A recent research study indicates a growing interest among U.S. citizens in purchasing an electric vehicle or hybrid car for their next buy, despite the noted high prices.
What Happened: A study by GBK Collective, as reported by Business Insider, revealed that half of the over 2,000 U.S. car consumers surveyed are considering an electric or a hybrid car for their next vehicle. This figure significantly surpasses the current ownership rates, with only 14% of those surveyed already owning a plug-in or hybrid vehicle.
Jeremy Korst, president of GBK, noted that this emerging group of potential buyers differs from the early adopters of the EV market. They are more practical, considering functional needs and the total cost of ownership.
The study also found that the median budget of these EV considerers is $50,000 for their next car, lower than the average budget of $59,000 for current EV owners.
See Also: 6 Best EV Penny Stocks Right Now
The study also found that Toyota Motor Corp. TM was the most popular brand among the respondents, with 47% indicating a preference for the Japanese automaker over 41% favoring Tesla Inc. TSLA.
This aligns with the narrative industry insiders have been communicating for several months — a new wave of EV consumers is emerging, and the industry seems ill-equipped to meet their requirements.
Why It Matters: Despite affordability concerns, the study found that EV considerers are prepared to pay an average of $7,650 more for an EV than a gas-powered car with similar features. This suggests a significant opportunity for EV manufacturers to meet these evolving demands.
However, high prices of EVs continue to deter potential buyers worldwide, as indicated in a 2023 survey by S&P Global Mobility.
Interestingly, Toyota Chairman Akio Toyoda forecasts battery EVs will secure no more than 30% of the global automotive market share, leaving the majority to other fuel technologies.
Aggressive price cuts from Tesla in 2023 played a crucial role in closing the price gap between EVs and traditional internal combustion engine vehicles, as reported by Cox Automotive.
Read Next: Canoo Inks Deal With USPS: Postal Service To Acquire 6 EVs
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