Misconceptions about cost could be the cause of declining interest in electric vehicles
Consumer interest in electric vehicles is lagging, and cost is part of the reason, according to a new study by Ipsos.
The study found that, despite factors such as the growing choice of electric vehicle models and the federal tax credits modified under the Inflation Reduction Act (IRA), interest in electric vehicles in terms of version has stalled.
In 2022, 49% of respondents said they were considering buying an electric vehicle for their next purchase, up from 36% in 2021. But by 2023, the number of people intending to buy an electric car will hold steady at level 48%. Analysts also note that consideration for EVs among younger buyers has decreased every year — the age group said to be most interested in EVs.
Concerns about electric vehicle ownership (from 2023 Ipsos study)
Many of the respondents expressed concerns that keep them from buying electric vehicles related to cost. Battery life is a top concern, followed by recharge time, driving range, battery pack replacement cost, and affordability. The latter ranks right above the lack of public charging stations — a common concern in these surveys.
Just below charging availability is a higher overall cost of ownership, which Ipsos describes as a persistent myth among consumers. The study found that only 35% of total car buyers agree that electric vehicles have a lower cost of ownership than internal combustion vehicles, although that percentage has increased to 55% for those considering electric vehicles.
However, the analysts note, citing AAA’s annual cost of ownership report, the average cost to maintain an EV is $9,048 per year, compared with the industry average of $10,728 la. Other studies have found that the cost of ownership advantage is even more powerful for trucks and SUVs.
Nissan Ariya e-4orce 2023
Zero Emissions Transport Association (ZETA) stated in 2022 that Gasoline cars are six times more expensive to drive than EVs. The higher gas prices over the past few years has helped cement the edge – though higher utility costsespecially in the Northeast, have been somewhat reeling from that.
Without proper dealer training, buyers mistakenly believe they incur higher upfront and ongoing costs to switch to BEVs, the Ipsos analysts conclude.
Indeed, the need for education cannot be underestimated. Issues have been poorly communicated by automakers and governments, such as confusion about electric vehicle tax credit price limit for SUVs may have played a part in shoppers’ concerns. Even worry about the range of anxiety down after the owner learned about a vehicle, an earlier survey found.
