Americans continue to back away from EVs: Survey
Enthusiasm for electric vehicles (EVs) among Americans continues to decline, according to a poll published Monday.
An Ernst & Young survey of approximately 1,500 Americans found that 34% intend to buy an EV within the next two years, a 14% drop from 2023. Respondents’ primary concerns focused on the high cost of EVs — including high battery replacement costs — as well as the poor charging infrastructure and limited ranges.
The survey echoed one from June that found that 46% of EV owners in the US are likely to buy a gas-powered vehicle for their next car purchase.
The poll, conducted by McKinsey & Co among 30,000 participants across 15 countries, found that 29% of EV owners globally are also considering internal combustion engine (ICE) cars — which run on fuel — for their next vehicle purchases. Twenty-one percent of respondents worldwide said they have no plan to ever switch to EVs, while 38% of ICE vehicle owners said they are considering purchasing EVs or plug-in hybrid electric vehicles (PHEVs).
This lack of enthusiasm toward EVs has stalled EV production at some of the world’s largest automakers, who are struggling to cut their losses after betting big on electric cars.
Nevertheless, the Biden-Harris administration continues to relentlessly push EVs despite decaying demand. The Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) both finalized emissions standards this year that will force automakers to increase EV production.
Poor charging infrastructure
In November 2021, Joe Biden’s Bipartisan Infrastructure Law earmarked $7.5 billion in taxpayer funds to build a network of 500,000 EV charging stations across the country. To date, the Department of Transportation (DOT) has built seven stations.
High costs
EV owners have complained about the high costs of replacing electric car parts, particularly the batteries.
One Florida man received a quote of $29,842.15 to replace the battery in his Chevrolet Volt. According to reports, the dealership confirmed the estimate and said the price was due to the battery being hard to obtain and the car’s dated technology.
But car parts are not the only issue.
Analyses show that because electric cars require so much electricity, EV owners are likely to pay more per mile than gas vehicle owners. According to a study published last year, “[t]ypical mid-priced ICE (internal combustion engine) car drivers paid about $11.29 to fuel their vehicles for 100 miles of driving. . . . That cost was around $0.31 cheaper than the amount paid by mid-priced EV drivers charging mostly at home...”
The cost difference becomes even starker when factoring in EV drivers who need to recharge frequently at charging stations at an estimated cost of $14.40 per 100 miles.
High registration fees
EVs become more expensive still considering that some governments seek to charge EV owners additional fees to compensate for lost fuel taxes.
Several US states that pushed for “sustainable” and “environmentally friendly” vehicle alternatives are now imposing additional registration fees on EV owners. Illinois Democrats, for instance, proposed charging EV owners a $1,000 annual registration fee to recoup the loss in gasoline taxes. After intense backlash, however, the Prairie State settled on charging EV owners a $251 annual registration fee, $100 more than their ICE counterparts.
At least 19 states have imposed an extra annual registration fee for EVs ranging from $50 to $235, with Blue states such as Michigan and Georgia at the higher end.
Higher insurance premiums
EV repair costs are approximately 25% higher than their gas-powered counterparts after rising 33% in the first quarter of 2023, reported The Telegraph. This, in turn, has led to a 72% jump in average EV insurance costs compared with 29% for gas vehicles. Some EV owners are receiving insurance quotes of over $120 per week, while others are receiving quotes double or even triple the year before.
Other car insurers have stopped insuring EVs altogether. John Lewis Financial Services stopped offering insurance for EVs last year, and Aviva only recently restored insurance products for the Tesla Model Y after canceling them earlier this year.
“The battery is an extremely expensive component of an electric vehicle and until we find efficient ways of dealing with it we have the challenge of high premiums for electric vehicles, which nobody wants,” said Thatcham Research CEO Jonathan Hewett.
