With the growth rate of electric vehicle sales in the United States slowing down, a recent survey indicates that consumers’ expectations for electric cars are not being met, leading to a disconnect between consumer expectations and the market reality. This situation poses a greater challenge for the development of the electric vehicle industry.
In the first quarter of this year, while overall new car sales in the US showed a significant increase, the growth in electric car sales slowed down. Even in California, where electric cars have been popular, the sales of electric vehicles are not as brisk as before. Some car manufacturers have even announced production cuts or delays in the release of new electric car models.
Automotive consulting firm Edmunds stated that in the past few years, disruptions in the supply chain, concerns about the lifespan of electric car batteries, consumers’ worries about the range of electric vehicles, and setbacks in charging infrastructure have hindered the progress of the electric car market.
The company’s latest survey among American car consumers conducted in January 2024 revealed that key factors consumers consider when purchasing electric vehicles, such as price, brand trustworthiness, vehicle type, and range, are significantly misaligned between consumer expectations and the available vehicles on the market.
According to Edmunds, 47% of consumers interested in buying electric cars are looking for vehicles priced below $40,000, with 22% showing more interest in electric cars priced below $30,000.
However, currently, there is not a single new electric car with an average recommended retail price below $30,000, and there are only four new electric cars priced below $40,000 available in the market.
Based on Edmunds’ data, the average transaction price of electric cars in 2023 stood at $61,702, whereas the average transaction price for all other vehicle types was $47,450. It is noteworthy that the consumers most willing to purchase new electric cars do not necessarily have the corresponding financial means.
Consumers interested in purchasing electric cars also have varying preferences regarding vehicle types. The survey found that 43% of consumers prefer sedan models, 42% would consider purchasing SUVs and crossover electric vehicles, while only 10% would consider buying electric pickup trucks.
However, the current electric pickup truck market is overly crowded. Jessica Caldwell, the industry analysis director at Edmunds, pointed out that, at least for now, electric pickup trucks still remain a niche product with limited consumer base.
When it comes to choosing electric car brands, what do consumers want? Edmunds’ survey results showed that Tesla remains the most trusted electric car brand among American consumers, followed by BMW, Toyota, and Honda.
In reality, Toyota only offers one electric car in the US market, and Honda only began selling its first all-electric car in March of this year. On the other hand, despite Hyundai and Kia gaining a solid electric vehicle market share through powerful new products, Caldwell noted that, “They did not receive the same level of recognition from consumers in our survey.”
Lastly, concerning the range of electric vehicles, Edmunds found that due to not having directly experienced using electric cars, most surveyed consumers may have a cognitive gap regarding the actual range. This has led to some consumers being willing to accept a range of only 100 miles.
Edmunds believes that the electric vehicle market is growing, but consumer reservations about the current choices available on the market and challenges related to charging infrastructure are limiting more significant growth in the short term.
In addition to the challenges mentioned above, electric vehicles still struggle to attract the mainstream market. This situation has made hybrid vehicles an excellent choice for consumers who are not yet ready to buy pure electric cars but want to save on fuel costs. The new car sales data also seems to confirm this point.