A new AAA survey finds an increased number of new car buyers in the U.S. indicated they are not interested in buying an electric vehicle.
The AAA survey found the percentage of consumers indicating they would be “unlikely” or “very unlikely” to purchase an EV rose from 51% to 63%, the highest since 2022. It also found only 16% of U.S. adults report being “very likely” or “likely” to purchase a fully electric vehicle (EV) as their next car, the lowest percentage recorded of EV interest since 2019.
“Since we began tracking interest in fully electric vehicles, we’ve seen some variability,” said Greg Brannon, director of automotive engineering. “While the automotive industry is committed to long-term electrification and providing a diverse range of models, underlying consumer hesitation remains.”
Key Barriers to Go Fully Electric
High battery repair costs (62%) and purchase price (59%) are cited as key barriers to go fully electric. Other top concerns identified in this year’s survey were the perceived unsuitability of EVs for long-distance travel (57%), a lack of convenient public charging stations (56%), and fear of running out of charge while driving (55%). Thirty-one percent of those undecided or unlikely to buy an EV have safety concerns, 27 percent reported challenges installing charging stations at their residences, and 12% cited the potential reduction or elimination of tax credits and rebates. According to AAA’s 2024 Your Driving Cost analysis, EVs had the second-highest total ownership costs due to depreciation, purchase prices, and finance charges.
Reasons for Interests
In 2022, gas prices reached $5, prompting many Americans to consider transitioning to electric vehicles (EVs) as a cost-effective option. In that year’s survey, 77% cited gas savings as their top motivation to purchase. Now, the national average for a gallon of regular ranges from $3.00 – $3.50, or even higher in depending on the state.
In this year’s survey, the primary reasons for buying EVs remain similar, with respondents citing gas savings, environmental concerns, and an appreciation for the lower maintenance costs associated with EVs. According to last year’s Your Driving Cost analysis, EVs had the lowest fuel cost of any vehicle type, based on a national average electricity price of 15.9 cents per kilowatt hour (kWh). EVs also had the lowest maintenance costs among all models.
Future of EVs
Despite advancements in the EV industry and the growing availability of models, public perception regarding the future of EVs remains uncertain. The percentage of U.S. drivers who believe that most cars will be electric within the next ten years has significantly declined from 40% in 2022 to 23% this year. Interest in EVs to take advantage of tax credits and rebates has decreased, dropping from 60% of those saying last year they are likely to buy an EV to 39% this year.
AAA’s Recommendations
Many consumers may find hybrid or plug-in hybrid vehicles more appealing. These vehicles combine the advantages of traditional internal combustion engines with electric power, reducing range anxiety while providing an environmentally friendly alternative. This combination meets today’s diverse needs and preferences for drivers, allowing them to enjoy electric driving without losing the familiarity of conventional gas-powered vehicles.
AAA will continue to monitor the evolving automotive landscape through consumer sentiment surveys and various research efforts to address concerns about EV ownership and provide feedback and insights for all vehicle types.
Source: AAA release
