A new study conducted by global consulting firm Simon-Kucher & Partners has revealed that many Americans are not ready to pay the price for e-mobility despite them highly interested in electric vehicles (EVs).
According to the US Automotive Study 2020, the majority of Americans are deterred by high costs and convenience cut-backs when it comes to more environmentally-friendly car options such as EVs.
Key study findings include:
41% of survey participants would consider a hybrid vehicle for their next purchase and only 17% would consider an EV as their next car.
Americans would consider buying an EV if the price is right. The price determines 35% of the purchase decision, followed by range with 16%.
Peter Harms, Partner at Simon-Kucher, said: “Price is a big issue to break into the mass market, but for EVs there are additional obstacles. They also have to overcome concerns with regard charging infrastructure and range.
“Nearly 70% of consumer concerns are outside of pricing and are related to:
- Charging infrastructure
- Charging speed
“All of these concerns can be addressed in the upcoming years, and they have to be if EVs are supposed to become fit for the mass-market.”
Matthias Riemer, Director at Simon-Kucher, adds: “The study shows that only 45% of current buyers of hybrids or electric engines are willing to pay more for these features. This means that eMobility penetration is still heavily dependent on government subsidies.
“There is a wide disparity in the willingness to pay for EVs among customers. In the near term, the best strategy for profitable EV growth remains to ‘skim the market’ by offering well-equipped cars to well-off enthusiasts.”
The study was conducted in 2019 and included more than 1,100 Americans who bought, leased or financed a new car.