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June 18, 2024 by Adam Malik
A new wave of electric vehicle buyers is expected to enter the market in the second half of the decade, according to the latest 2024 Path to EV Adoption Study by Cox Automotive.
The study reported that while nearly half of current vehicle shoppers are not considering an EV, a significant shift is anticipated as technological advancements and improved infrastructure address their concerns.
Currently, 45 per cent of in-market vehicle shoppers are considering an EV, down from 51 per cent last year. However, the study suggested that within three to five years, 54 per cent of today’s skeptics — those currently only considering traditional internal combustion engines — will start considering EVs. By 2033, 90 per cent of all vehicle shoppers are expected to have EVs on their lists.
“While we’ve seen EV sales growth slow and consideration dip, we believe this is part of a normal growth curve and not the end of the story,” said Isabelle Helms, vice president of research and market intelligence at Cox Automotive. “With more infrastructure, education, and technological innovation, we believe electric vehicle sales will continue to grow in the long term.”
The study indicated that high EV prices and a lack of charging stations are the main barriers for skeptics, who emphasized the absence of sufficient charging infrastructure as their primary concern. Many are waiting for better range, longer battery life and overall technological advancements before making the switch. In contrast, those already considering EVs cite price as the top obstacle.
The demographic landscape of EV buyers is also shifting. The market, once dominated by luxury and high-income households, is now attracting a more diverse group of buyers, including Gen Z, multicultural, and less affluent shoppers. This broader appeal is partly due to the increasing consideration of used EVs. The study found that 77 per cent of EV considerers are now looking at used models, a significant rise from 62 per cent in 2021.
Moreover, mainstream brands like Toyota, Hyundai and Kia are gaining traction in the EV market, though Tesla remains the most-considered EV maker. The study highlighted that many consumers are still unaware of EV offerings from other major automakers, such as Nissan, despite the Leaf being available in North America since 2011.
The relationship between dealers and automakers regarding EV sales has improved since 2019, becoming more strategic and balanced. Dealerships report increased support in marketing, sales and service, but they also seek additional resources such as more EV incentives and advertising funds.
Despite feeling pressure from automakers to meet EV sales targets, 86 per cent of franchised dealers are likely to continue investing in EV infrastructure, signalling a collaborative effort to accelerate EV adoption.
When EV adoption is expected to surge
A new wave of electric vehicle buyers is expected to enter the market in the second half of the decade, according to the latest 2024 Path to EV Adoption Study by Cox Automotive.The study reported that while nearly half of current vehicle shoppers are not considering an EV, a significant shift is anticipated as technological advancements and improved infrastructure address their concerns.
Currently, 45 per cent of in-market vehicle shoppers are considering an EV, down from 51 per cent last year. However, the study suggested that within three to five years, 54 per cent of today’s skeptics — those currently only considering traditional internal combustion engines — will start considering EVs. By 2033, 90 per cent of all vehicle shoppers are expected to have EVs on their lists.
“While we’ve seen EV sales growth slow and consideration dip, we believe this is part of a normal growth curve and not the end of the story,” said Isabelle Helms, vice president of research and market intelligence at Cox Automotive. “With more infrastructure, education, and technological innovation, we believe electric vehicle sales will continue to grow in the long term.”
The study indicated that high EV prices and a lack of charging stations are the main barriers for skeptics, who emphasized the absence of sufficient charging infrastructure as their primary concern. Many are waiting for better range, longer battery life and overall technological advancements before making the switch. In contrast, those already considering EVs cite price as the top obstacle.
The demographic landscape of EV buyers is also shifting. The market, once dominated by luxury and high-income households, is now attracting a more diverse group of buyers, including Gen Z, multicultural, and less affluent shoppers. This broader appeal is partly due to the increasing consideration of used EVs. The study found that 77 per cent of EV considerers are now looking at used models, a significant rise from 62 per cent in 2021.
Moreover, mainstream brands like Toyota, Hyundai and Kia are gaining traction in the EV market, though Tesla remains the most-considered EV maker. The study highlighted that many consumers are still unaware of EV offerings from other major automakers, such as Nissan, despite the Leaf being available in North America since 2011.
The relationship between dealers and automakers regarding EV sales has improved since 2019, becoming more strategic and balanced. Dealerships report increased support in marketing, sales and service, but they also seek additional resources such as more EV incentives and advertising funds.
Despite feeling pressure from automakers to meet EV sales targets, 86 per cent of franchised dealers are likely to continue investing in EV infrastructure, signalling a collaborative effort to accelerate EV adoption.
