A new report from the American Automobile Association (AAA) finds that interest in electric vehicles is at its lowest since 2019. Researchers say buyer hesitation continues despite the wide variety of EVs now available on the market. By AAA's count, over 75 all-electric vehicles have been introduced in the past four years.
In its new survey, AAA found that just 16% of U.S. adults report being "very likely" or 'likely' to purchase a full-electric vehicle as their next vehicle. That's the lowest recorded percentage of EV interest since 2019. At the same time, the percentage of consumers who say they are "unlikely" or "very unlikely to purchase an EV went up from 51% to 63%, 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
Here's are the main concerns that are stopping people from going all-electric, according to AAA's most recent data:
- High battery repair costs (62%)
- High purchase price (59%)
- Perceived unsuitability of EVs for long-distance travel (57%)
- Lack of convenient public charging stations (56%)
- Fear of running out of charge while driving (55%)
Thirty-one 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% 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.
The Gas Price Factor
When gas prices are high, there is more interest in EVs. When prices are lower, like they are right now, interest dips. AAA says back in 2022, gas prices reached $5, which prompted many Americans to consider transitioning to electric vehicles (EVs) as a cost-effective option. In that year’s survey, 77% cited gas savings as their top motivation to purchase. Fast-forward to today, the national average for a gallon of regular ranges from $3.00 – $3.50, or even higher in depending on the state. So gas savings are one reason drivers choose to go with an EV
Other Reasons for Going EV
In this year’s survey, other primary reasons for going EV include 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 EVs
When it comes to public perception, AAA calls the future of EVs uncertain despite advancements in the EV industry and the growing availability of models. There have been big drops in the percentage of U.S. drivers who believe that most cars will be electric within the next ten years - as well as interest in EV tax rebates and incentives.
Hybrids
Like Car Pro Show host Jerry Reynolds, AAA recommends hybrid vehicles. They are typically a more comfortable fit for people. They combine the advantages of traditional internal combustion engines with electric power, and do away with range anxiety that can come with a full-electric model.
Photo Credit: Hrecheniuk Oleksii/Shutterstock.com.