Range and Charging Time Top Reasons Consumers Are Saying “No” to EVs

Results of a recent online survey we issued indicate range and charge time issues are mostly to blame for deterring potential future electrified vehicle (EV) buyers. The study was issued to AutoPacific's proprietary panel of respondents who are licensed drivers ages 18 and older and reside in the U.S. Of the 827 survey respondents, 50% say they would consider an EV in the near future and 50% say they will not.

As a pre-cursor to our comprehensive EV Rejector Study planned for release later in 2023, this smaller panel survey serves to test some initial hypotheses while the larger future study is designed. “It’s not a secret that those who refuse to purchase an EV are concerned about range and charging, but we now know more specifics about these deterring elements, like distance to charging station, availability of charging at work, dwelling style, etc.” says President and Chief Analyst Ed Kim. According to consumer responses, the top reason cited for not considering an EV in the future is “I would be worried about losing charge and being stranded,” followed by “I think the charge required to wait for an EV to charge is too long.”

Misperceptions and/or Lack of Charging Locations Deter Potential Buyers

Of respondents who will not consider an EV, 45% believe their home would require extensive and expensive upgrades in order to successfully charge an EV, compared to only 14% of EV acceptors. Additionally, only 6% of rejectors say either their employer offers a place to plug in or a public charging station is within close walking distance, compared to 30% of EV acceptors.

“At this point, consumers who can adopt an EV lifestyle most easily are the ones who are going to become EV owners,” says Kim. “While there is a certain level of misunderstanding about at home chargers, and there’s certainly a lack of public charging infrastructure, it will take a combination of education and availability to grow the EV acceptor population,” continues Kim.

Electrified Vehicles Priced Under $35,000 Could Persuade Some Initial Rejectors

EV cost is also a deterrent, as 41% of respondents cited “buying and/or operating an EV is too expensive” as a reason for rejection. However, a combined 35% of those respondents say they would change their mind if an EV was priced below $35,000. Kim says, “Given the more affordably priced EV entries on the horizon, it’s nice to know there’s not only an existing market for a cheaper EV among EV acceptors, but that a lower price point could sway some initial rejectors to enter the market.”

This finding highlights the importance of getting more affordable EVs into the marketplace as they will be crucially important in achieving federal and state level goals for mass EV adoption. If mainstream middle-class consumers can’t afford them, EVs cannot become truly mainstream vehicles.

Traditional Hybrids are Spearheading the Consumer Exodus from ICEs

While motivation accelerates for an all-electric future from both inside and outside the automotive industry, new vehicle shoppers are more likely to purchase a traditional hybrid than a full battery-electric vehicle within the next three years, according to our 2022 Future Attribute Demand Study (FADS), which gauges consumer interest in more than 120 vehicle features and powertrain types. Automakers are quickly adding a flurry of EVs to their lineups to meet sweeping mandates and zero-emission goals, as well as growing demand, but range anxiety, lack of at-home or public charging infrastructure, and purchase cost remain a concern for many consumers.

Expectedly, demand for gasoline engines is the strongest at 52% of all new vehicle intenders in this year’s study, which also means that nearly half of all intenders plan to acquire something other than a gasoline powertrain. For electrified powertrains, demand is the strongest for traditional hybrid powertrains at 18%, while plug-in hybrid and EV powertrains each earn 11% intention among of all new vehicle intenders. Demand for diesel is scant at 5% while hydrogen fuel cell powertrains register just 3% demand.

Nearly 1/2 of new vehicle intenders plan to purchase a powertrain other than gasoline, with 18% intending a hybrid and 11% intending an EV or PHEV.

AutoPacific’s analysis suggests that the ease of purchasing and owning a traditional hybrid vehicle versus a more advanced EV is likely the primary reason behind their higher demand. Traditional hybrids eliminate many of the perceived “headaches” of owning an EV. There’s no added need for a consumer to invest in an at-home charging station, plan their driving route based on available public charging stations, or fear range anxiety. Furthermore, many of today’s hybrids promise combined average fuel economy approaching 60 mpg, while many hybrid mid-size SUVs can approach 40 mpg.

