While electric vehicles appear to continually gain market share with each passing fiscal quarter, affordability remains one of the biggest factors preventing more consumers from converting to all-electric options. With that in mind, a new study has found that despite these headwinds, the vast majority of U.S. customers are considering purchasing an EV.
According to a report from BCG, 38 percent of folks polled claimed that they had plans to purchase an EV as their next vehicle, while another 27 percent are considering the same proposition later on down the line. When factoring in these responses with the six percent who already own an all-electric vehicle, BCG found that more than 70 percent of U.S. consumers have electric vehicles on their shopping list.
For reference, BCG surveyed 3,000 people in order to gain these statistics.
So, what actions can major automakers like General Motors take to capitalize on these potential consumers? For starters, there are a number of issues that should be addressed, including:
- 20-minute charging times
- 30-minute detour and wait times for fast-charging stations
- 350-mile driving ranges
- $50,000 starting prices
- Limited vehicle variety
Outside of these items, it’s also important to bear in mind the demographics of next-wave adopters. Per BCG, most of these buyers have the ability to install chargers at home, and are more likely to have a secondary vehicle. More specially, college-educated millennial men with high incomes make up the largest percentage of next-wave adopters due to less price sensitively, more enthusiasm with technology, and are more likely to indulge in a luxury purchase.
However, these same next-wave adopters have a high priority on running costs and established automakers than current EV owners.
Finally, the aforementioned affordability problem still exists. After accounting for customer tax credits, BCG found that automakers lose roughly $6,000 on every electric vehicle they sell for $50,000. In the same vein, high prices are one of the many factors keeping next-wave adopters at bay. With potential Chinese imports looming on the horizon, eventually automakers will no longer be able to justify these loses.
Subscribe to GM Authority for more GM EV news, GM business news, and around-the-clock GM news coverage.
Comments
Talk about a Fairytale! Total propaganda.
Yeah just like the polls said Hilary would win in 2016.
The fact that many of these companies are having to pull back on their EV production (like a certain company of high popularity on this site) because the demand for EVs have dried up and now the wider middle class market is not interested is telling me otherwise. I certainly doubt these companies are cutting back production and having to drop their prices because popularity is skyrocketing. I believe industry trends before I believe polls.
Hahahaha, true, they were so drunk on that night. bill was said to have retired into his bimbo lair.
I drove the Blazer EV, I hate to admit, it’s an excellent ride.
I believe it. And it gets many good reviews for its ride quality and now its at a more reasonable price (not counting any markups). They need to get more price competitive because if and when I do transition, it will not be a Tesla unless my only options are Tesla or Chinese brand.
Sounds like a bunch of BS. “Boston” Consulting Group is all you need to know.
For January2024 , new EV registrations were up 15% vs January 2023 with a total of about 90,000. The overall car market was only up about 5% with about 1.1 million registrations. That means ICE vehicles registration actually declined by about 40,000 compared to January 2023.
Also, automakers are still increasing production of EVs, but they are decreasing their planned growth rates.
rEvOlutionary, presenting facts will not change BEV hater minds – only make them dig in deeper. As you point out, its quite clear that BEV growth still outpaces the shrinking ICE market and BEVs will account for 1 out of every 8 sales in the US this year (2M of ~16M). BEV haters will point out that hybrids/PHEVs rates are increasing even more, but that is mainly attributed to Toyota eliminating the gas only version on several of its most popular cars. They conflate lack of interest from anecdotal regional data and their geriatric peers, but the next generation is all in on BEVs.
Ignoring facts won’t change anything either. Adoption has slowed, even EPA has recognized this and adjusted timelines. And imagine what adoption rates would look like without incentives on EV’s and penalties on ICE? Worldwide, the tax incentive/penalty on the transition to EV is the largest experiment ever on government forcing consumer behavior. Name one other area government has spent/taxed of this magnitude to force a behavior? Even home ownership doesn’t get this kind of stuff. Close to 10 grand per unit in the western countries. And I’m not even trying to value the benefits granted EV’s like Cal’s free HOV access. Probably worth an extra 5K to many in Cal.
