Interest in EVs appears to be waning

VW independent staff/submitted information

Despite the wide variety of electric vehicle models now available – over 75 options introduced in the past four years – a new survey by AAA highlights the continued hesitation by potential buyers.

Only 16 percent of U.S. adults report being “very likely” or “likely” to purchase a fully electric vehicle (EV) as their next car, the lowest percentage recorded of EV interest since 2019. The percentage of consumers indicating they would be “unlikely” or “very unlikely” to purchase an EV rose from 51 percent to 63 percent, the highest since 2022.

“Since we began tracking interest in fully electric vehicles, we’ve seen some variability,” said Greg Brannon, director of automotive engineering. “While the automotive industry is committed to long-term electrification and providing a diverse range of models, underlying consumer hesitation remains.”

Key barriers to go fully electric

High battery repair costs (62 percent) and purchase price (59 percent) are cited as key barriers to go fully electric. Other top concerns identified in this year’s survey were the perceived unsuitability of EVs for long-distance travel (57 percent), a lack of convenient public charging stations (56 percent), and fear of running out of charge while driving (55 percent). 31 percent of those undecided or unlikely to buy an EV have safety concerns, 27 percent reported challenges installing charging stations at their residences, and 12 percent cited the potential reduction or elimination of tax credits and rebates.  According to AAA’s 2024 Your Driving Cost analysis, EVs had the second-highest total ownership costs due to depreciation, purchase prices, and finance charges. 

Reasons for interests

In 2022, gas prices reached $5, prompting many Americans to consider transitioning to electric vehicles as a cost-effective option. In that year’s survey, 77 percent cited gas savings as their top motivation to purchase. Now, the national average for a gallon of regular ranges from $3-3.50 or even higher depending on the state.

In this year’s survey, the primary reasons for buying electric vehicles remain similar, with respondents citing gas savings, environmental concerns, and an appreciation for the lower maintenance costs associated with EVs. According to last year’s Your Driving Cost analysis, EVs had the lowest fuel cost of any vehicle type, based on a national average electricity price of 15.9 cents per kilowatt hour (kWh). EVs also had the lowest maintenance costs among all models.

Future of electric vehicles

Despite advancements in the EV industry and the growing availability of models, public perception regarding the future of EVs remains uncertain. The percentage of U.S. drivers who believe that most cars will be electric within the next ten years has significantly declined from 40 percent in 2022 to 23 percent this year. Interest in EVs to take advantage of tax credits and rebates has decreased, dropping from 60 percent of those saying last year they are likely to buy an EV to 39 percent this year.