Fewer people in the US plan to buy EVs this year, study shows
US automakers invested billions in developing EV models and ramping up production. But they have had to slow down some of those plans as demand for EVs softened over the last few quarters.
The number of buyers in the US considering an electric vehicle purchase in 2024 has fallen from a year ago due to a shortage of affordable cars, inadequate charging infrastructure and ignorance about EV benefits, a study by JD Power has shown.
Other factors contributing to waning EV demand in the United States include stubborn inflation, high interest rates and underwhelming growth in model availability, the study said.
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US automakers invested billions in developing EV models and ramping up production. But they have had to slow down some of those plans as demand for EVs softened over the last few quarters.
Context
Falling demand for EVs has pressured sales at U.S. automakers. In April, EV leader Tesla said its quarterly revenue fell for the first time since 2020, when the COVID-19 pandemic hampered production and deliveries.
The same month, Ford Motor recorded a $1.3 billion operating loss in the first quarter for its EV and software division.
By the numbers
The study showed that 24% of prospective vehicle buyers were "very likely" to consider purchasing an EV in 2024, down from 26% a year ago.
The percentage of those who said they were "overall likely" to consider purchasing an EV this year decreased to 58%, from 61% in 2023, the report said.
Key quotes
"Approximately 40% of shoppers say they do not have a solid understanding of incentives," said Stewart Stropp, executive director of EV intelligence, JD Power.
"In previous years, the number of viable EVs that met shoppers' needs increased substantially year over year. This year, it's been more incremental," he said.