The EPA didn’t recognize anything, that delay was purely political. ” Name one other area government has spent/taxed of this magnitude to force a behavior?’ The gas/oil industry subsidies (implicit and explicit) from our federal and state governments dwarf any provided by the IRA. To be clear, none should exist, but they do. The IRA, which includes home HVAC, solar, corporate welfare to GM Ford, etc for building factories, battery production, etc and the $7500 BEV tax credit will cost a total of $780B over its 10 year span. Less than 35% of the IRA is earmarked for the BEV tax credit, therefore the BEV tax credit will cost $273B over 10 years (or $27.3B/year) – which is less than we have given to Ukraine since 2022 BTW. Prior to the nonsense going on in the middle east, the Navy spent $81B per year (at least triple now) guarding oil shipping lanes alone – that costs more than the entire IRA over 10 years, not even taking into account the annual federal subsidies supporting gas/oil exploration, production, refining and distribution, which according to the Senate Budget Committee is $20 billion dollars every year. US gas/oil subsidies began in 1913 (32 total bills passed to further subsidize the fossil fuel industry) and have cost taxpayers trillions. That’s how we got to where we are now – we wouldn’t have cheap and convenient gas without those subsidies that paved the way for these companies, PERIOD. What’s wrong with going in on all electric – expand the infrastructure (already subsidized), build a sh!t ton of nuclear power plants and be energy independent – fossil fuels are finite. We can be a net exporter of gas/oil and have plenty left for fertilizer, plastics, etc and never have to care about the middle east.
What’s wrong with going in on all-electric? Most people do not want an EV and Americans- unlike other parts of the world- like choice and not having Big Brother government telling us what we need to buy,
I would give that title of “largest government experiment” to Covid lockdowns. What better way to control the masses? Look no further than the CCP and their Zero Covid policy for authoritarian inspiration.
Your unbiased screen name tells us everything we need to know about how factual and truthful your comments are.
LMAO! There is mot sufficient infrastructure to accommodate EV vehicles, nor will there be in the near future. I’m all for hybrid, but not plug in hybrid, to be the gap until there are enough charging stations or battery life can be sufficient for long range driving without having to stop and charge my EV for an hour or so on long trips. Corvette is going the right way imo with their Eray…why can’t the rest of GM mirror that technology?
You are so correct about insufficient infrastructure to accommodate EV’s and “nor will there be in the near (nor distant) future. Joetato’s WAR ON COAL is forcing the closure of more and more Coal-fired power plants and Electric Co-ops across the U.S. are extremely concerned about it due to the unreliability of so-called “renewable” Electric power sources during peak-demand. It’s just more counterintuitive ineptocracy from the Biden Admin who mandates EV’s while, at the same time, destroys the power generating sources needed to charge their increasing numbers that Americans are going to be forced to buy.
LMAO. Total BS. If this were true the auto industry wouldn’t be in total panic mode, slashing EV prices, cutting production, scaling back factory builds, cancelling EV projects, and doing a 180-pivot with their PR rhetoric.
No one is cutting production. Read past the headlines. They are reducing planned growth, like delaying new factories but still increasing production.
OK, so FOMOCO didn’t slash production of the EV F-150 by a full 50%. Got it ! More unfortunate misinformation.
Someone skipped over the article title with their owned preformed agenda. Let me help you out, it says CONSIDERING…
Study is total BS. More like 7%, if that.
No interest in EVs at this point; too expensive for what you get. The batteries are lucky to last 10 years and I typically drive used GM vehicles to that point and beyond. A middle-class guy like me can only expect to work the rest of their life to pay for such luxuries that EVs are. I’d prefer to have freedom.
They aren’t lucky to last 10 years most do. Around 2% degradation a year means you have 80% capacity at 10 years which from what I have read/heard is on the higher end of how much you lose, probably less than that. Many of the early Model S batteries are only showing a 10% drop in range after 8 years Many stating from 270 down to around 245/250 range now versus new. Batteries will have no problems making it to 200k+ in most cases. But just like engines that have premature failures batteries can too though. Our car battery crapped out just under 3 years. Luckily it was fully covered but I would expect closer to 5 years normally.
Take that with what you will, the reliability of batteries and electric motors is superior to ICE vehicles with the sheer minimal amount of parts they use, that is a huge plus in itself. I wouldn’t seriously consider one just yet, but ask me again in 10 years as production brings prices down and the infrastructure catches up, then for my wife we would seriously consider it. No oil changes, rare stops to charge as we could just charge at home in most cases or when shopping has appeal.
After 10 years, I have zero degradation of my ICE powertrain.
That’s why the price of the Blazer EV was cut $6,000. Total BS!
Research companies agree with 95% of the people funding their research.
99.9 %…….95% is far too low……..All POLLS, similar results, or both Companies would go swiftly out of business.
Wow. The truth really triggers the anti-EV crowd.
Where is my factual reply to this baloney refuting this statement ? Are you censoring facts and truth again on here ?