“Not everyone may be set up to own an EV yet and for many new shoppers, traditional hybrids are still the most accessible and affordable way to go green. Hybrids have impressively evolved over the decades. They’re now found powering a much more diverse mix of popular bodystyles including pickup trucks, SUVs, and crossovers.”

-Robby DeGraff, Industry Analyst

Price Plays a Large Role in Hybrid vs EV Demand

Sticker shock is another roadblock for EV intenders, but not for affluent consumers who may be better prepped to pivot away from ICE ownership. Data from this year’s FADS study reveal that among intenders of EVs, 48% plan to spend at least $50k on a new vehicle, compared to just 22% of traditional hybrid intenders. “The truth is, there are actually quite a few great lower-priced EVs below $50,000 on sale right now, and on the way soon from multiple automakers,” DeGraff said. “But many consumers may not be aware of them just yet.”

Shoppers not wishing to open their wallets wide in order to lower their carbon footprint can find reprieve via efficient traditional hybrids that are readily available at more approachable price points. As such, there’s more desirability for them and less financial burden. Data show that among intenders of traditional hybrids, 78% plan to spend below $50k on a new vehicle, compared to just 52% of EV intenders.

AutoPacific data reveal that 48% of EV intenders plan to spend at least $50k on a new vehicle, compared to just 22% of traditional hybrid intenders. Conversely, 78% of hybrid intenders plan to spend below $50k on a new vehicle, compared to just 52% of EV intenders.

While demand for EVs is on the rise and more affordably priced models are entering the scene, there are many longstanding issues that need to be addressed over time in order for demand to outpace that of ICE and traditional hybrids. Until then, hybrid vehicles will continue to serve as the key pathway for consumers to collectively move towards a zero-emissions future.

Latest Study Reveals Wireless Charging Pad, Dash Camera In Top 10 Wanted Features; EVs as Path to Autonomy

What features do new vehicle intenders want to have in their next vehicle? AutoPacific recently completed fielding the 2022 edition of its signature Future Attribute Demand Study (FADS), designed to help automakers and suppliers better understand consumer demand for more than 120 features and technologies. With insights from over 11,000 respondents who intend to purchase a new vehicle within the next three years, AutoPacific’s FADS not only identifies what features are wanted overall, but also identifies features desired at a segment, powertrain and demographic level, while also collecting psychographic and in-vehicle activity insights from all respondents.

The 2022 FADS reveals a strong top ten mix of features from every category, with wireless charging pad for front passengers landing at number one, followed by sunroof/moonroof, all-wheel drive/4x4, dash camera and front and rear parking sensors. “Having such a variety of features land in the top ten highlights the need for automakers to look at the big picture and understand that it’s not all about safety, or comfort, or infotainment, but providing a combination of features that meet the many needs of consumers,” says AutoPacific president and chief analyst Ed Kim.

Top 10 Features Desired by New Vehicle Intenders

Are Alternative Powertrain Vehicles the Path to Autonomous and Other Advanced Vehicle Technology Implementation?

Sales of alternative powertrain vehicles, such as hybrids, plug-in hybrids and full-electric vehicles, are forecast to increase, in some cases exponentially, over the next five years, according to AutoPacific’s 5-year sales forecast, providing automakers with many opportunities to implement the latest iterations of autonomous and advanced driver-assistance technologies. “Alternative powertrain intenders have historically been on the cutting edge of technology and are typically more open to, and demanding of, advanced technologies,” says Kim. “FADS data confirms this hypothesis and really reveals how electrified vehicles can truly reshape the vehicle and driving experience of the future.”

Features with the highest percentage point different in demand between gasoline and EV intenders

Among the features with the highest percent difference in demand when comparing gasoline intenders to EV intenders, are four autonomous driving features and three advanced driver-assistance features. In most cases, feature demand incrementally increases from gasoline to hybrid, PHEV, and then to EV intenders. Additionally, demand is greater from EV intenders for all but two surveyed features: heated front seats and sunroof/moonroof, which both fall about even with gasoline intender demand.

“With so much opportunity for feature implementation, it’s an exciting time to be a manufacturer of EVs.””

— Ed Kim, President and Chief Analyst