More US consumers want EVs but prices are a concern

More US consumers want to buy an electric vehicle (EV) but are concerned about rising prices, while fewer aim to purchase petrol-powered vehicles, a survey by consulting firm Deloitte showed on Wednesday.

Nearly seven in 10 prospective EV buyers in the US expect to pay less than $50,000 (around R850,000) for their next vehicle, according to the survey conducted between September and October 2022.

More than half the respondents in the survey said a lack of affordability is the biggest concern when it comes to EV adoption, at a time when top EV makers are raising prices amid high inflation.

Tesla’s popular Model Y starts at $65,990 (R1.1m), while legacy carmaker Ford’s Mustang Mach-E begins at $46,895 (R796,000), according to the respective company websites.

Despite the pricing pinch, the intent to purchase an EV is up three percentage points year on year in the US, with an identical increase recorded for hybrid EVs and plug-in hybrid EVs, Deloitte said in its 2023 Global Automotive Consumer Study. Internal combustion engine purchase intent dropped to 62% from 68%.

“Although historically high transaction prices are a significant challenge for consumers, a strong desire to reduce refuelling costs is driving EV purchase intent around the world,” said Deloitte vice-chair and US automotive leader Karen Bowman.

The survey showed 30% of US consumers do not trust anyone with the data from their vehicles, signalling a significant challenge for manufacturers looking to further monetise the mobility experience.

Globally, consumers would rather pay for connected technologies upfront as part of the vehicle’s transaction price or per use, compared with a subscription plan, the study said.

Reuters