Consumers and dealers expressed opposing beliefs and concerns over the electric vehicle market in a new Cox Automotive analysis.
Of the 1,024 car shoppers surveyed by Cox Automotive, 51% said they were considering an EV purchase in 2023. This number represents a substantial increase from 2021 when the number only reached 38%. Consumer respondents also expressed confidence in the electric vehicle market’s future, with 53% sharing the view that battery-powered cars will eventually replace their gas-powered predecessors.
But for dealers, the future of the electric vehicle market is less certain. Of the 152 retailers included in the Cox Automotive survey, only 31% shared the view that EVs will overtake the internal combustion engine as the preferred method of transportation.
While consumers and dealers bring different perspectives to the table, their behaviors suggest a more complex relationship with the electric vehicle market. Despite their popularity among buyers, Cox Automotive notes that EVs are expected to account for less than 10% of all automotive sales volume in 2023. Many shoppers (43%) said the products were too expensive, while others (32%) expressed concerns over charging accessibility. On the other hand, while retailers are more hesitant to embrace battery-powered cars, more than half of the dealerships surveyed saw the segment as crucial for their business’s expansion.
Nevertheless, the demand for EVs has undeniably grown at an exceptional rate since the COVID pandemic. Cox Automotive expects the electric vehicle market to sell 1 million units this year, by far the highest number seen in the U.S. However, dealers will need to see profit before they can feel confident in their EV-related investments and to make this happen, both OEMs and retailers will need to address the roadblocks preventing shoppers from ultimately choosing to buy an EV.