Cooling Electric Vehicle Enthusiasm... US Consumer Purchase Plans Drop from 48% to 34%

Hybrid Popularity ↑... "Win-Win Choice"

American consumers' intention to purchase electric vehicles has decreased compared to last year.

On the 9th (local time), consulting firm EY announced that according to the Mobility Consumer Index (MCI) survey, only 34% of American consumers plan to purchase an electric vehicle (fully electric, plug-in hybrid, or hybrid) as their next car.

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This is a significant drop from last year's survey, where 48% of consumers said they would buy an electric vehicle as their next car.

In particular, the percentage of consumers intending to purchase a fully electric vehicle dropped sharply from 22% last year to 11% this year.

Steve Patten, EY Americas Automotive Leader, said, "Interest in and purchases of electric vehicles have increased significantly since 2020, but this year's survey shows a decline in demand for the first time."

EY analyzed that the decline in demand is due to consumers' low understanding of the long-term benefits of electric vehicles compared to internal combustion engine vehicles and their maintenance. However, concerns about electric vehicle driving range and charging infrastructure have decreased by 6 percentage points and 11 percentage points respectively from the previous year, with 24% and 23% of consumers expressing concern.

Although the intention to purchase electric vehicles has decreased, hybrid vehicles remain popular. The proportion of American consumers planning to buy a hybrid vehicle as their next car was 26%. In contrast, only 19% of global consumers surveyed said they were considering purchasing a hybrid.

Raman Ram, EY Americas Aerospace, Defense, and Mobility Leader, said, "For consumers considering electric vehicles due to environmental reasons, hybrids reduce dependence on oil and provide options for batteries and parts," adding, "It's a 'win-win' for many people."

In fact, hybrid sales, especially plug-in hybrids, have been increasing recently in the U.S. market. According to Cox Automotive, plug-in hybrid sales in the U.S. in the first quarter of this year rose 59% compared to the previous year. GM CEO Mary Barra stated in an interview with Bloomberg earlier this year that hybrid vehicles would be added to key segments.

Yahoo Finance reported, "Automakers like Ford and Toyota have announced a surge in hybrid vehicle sales in the U.S., and GM has also announced plans to release hybrid versions of popular vehicles," adding, "The transition to electric vehicles will not be easy, but expanding consumer awareness of electric vehicles and creating alternatives like hybrids will be key to the spread of electric vehicles."