As the growth rate of electric vehicle sales in the United States slows down, the latest survey shows that consumers’ expectations for electric cars have not been met, and even appear to be disconnected from market reality, making the development of the electric vehicle industry more challenging.
In the first quarter of this year, new car sales in the United States have shown significant growth, but the sales growth of electric vehicles has slowed down. Even in California, where electric cars used to sell well, the pace of electric car sales is not as strong as before. Some car manufacturers have also announced production cuts or delays in new electric car models.
Automotive consulting company Edmunds stated that in the past few years, disruptions in the supply chain, issues with electric car battery life, consumer concerns about the range of electric cars, and frustrations with charging infrastructure have hindered the advancement of the electric car market.
The company’s latest survey conducted in January 2024 among American car consumers revealed that the key considerations consumers have when purchasing electric cars, such as price, brand trustworthiness, vehicle type, and range, show a significant gap compared to the available vehicles in the market.
The Edmunds survey found that 47% of consumers interested in purchasing electric cars prefer a price below $40,000, with 22% showing more interest in electric cars priced below $30,000.
However, the reality is that currently, there is not a single new electric car with a suggested retail price averaging below $30,000, and there are only four new electric cars below $40,000.
According to Edmunds data, the average transaction price for electric cars in 2023 was $61,702, while the average transaction price for all other vehicle types was $47,450. It is worth noting that the consumers most willing to buy new electric cars do not necessarily have matching financial capabilities.
Consumers interested in purchasing electric cars also have different preferences for vehicle types. The survey found that 43% prefer sedan models, 42% would consider purchasing SUVs and crossover electric cars, while only 10% would consider buying electric trucks.
However, the current electric truck market is oversaturated. Jessica Caldwell, Director of Industry Analysis at Edmunds, stated that electric trucks still seem to be a niche product to a large extent, with limited consumer base.
When it comes to choosing electric car brands, what do consumers want? The survey results from Edmunds show that Tesla remains the most trusted electric car brand among American consumers, followed by BMW, with Toyota and Honda close behind.
In reality, Toyota has only one electric car model in the American market, and Honda only started selling its first all-electric car in March of this year. On the other hand, although Hyundai and Kia have garnered a solid market share in the electric vehicle market with powerful new products, Caldwell noted: “They haven’t received the same level of recognition from consumers in our survey.”
Lastly, regarding the range of electric cars, Edmunds found that most survey participants have not yet used electric cars formally, leading to potential discrepancies in their understanding of actual range capabilities. This has resulted in some consumers being willing to accept a range within 100 miles.
Edmunds believes that the electric vehicle market is growing, but consumer reservations about the current market choices and charging infrastructure challenges are limiting more significant growth in the short term.
In addition to the aforementioned challenges, electric vehicles still struggle to attract the mainstream market. This also makes hybrid cars an excellent choice for consumers who are not yet ready to purchase electric cars and want to save on fuel costs. New car sales data also seem to confirm this notion.