive than fuel vehicles. Coupled with U.S. interest rates at two-decade highs, the average consumer is deterred from expensive electric vehicles.

Read More :-   How Nissan Ariya is a genuine Tesla rival
Three core reasons why americans are not rushing to buy electric cars
Three core reasons why americans are not rushing to buy electric cars 4

Ashley Nunes, a senior fellow at Harvard Law School, told the BBC: “We looked at 13 years of electric vehicle prices in the United States, and in inflation-adjusted dollars, the average price of electric vehicles is rising, not decline.

That’s a big deal, Nunes said: If an everyday consumer looks at the price of an electric vehicle versus a gas-powered vehicle and sees the difference between $15,000 and $20,000 depending on the day, it’s easy to know what they’re going to choose. What type of car.

Buying an electric car in the U.S. can get a tax credit of up to $7,500. Some states also offer additional credits ranging from $1,000 to $7,500. Krell said these additional incentives appear to be a deciding factor in whether consumers are willing to buy: “Five of the 10 states with the highest adoption rates (electric vehicle usage) have state incentives.”

However, government incentives still cannot make the price of electric vehicles lower than that of fuel vehicles or within the range that ordinary consumers can afford. So currently most electric vehicles are purchased by high-income earners.

Dealers and analysts say that, especially with interest rates rising, the upfront cost remains too high for many consumers, who expect new car prices to be below $40,000.

Read More :-   Five key questions to consider before buying an electric car

In addition, although fuel vehicles require regular refueling and maintenance, the cost of electric vehicles is not low. In some states, electric vehicle registration costs more. Moreover, the batteries of electric vehicles are expensive, and if there is a problem, it will be a big expense.

Three core reasons why americans are not rushing to buy electric cars
Three core reasons why americans are not rushing to buy electric cars 5

The industry-wide average price of an electric vehicle in the U.S. was $50,683 in September, compared with $65,000 a year earlier, according to data from Cox Automotive.

Is it convenient to charge an electric car?

For many average Americans, charging an electric vehicle is much more difficult than refueling a gas-powered vehicle. Some people have installed charging devices at home and can charge their cars at night, but not every electric car owner has this condition.

“The problem is many Americans don’t even have a driveway,” Krell told the BBC. “One in three buyers can’t charge at home.”

Analysts agree that establishing comprehensive public charging pile facilities is one of the key factors for consumers to buy electric vehicles. In particular, the increase in fast-charging charging piles is more conducive to the sales of electric vehicles, because it can best reduce range anxiety and increase the willingness of car owners to switch to electric vehicles.


Spread the love

Leave a Comment