According to Kelley Blue Book, EV sales in the U.S. market surpassed 1 million units for the first time in 2023, but not everyone is on board just yet. On today’s episode of CBT Now, we’re discussing the findings of Cox Automotive’s new 2024 Path to EV Adoption Study. Vanessa Ton, Senior Research and Market Intelligence Manager with Cox Automotive, joins us.
Key Takeaways
1. EV sales in the US surpassed one million units for the first time in 2023, yet actual sales growth is slower than the increase in consumer consideration. Cox Automotive’s study forecasts a significant second wave of EV adoption starting around 2026, driven by improvements in EV technology, better consumer education, and price reductions.
2. The study identified three main barriers preventing consumers from purchasing EVs:
- Consumers want faster charging times, longer ranges, and better battery performance, including reliability in extreme weather conditions.
- Many potential buyers need more information about EVs’ costs, maintenance, and daily operation.
- The current price premium of EVs over internal combustion engine (ICE) vehicles is a significant deterrent. Consumers are waiting for prices to become comparable.
3. While dealers recognize the importance of EVs for their business growth and are heavily investing (on average $258,000), they feel underprepared. They are calling for more support from Original Equipment Manufacturers (OEMs) in terms of:
- Helping dealers attract and educate potential buyers.
- Financial support to boost sales efforts and market EVs more effectively.
- Providing specialized training and tools to safely and efficiently service EVs.
4. Successful EV adoption requires strong collaboration between OEMs and dealers. Dealers need OEMs to be actively involved in various aspects, including sales incentives, bonuses for salespeople, free maintenance offers, and providing necessary service equipment to handle the unique aspects of EV maintenance.
5. Overall, the report focuses on making consumers comfortable with EVs by addressing their concerns about operational costs, ease of maintenance, and reliability. Ensuring consumers are well-informed about the warranties and total cost of ownership is crucial to increasing EV adoption rates.
"In our research, we spoke to both EV considerers—those looking to buy an EV in the next two years—and EV skeptics, who are in the market for a car but not considering an EV at all. They told us they need three main things to consider switching to an EV." – Vanessa Ton
