Electronics and Semiconductors

AAA: America’s interest in EVs is falling

06 June 2024
Source: AAA

Only 18% of U.S. adults say they would be likely or very likely to buy a new or used electric vehicle (EV), however, Americans are warming up to the idea of owning a hybrid, according to AAA’s annual consumer survey on EVs.

EV interest is down from 23% of consumers that said they would likely or very likely buy an EV in 2023. The results show an increasing problem with EVs sales and why automotive OEMs may be slowing their overall adoption strategy of the technology.

"Early adopters who wanted an EV already have one," said Greg Brannon, director of automotive research at AAA. "The remaining group of people who have yet to adopt EVs consider the practicality, cost, convenience, and ownership experience, and for some, those are big enough hurdles to keep them from making the jump to fully electric."

AAA found five main reasons why EVs are declining in consumer interest, including:

  1. Higher purchase price
  2. High cost of battery repair or replacement
  3. Lack of EV chargers
  4. Range anxiety
  5. Unsuitable for long distance travel

Additionally, for people that live in an apartment building or condo, at-home charging options may not be possible, so EVs could likely only be suitable for households with a two-car garage and do not need to rely on an EV for everyday use and travel, AAA said.

Source: AAA  Source: AAA

Near-term ceiling

AAA said that the market for EVs may be reaching a near-term ceiling for adoption due to these reasons. However, the good news is that hybrid options could bridge the gaps while the automotive industry works on improving these challenges.

According to AAA’s EV survey, one in three U.S. adults said they would be open to buying a hybrid. The main reasons for the hybrid optimism are that it lessens the range anxiety of consumers while offering the benefits of electrification without disrupting current lifestyle or travel plans.

“Deciding to make the leap to full electric may feel overwhelming for many consumers, and a hybrid option may be the way to bridge this gap,” Brannon said. “Consumer demand will ultimately dictate the future, and my prediction is that we will have a mix of EVs, hybrids, and internal combustion vehicles in dealerships and on the roads in the US for many decades ahead.”

To contact the author of this article, email PBrown@globalspec.com

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