June 23, 2024

Fewer Americans intend to buy an electric car this year, a study suggests

The number of U.S. buyers planning to buy an electric vehicle in 2024 is down from last year. A JD Power study shows that this is due to lack of affordable cars, inadequate charging infrastructure and ignorance about the benefits of electric vehicles.

Stubborn inflation, high interest rates and insufficient growth in model availability are other factors contributing to declining demand for electric cars in the US, the study found.

Why is it important?

US automakers have invested billions in developing and expanding production of EV models. But with demand for EVs slowing in recent quarters, they’ve had to scale back some of those plans.

environment

Falling demand for electric cars has put pressure on sales for U.S. automakers. In April, electric car major Tesla reported a decline in quarterly sales for the first time since 2020, when the Covid-19 pandemic halted production and deliveries.

In the same month, Ford Motor Company reported a first-quarter operating loss of $1.3 billion for its EV and software division.

By numbers

The study found that 24% of potential vehicle buyers would consider purchasing an electric car in 2024, up from 26% a year earlier.

The percentage of people who said they were “overall likely” to consider buying an EV this year fell from 61% in 2023 to 58%, the report said.

Key quotes

“About 40% of buyers say they don’t have a solid understanding of incentives,” said Stewart Straub, managing director of EV intelligence at JD Power.

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“In recent years, the number of eligible electric cars that meet the needs of buyers has increased significantly year-on-year. This year it has increased even more,” he said. (Reporting by Abhinav Parmar in Bangalore; Editing by Pooja Desai)