Demand for electric vehicles remains strong but is moving into a new phase, a recent study shows.
GBK Collective, a marketing and consulting firm, surveyed about 2,000 households. GBK found that half of U.S. households are considering EVs, plug-in hybrids and hybrid electric vehicles for their next purchase.
However, the new phase of interest is among people who aren’t “early adopters,” said Jeremy Korst, president of GBK.
“What we found while there is definitely growing interest in battery powered vehicles, considerers are significantly different than early adopters,” he said in an interview.
This new wave wants to check out plug-in hybrids and hybrid electric vehicles before going pure EV, the way many early adopters did, he added.
Hybrid electric vehicles have been around since the 1990s. They have two power sources: gasoline and electric engines. The electric engine is recharged as the brakes are applied. Plug-in hybrid use their electric engine more. They are plugged in to power sources while parked but still have a gasoline engine to complete journeys.
The new phase of potential EV customers is “more pragmatic” than the early adopters, Korst said.
“They want the confidence of” EV technology “working,” he added.
“We may need this bridge technology,” Korst said referring to hybrids.
GBK said the new phase of potential EV buyers is more concerned with the total cost of vehicle ownership compared with the early adopters.
“The next wave of potential electric-powered vehicle buyers are much more mainstream and pragmatic,” Korst said in a separate statement. “They aren’t looking to buy an EV just to have an EV – it needs to fit the needs of their ongoing budget and lifestyle needs.”
Among the study’s findings:
- About one in five (22%) of households are only willing to consider an EV or hybrid for their next vehicle purchase.
- Less than half (47%) of households say they will only consider gasoline-powered vehicles.
As a result, about a third of the market “is up for grabs,” GBK said in its statement.
- Potential EV buyers are willing to pay $7,650 more for an EV compared with a gasoline-powered vehicle with similar features.
- Potential EV purchasers report a median budget of $50,000 for their next vehicle purchase, compared with $59,000 for those who already own an EV.
