Study Shows Buyers Considering An EV Purchase Are Down 14% As Consumers Bridge The Gap With Hybrids

The fifth iteration of the EY Mobility Consumer Index (MCI), a global survey of almost 20,000 consumers from 28 countries, found that despite record US consumer interest in electric vehicles (EVs) in 2023, only 34% of US consumers intend to purchase an EV as their next car in 2024. This marks a 14 point decrease since the 2023 MCI findings, proving that EV education is not where it needs to be and barriers to mass EV adoption still exist.

 

"While we've seen substantial increases in interest and purchasing of EVs since 2020, this year shows a dip in demand."

 

 EV purchase intent in the US registered a sharp decline with inclination toward BEV purchase witnessing a 11% decrease as compared to 2023 study

 

EV purchase intent in the US registered a sharp decline with inclination toward BEV purchase witnessing a 11% decrease as compared to 2023 study

"While we've seen substantial increases in interest and purchasing of EVs since 2020, this year's MCI shows dips in demand for the first time," said Steve Patton, EY Americas Automotive Leader. "This decrease is due partly to a lack of consumer education around the long-term value of an EV and maintenance requirements vs. traditional ICE (internal combustion engine) vehicles."

 

 

In the last year, consumer confidence in both EV range and charging infrastructure has risen, due in large part to cross-sector collaboration and investments in both education and charging stations. In 2023, MCI findings revealed that 30% of US car buyers were concerned about EVs' limited range. This year, only 24% of US car buyers felt the limited range of EVs was a top concern. What's more, the lack of charging stations is less of a worry than it once was. In 2022, MCI noted that 34% of US buyers were concerned about finding charging stations — that number was 23% in 2024, representing an 11 percentage-point decrease.

 

That said, confidence in EV range and charging infrastructure has been overshadowed lately by US consumers' increasing concerns about battery life and maintenance fees. Expensive battery replacement was the top deterrent to purchase an EV for US consumers, overtaking lack of charging stations for the first time. This is especially true for potential first-time EV buyers, as 27% noted concerns about expensive batteries compared to 23% of current EV owners.

 

"Over the last five years, we've seen tremendous progress around easing the barriers for EV adoption, from curbing reliability and accessibility concerns to instilling charging confidence among US consumers," said Marc Coltelli, EY Americas Power & Utilities eMobility Leader. "To keep momentum and make EV ownership appealing, it's imperative to educate and create a seamless customer experience from the dealership to the charge point, throughout the ecosystem and lifecycle of an EV. Now, US consumers are expressing heightened concerns over maintenance and battery replacement costs, when really it costs less to maintain an EV compared to ICE vehicles."

 

 

While EV demand has decreased, interestingly, hybrid vehicles have risen in popularity. In 2024, the share of US consumers intending to buy a hybrid vehicle as their next car rose 2 percentage points, compared to the global average, which decreased 2 points overall.

 

This rise can be attributed to the overall versatility of hybrid vehicles. In fact, 21% of US consumers say they prefer a gradual transition from an ICE vehicle to a fully electric vehicle. What's more, 26% of US buyers like the security that comes with a hybrid engine (compared to only 19% of global respondents). This shows that optionality is key, and hybrids are stepping in for EVs as a bridge vehicle for those interested but not yet willing to give up the comfort of owning an ICE.

 

"It's no surprise that hybrid vehicles are rising in popularity, especially with many potential EV buyers pointing to environmental concerns as their motivation to purchase," said Raman Ram, EY Americas Aerospace, Defense and Mobility Leader. "With many still hesitant to go all in with EVs, hybrids offer an 'easier-to-swallow' solution: the security of ICE with the advancements of EV technology and performance. For those who are looking to transition due to the environment, hybrids allow owners to lessen their reliance on fuel and creates options for batteries and parts. For many, it's a win-win."

 

 

Despite decreased demand, automakers have long used EVs in the transition to more connected vehicles. And now, as clear leaders in tech-enabled driving, US consumers expect EVs to have connected service options. For the majority (57%) of US consumers, navigation features are the top feature used when connecting a car to the internet, and a further 45% would pay for navigation services, proving technology enablement has become a basic necessity for potential car buyers. Another need for the majority (56%) of US consumers is safety measures, while almost half (46%) would use connected services for maintenance requests and service updates.

 

However, EV owners do feel pain points with the transition to connected cars. Almost half (47%) note high price points for additional services are concerning, with an additional 36% noting most services can be found on their smartphones.

 

While the road for consumers to become fully electric is bumpy, and as demand ebbs and flows, education and creating hybrid options will be key to the progression of mass EV adoption.