High EV Prices Dampen Global Consumer Demand Despite Improved Tech And Range: Report

Despite technological advancements and an increase in model availability, high prices of electric vehicles (EVs) continue to dissuade potential buyers on a global scale, according to a recent survey.

What Happened: A global consumer survey undertaken by S&P Global Mobility found that 48% of the 7,500 global respondents consider EV prices to be excessively high. Although consumers comprehend the inherent price premium associated with EVs, they remain concerned about the financial implications.

Such concerns are widespread, even in regions where EV market penetration is substantial, reported S&P Global Mobility.

“Pricing is still very much the biggest barrier to electric vehicles,” declared Yanina Mills, a senior technical research analyst at S&P Global Mobility.

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Despite the expansion of EV models and improved vehicle range over the past couple of years, consumer enthusiasm for purchasing an EV has decreased. Even with increased awareness of tax-credit benefits and a surge in available EVs, less than half of the respondents believe that EV technology is ready for mass-market adoption.

Only 42% are considering an EV for their next vehicle purchase, while 62% are awaiting further technological advancements before buying a new car. This marks a significant drop from 2021 when 67% of participants were open to purchasing an EV.

Charging concerns were the second-most cited reason for not buying an EV, with 46% of respondents apprehensive about charging time and 44% about the availability of charging stations. The survey results indicate financial constraints, despite technological advancements and charging concerns, as the primary obstacle to wider EV adoption.

Why It Matters: Growing interest in EVs has been hampered by high costs, leading to a slowdown in demand. Average EV prices, exceeding $50,000, have been a deterrent for potential buyers. This has resulted in a shift in buyer demographics from committed EV enthusiasts to average customers considering options between EVs, hybrids, and gasoline vehicles.

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