Consumer interest in electric vehicles declines amid cost concerns

Banking & Financial Services
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Marshall L. Doney President and CEO | AAA, FL

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ORLANDO, Fla. (June 6, 2024) – The most recent annual consumer survey by AAA on Electric Vehicles (EVs) indicates a decline in consumer interest in purchasing EVs. Only 18% of U.S. adults say they would be “very likely” or “likely” to buy a new or used EV (not a hybrid), down from 23% last year. Additionally, 63% cited being "unlikely or very unlikely" to purchase an EV for their next car.

AAA found the main hesitations in purchasing an EV continue to be cost, lack of convenient charging options, and range anxiety. Three in ten also cited the inability to install a charging station where they live.

Accessible, reliable, affordable, and convenient charging is key to growing EV interest and adoption. For people who live in an apartment or condo, at-home charging options are likely not possible. An EV might be a great choice for households with two or more cars but might not fit the consumer who has to rely on their car for everyday use and travel.

AAA believes there may be a near-term ceiling related to consumer adoption of battery electric vehicles due to their costs, charging accessibility, and range anxiety. However, hybrid options could bridge these gaps, broadening consumer interest in owning an EV. AAA’s survey also found that one in three U.S. adults (31%) say they would be “very likely” or “likely” to buy a hybrid vehicle.

To help educate the public, AAA conducts ongoing research on EVs, including consumer sentiment surveys and testing factors impacting electric vehicle range and ownership costs.

AAA offers various resources and services for current and prospective EV owners:

- **EV 101**: An online resource for anyone interested in going electric.

- **The "CARBs" of Driving an EV**: An acronym for first-time EV drivers based on feedback from initial users.

- **Your Driving Cost Calculator**: An online tool providing yearly breakdowns of EV ownership costs.

- **#AdultingwithAAA: Car Care Electric Vehicles – Low Maintenance – No Problem**: A series offering tips and advice for young adults.

- **Mobile EV Charging Pilot**: Available in select cities as part of roadside assistance services.

- **EV Research**: In-house experts researching consumer sentiment around EVs.

- **AAA Car Guide**: Online resources containing links to previous editions from 2022 and 2023.

The survey was conducted April 4-8, 2024 using a probability-based panel designed to represent the U.S. household population overall. Most surveys were completed online; consumers without Internet access were surveyed over the phone. A total of 1,152 interviews were completed among U.S. adults aged 18 years or older with a margin of error of +/- 4% at the 95% confidence level.

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