Electric vehicle sales have been on the rise for much of 2023, although they’ve leveled off in the past few months. A new study reveals that cool down mirrors that of Americans wanting to buy new EVs at about 25%, which is about the same as last year.
A new AAA study shows about quarter of Americans will probably buy a new electric vehicle the next time they purchase a new car, truck or SUV.
The 25% who are “very likely” or “likely” to buy a new EV is good news for automakers, as the new EV sales account for about 10% all new vehicles purchased right now. This means there’s still more room for growth, although it appears to fall far short of the Biden administration’s goal of EVs accounting for 50% of all new cars sold annually by 2030.
Of course, that percentage could grow as the buying demographic changes. Millennials, according to the study, are more likely to say they would buy a fully electric vehicle for their next vehicle (31%) than Generation X (21%) and Baby Boomers (18%).
The number for millennials interested also remained about the same from last year’s study with 30% being very likely or likely to buy an electric vehicle.
As the income level of millennials continues to grow, they’re more likely to be able to afford a new battery-electric vehicle, helping to move more metal … at least what metal is left in new vehicles as they continue to develop.
What and why
Consumers who are interested in buying electric vehicles are most interested in purchasing new. Six in ten (58%) of those saying they are likely to purchase an electric vehicle for their next vehicle say they would purchase new, one quarter (26%) would purchase used, and 16% are unsure.
The key reasons consumers would purchase an electric vehicle are saving on gas (76%) and concern for the environment (60%).
However, cost (59%), lack of charging stations (56%), cost to replace or repair the battery (55%) and range anxiety (53%) remain the primary barriers to purchasing an electric vehicle, for those undecided or unlikely to buy an EV.
In addition, four in 10 consumers are concerned about the impact cold weather has on an electric vehicle’s range, a factor that can reduce the battery’s range substantially.
Another factor coming into play is the fall in gas prices year over year. The current average for a gallon of regular gas is $3.29 whereas a year ago it was $3.66. More than half the U.S. right now — 31 state — has gas prices below $3.28 a gallon, including 11 states where the average is below $3 a gallon. The big push to shift to electric vehicles came when gas prices were well above $4 a gallon.