According to a recent survey by McKinsey, nearly 30% of electric vehicle owners worldwide may consider switching back to gasoline cars. In the United States, hybrid cars are very popular, with the number of plug-in hybrid models doubling.
The McKinsey survey indicates that 29% of global electric car owners are “very likely” or “likely” to switch back to gasoline cars. In the United States, this figure rises to 46%, indicating that Americans may be more nostalgic for the era of gasoline cars.
In addition to McKinsey’s data, a recent Gallup poll also found that in the United States, the number of non-electric car owners considering purchasing electric vehicles has decreased from 43% in 2023 to 35% in 2024. The percentage of American adults who do not plan to buy electric vehicles has increased from 41% to 48%.
It should be noted that although consumer demand for electric vehicles is not as high as expected, analysts generally believe that sales of electric vehicles will continue to increase in the coming years.
Currently, major car manufacturers General Motors and Ford have seen a growth in electric vehicle sales, but they have lowered their growth expectations. Marin Gjaja, Chief Operating Officer of Ford’s electric vehicle division, said: “What we saw in 2021 and 2022 was a temporary market peak, where demand for electric vehicles took off. Demand is still increasing, but it is far from meeting our expectations.”
Tesla remains a leader in the electric vehicle industry, but its electric car sales have been declining and prices are being significantly reduced.
Why are car owners considering switching back to gasoline cars? There are three main reasons.
Firstly, pricing. In the United States, despite the decrease in electric car prices and tax incentives or subsidies, electric cars are still significantly more expensive than gasoline cars, with a price difference of about $15,000 to $20,000. In Europe, subsidies for purchasing electric cars are also starting to be reduced. Additionally, maintenance costs and consumables for electric cars are more expensive.
Secondly, inadequate charging infrastructure. Car owners in various countries generally believe that there is insufficient charging station infrastructure, which may lead to anxiety about running out of power while driving. Few car owners have the means to set up their own charging equipment and may not have the ability to charge at home.
Thirdly, inadequate battery life and long charging times. For high-end models, battery technology upgrades have increased the driving range of electric cars, but for most commonly used models, the common feedback is that battery life is still insufficient.
Analysts from car research companies Edmunds and iSeeCars point out that general electric vehicle owners are more dissatisfied with issues such as charging, driving range, and battery degradation, but luxury electric car buyers have their own home charging systems and typically drive less than 100 miles a day, resulting in higher satisfaction with electric cars.
iSeeCars analyst Karl Brauer emphasized that with battery upgrades, improvements in charging infrastructure, and reductions in electric car prices, the outlook for electric vehicle sales should improve, “but we don’t know when these issues will be resolved.”
Research from Cox Automotive shows a 59% year-over-year increase in sales of hybrid cars in the first quarter of this year, although their market share remains small, it has roughly doubled since 2022, reaching 2.4%.
Edmunds data shows that since 2019, sales of plug-in hybrid electric vehicles in the United States have nearly doubled, reaching 47 models. These include well-known brands such as Toyota RAV4 and Ford Escape crossover SUVs.
The Environmental Protection Agency (EPA) set new emission standards in March aiming to reduce carbon emissions from 2027 to 2032. The EPA has stated that hybrid cars may play a bigger role in reducing carbon emissions than initially expected.
Dealerships say that with policy support from car manufacturers and the federal government, plug-in hybrid electric cars may become a more affordable option.
Renowned car manufacturer Stellantis (parent company of Jeep, Ram, Dodge, and Chrysler) faced hefty fines in the past for failing to meet U.S. government emission standards. To comply with the law, Stellantis is leaning towards starting to sell hybrid cars.
David Christ, Vice President of Toyota North America, mentioned that due to EPA regulations, Toyota will expand its lineup of hybrid cars.
Lyndon Lie, Executive Vice President of Volkswagen Group of America, the U.S. subsidiary of German automotive giant Volkswagen, stated that they are considering selling hybrid cars as customers are more receptive to this type of vehicle, which can increase revenue.