Approximately 50% of US Car Buyers Intend to Buy an EV That Delivers Better Performance

Almost Half of US Car Buyers Planning to Buy an EV, Citing Improved Performance. Fresh findings from EY unveiled that nearly fifty percent of American consumers are gearing up to procure an electric vehicle (EV), propelled by enhanced consumer assurance in the sector's latest advancements in performance.

Key TakeAway

• Novel findings reveal that 48% of consumers have a firm intention to acquire an EV within the upcoming 24 months.
• Research suggests that 29% of U.S. consumers harbor the belief that electric vehicles outperform their internal combustion engine counterparts.
• Recent skirmishes over prices and synergistic collaborations for charging stations hold the potential to facilitate the adoption of EVs.

The EY Mobility Consumer Index (MCI) conducted an extensive survey encompassing more than 15,000 respondents hailing from 20 nations. The study revealed that 48% of U.S. consumers have expressed their firm intention to acquire an EV within the next 24 months. Astonishingly, this figure marks a significant surge of 19 percentage points compared to a mere 29% in 2022. The United States has soared to the seventh spot in terms of electric vehicle readiness, with China, Norway, and Sweden securing the top three positions.

Enhancements in performance delivered by EV manufacturers have engendered a notable upswing in consumer confidence over the past two years. Back in 2021, the MCI reported that 26% of U.S. car buyers were plagued by concerns regarding the superior performance of internal combustion engine (ICE) vehicles over EVs. However, as of 2023, a burgeoning 29% of buyers now firmly believe that EVs outperform their ICE counterparts.

Notwithstanding this positive shift in sentiment, consumers remain primarily apprehensive about EV charging infrastructure, pricing, and safety. A significant 51% of buyers identify limited access to charging stations as the primary deterrent to EV adoption.

The MCI anticipates witnessing further enhancements in buyer intentions following significant transformations in the EV market during the initial half of 2023. In a bold move, Tesla (TSLA), the vanguard of the EV industry, initiated a sequence of price reductions to safeguard its prominent market share, consequently compelling competitors to follow suit and lower their own prices. This development was promptly succeeded by unforeseen agreements with Ford (F), General Motors (GM), and Rivian (RIVN), thereby granting owners access to Tesla's expansive charging network comprising a staggering 12,000 charging units.

The U.S. government persists in offering tax credits amounting to a maximum of $7,500 for EV purchasers, which has undeniably amplified buying intentions among American consumers. Moreover, the MCI has indicated that the infrastructure modifications outlined in the Inflation Reduction Act have the potential to render charging stations more accessible to U.S. consumers.

"In the wake of governmental legislations designed to address consumer concerns and foster increased collaboration between the private and public sectors, this year's data unequivocally demonstrates that the United States stands at a genuine precipice in terms of widespread EV adoption," remarked Steve Patton, EY Americas Mobility Sector Leader.