Cox Automotive recently released their 2023 Path to EV Adoption: Consumer and Dealer Perspectives study, so on today’s Inside Automotive, we’re learning more about the study’s findings, especially as new EV inventory increases. We’re pleased to welcome Kayla Reynolds, Manager of Research Market Intelligence at Cox Automotive Mobility, to tell us more.
The 2023 Path to EV Adoption: Consumer and Dealer perspective study is the continuation of the initial study compiled in 2019, which monitors the changes of the consumer and dealer sentiment around EV adoption and consideration. According to Reynolds, the study also illustrates how understanding EVs will change the consumer shopping and ownership experience and the impact it will have on dealerships.
Takeaways
Cox Automotive noted that one of the key takeaways from the study was related to EV consideration growing rapidly, while sales are slowly growing. However, the company expects EV sales to catch up to the consideration rate, which is currently at an all-time high. Reynolds notes that when examining the top barriers of EVs, costs remains at the top of mind for consumers. For example, the latest June average transaction price data concluded that newly priced EVs are still being priced over $50,000. “Still, that number is a large decrease from this time last year,” asserts Reynolds. She continues, “We expect a decrease in price as more EVs hit U.S. roads.”
The results of the study revealed:
- Over a third of dealers feel the future will be electric.
- Compared to half of consumers who believe the future will be electric.
However, there remains a gap between the consumer and dealerships per their take on EVs, which are as follows:
- Over 50% of dealers feel selling and servicing EVs will be vital to their roles as a dealership.
- Over 50% of franchise dealers say they are unprepared to sell or service EVs due to their lack of educational resources.
According to Reynolds, the mismatch may result from franchise dealers forced by their OEMs to offer electric vehicles. However, there is still a need for those dealers to have access to more training resources for servicing and retailing EVs. All in all, within the next three years, Cox expects there will be 150 new EVs available on U.S. roads. Therefore, in the near term, dealers should focus on the overall service of electric vehicles.