EVs are the future however their current design aesthetics sucks. Most EVs look like boring sedans or station wagons that are overpriced when compared to their ICE counterparts.
I think tesla is much to blame here. The S was very good looking except for the front. Then Elon got control and we got a 3 bagger XY.
mkAtx – you do realize that the Model Y was the top selling vehicle globally in 2023 and continues to be so in 2024, therefore it looks like many disagree with you.
His comment was EV’s are not attractive. Neither is a corolla. Selling != aesthetically pleasing. And the Y has been displaced by BYD. Tesla just announced redux in China factory output and their latest quarters have shown less sales in China. BYD is going to eat their lunch in China. And Elon is praying they don’t allow them to be sold in the US. They are selling them in EU and soon Mex. The BYD is not particularly attractive either. Just inexpensive. So it sells very very well. It is priced at under 10K USD.
The redux in production in China is more a sign that Chinas economy is not doing very well than BYD “stealing their lunch.” Yes a tough economy will push people into more affordable options like BYD much like people are buying the cheaper Trax here but again. Chinas economy is in bad shape after their Zero Covid policy and the collapse of their real estate industry. This is why pork prices in China has plummeted and there is a surge in Chinese migrants (many who are middle class families even) at our border.
Feb sales were down due to Lunar New Year. It is a very big holiday in China. It is expected BYD will gain 50+ market share in China this year in NEV’s. BYD is also aggressively expanding to foreign markets. We should be worried. They are a manufacturing juggernaut. As an example some Y’s use BYD batteries.
Its not just February. Since Covid their economy has been struggling to regain footing because of the collapse of their real estate industry and the disaster that was zero covid. Companies like BYD are having to expand out of China because they cannot rely on only the Chinese market for any growth anymore. Their economy has stagnated and they need external markets now to survive. I agree, there is much reason for concern, but lets not pretend China is this miracle story that can do things other countries can’t. And remember. Take everything the government says with a pound of salt. They are known for massaging numbers to make it look like things are rosy for them. You have to look at other forms of data out of their control like pork prices as an example.
If you don’t know about Sweet Baby, Inc. in the gaming industry, it’s worth your time to look into the story. It’s crazy to learn how many of these “consulting firms” operate and where their funding comes from.
70% seems absurd, even if the poll was ONLY taken in a place like California.
And a quick Google search shows this firm had a team at the WEF conference in Davos this year, because of course they did.
LOL
I guess 3000 thousand people can support a major automaker. That’s funny.
Statistics can be manipulated to say whatever you want. Remember that “Considering” does not mean “I am buying”. For example, I’m considering buying a classic car such as a Cadillac Eldorado convertible but actually ended up buying a Lincoln Continental Mark V Cartier Edition with moonroof.
I find that headline extremely hard to believe!
All the major News outlets have and are STILL REPORTING the EV market is suffering and GEE
Hasn’t FORD announced just a few weeks ago that they are CUTTING BACK on their EV Production numbers
Stop! No way, especially after what people went through In the Chicago cold this winter (that’s just one instance). Also, out of 70% of these consumers, how many can actually afford an EV?
I was “considering” purchasing a mansion in the Swiss Alps, but, alas, I decided to rent a small apartment in Compton. Sign me up for the next survey.
Where did they take this” study” ?? I don’t know Anyone who is even remotely interested in a EV. Personally you would have to Pay Me to take one of these gadgets off your hands. The issue here is the automakers invested Billions in these junks, and the Demand is Not There. They are getting nervous they will Lose like never before. Keep these gadgets yourself, Not Interested
After Joetatoe’s latest Tyrannical order about EV’s, Public resistance and outrage at loss of choice and freedom has accelerated and is aimed directly at the Dictator in the White House and the mandate for EV’s….
From the very start of this effort to convert everything to EV i’ve said i’d buy horse before ever buying an EV and all these precious posts here are a good reason for NOT going to a EV! We will never get to what this administration wants/demands us to drive. Tomg
I think the main beef right now is what some mentioned before in the comments. The electricity infrastructure. We had 2 emergency broadcasts in Alberta this winter when our temps were pushing -45 Celsius. Had we been in a full EV transition our grids would have failed. I don’t know the U.S. electrical system but I’ve heard many states suffer rolling blackouts now. How in the heck are they going to provide electricity for both cold and hot states when furnaces and air conditioners are blasting away? At least 20 years away from providing for 70% EV adoption.
I guess you came make numbers look how ever you want here is an example