New study: Slowdown in EV interest more of a ‘blip’ than ‘systemic change’

New data shows that U.S. car buyers are less likely to buy an EV in the next two years than they were a year ago. Yet, analysts say the long-term trends reveal that the decline will likely be temporary as early-adopter sales peak and mass-market interest finds its footing.

Driving the news: The 2024 Mobility Consumer Index (MCI) from EY shows that only 34% of U.S. consumers planning to buy a car in the next two years are considering an EV. That's down from 48% a year ago. 

• But if we look back to the 2022 index, EV purchasing intent was at 29%—a net gain of 5% over the last two years.

What they’re saying: “While we’ve seen substantial increases in interest and purchasing of EVs since 2020, this year’s MCI shows dips in demand for the first time,” says Steve Patton, EY Americas Automotive Leader. “This is due partly to a lack of consumer education around the long-term value of an EV and maintenance requirements versus traditional ICE vehicles.”

Why it matters: Despite massive federal investments, including billions for charging stations and consumer tax credits, some buyers remain hesitant. The two biggest concerns? Battery replacement costs and charging accessibility.

• 26% of U.S. buyers see costly battery replacements as a major hurdle. In reality, EV batteries last 10-20 years, according to J.D. Power—comparable to the longevity of ICEs.

• Fewer buyers are worried about finding charging stations (23% in 2024, down from 34% in 2023). While charging infrastructure is still a top concern for mass adoption, this change in perception is meaningful. On top of that, many OEMs are accelerating and improving vehicle-to-charger compatibility.

Bottom line: As consumers come to understand battery technology better and with more convenient charging infrastructure arriving, interest will likely rebound in the long run. For EV retailers, right now, it’s a matter of easing concerns, improving experiences, and making the case for the long-term value of EV ownership.

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