Automakers are making adjustments — or massive changes — to their electric vehicle plans after the $7,500 federal tax credit for EVs ended last month. Unsurprisingly, gas vehicles are coming back into vogue.
Americans prioritize price when buying a new vehicle. The end of the EV tax credit is helping drive new popularity of gas-powered new cars.
Rivian announced plans to lay off 600 workers at its Illinois plant, General Motors took a financial hit in the third quarter, and Ford’s likely to do the same. Overall, EV sales are expected to drop significantly when all the sales are counted in October.
And now, we see just how Americans really feel about EVs. A recent YouGov.com survey revealed that 69% of Americans who plan to buy a new car in the next 12 months prefer vehicles with gas engines, which is up from 54% 18 months ago. It’s the highest number since the group began tracking the numbers.
The big jump might take some by surprise because even though the tax credit is gone, gas prices are still higher than they were at the beginning of the year. The decline in popularity comes even as automakers are creating ways to make EVs more affordable.
Behind the numbers
The volatility of gas prices is frustrating for consumers, but not more so than paying more for what they perceive to be basically the same product. A new car, whether powered by internal combustion or electricity, still does the same thing: move from one location to another.
When choosing a vehicle, Americans prioritize price (70%), performance (61%), safety (57%), and fuel efficiency (56%) — all factors tied closely to everyday usability and cost.
Half of American adults (51%) also consider maintenance costs and vehicle size, while fewer (47%) cite engine type as a key factor in their car purchasing decisions, YouGov noted.
Overall interest in EVs dropped from 16% to 11%. Hybrids, which had been the new favorite child for a while, didn’t see any residual benefit, generating interest from 18% of those polled. Diesels actually fell to just 3%, which suggests diesel isn’t going to make a comeback — at least not in 2025.
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More drivers
The resurgence in gas-engine preference may reflect consumers’ desire for familiarity and dependability in a period of economic and technological uncertainty, the website noted.
While fuel prices remain volatile, gasoline-powered cars offer predictable ownership costs and widespread fueling access, which may feel more dependable to mainstream buyers than emerging alternatives like EVs or hybrids.
While gas prices have been in a state of flux, there is some sentiment that they will drop in the months ahead. The Energy Information Administration is predicting a record year for U.S. oil production, which leads some to believe that gas prices will drop,
Automakers are making adjustments — or massive changes — to their electric vehicle plans after the $7,500 federal tax credit for EVs ended last month. Unsurprisingly, gas vehicles are coming back into vogue. Find out more at Headlight.News.
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