EV Holdouts Growing, Study Shows

Just because automakers are building them, it doesn’t mean they will come. Maybe ever. Consideration for electric vehicles is running short of juice according to the J.D. Power E-Vision Intelligence Report released Monday.

The proof is in the stagnating numbers. EV marketshare shot up from 2.6% in Feburary 2020 to 8.5% in February 2023, but then hit the skids in March, retreating to 7.3%. However, J.D. Power sees this retrograde as more than a simple seasonal speed bump, but rather a building brick wall.

“Although some month-to-month volatility is to be expected, a closer look at the barriers to EV adoption shows that many new vehicle shoppers are becoming more adamant about their decision to not consider an EV for their next purchase,” the report stated.

Proof of an increasing number of consumers digging in their heels against opting for an EV, according to the report the percentage of U.S. consumers who say they are “very unlikely” to consider an EV for their next vehicle purchase has been growing steadily for the past three months, reaching 21% in March, up from 18.9% in February and 17.8% in January.

The percentage of those consumers saying they’re “very likely” to consider an EV has stagnated at around 26.9% for the last few months, according to the report.

What’s bothering those consumers rejecting EVs is the daily double that’s been on the board for a long time—concern about an adequate recharging infrastructure and price. Those are the top two reasons cited in the J.D. Power study, but consumers also said they’re holding back on making the switch because of related issues that include range anxiety, time required to charge and power outage and grid concerns.

A good many are also confused about federal tax credit rules in large part, because they’re in flux, leading to uncertainty if there will be sufficient tax breaks to make an EV affordable.

Demographics in any study like this are always a key consideration, but in this case they’re both surprising and not surprising.

What’s not surprising is the majority of Baby Boomers and Pre-Boomers aren’t considering EVs, according to the study. What is suprising to J.D. Power researchers is fully one-third (33%) of Gen Z shopper, what the study’s authors term “the future of the marketplace,” say they’re “somewhat unlikely” or “very unlikely.”

J.D. Power defines Pre-Boomers as those born before 1946, Boomers born 1946-1964 and Gen Zs as born between 1995 and 2004.

The case could be made none of this should be surprising. Both the auto industry and federal government have set aggressive timelines for a mass conversion from internal combustion engine vehicles (ICE) to an all electric future.

But for many people, old habits are not only hard to break, but not necessarily habits they want to break. They’re comfortable and predictable. After all, a gas station is never far away and it takes only a couple of minutes to fill up.

While the model is most EV charging would be done at home, those not ready to switch express concern, or even doubt, they’d find a recharging station along their route when on a long road trip, and even if they do, will the station be operational? Besides, what do you do while waiting 30 minutes or so?

It’s when change seems forced that pushback can be the most forceful.

In the not so distant past when the government set high fuel economy standards to force automakers to produce small cars with small engines when consumers clearly showed, as they do today, a preference for SUVs and other larger vehicles, legendary retired auto executive Bob Lutz would often take issue using one of his favorite similies when he gave speeches.

It went something like this. Forcing automakers to build compact cars to improve fuel economy is like requiring the textile industry to produce only small sizes to curtail obesity.

For sure, protecting the environment is a key driver of legislation promoting an EV conversion and for a good many consumers, but for others, protecting the status quo is more important to them, if it makes life easier, predictable and more affordable.

When fuel prices reached record highs in 2021, interest in electric and hybrid electric vehicles perked up. Now that gas prices have retreated, not so much.

What’s not retreating is the price of electric vehicles. In fact, General Motors Co. is killing the Chevrolet Bolt EV and Bolt EUV by the end of the year—its most affordable electric vehicle. The company does tout it will have a full line of EVs but while prices have not yet been announced, chances are they’ll never match the Bolt’s sticker.

Not to pick on GM but back in December during an Automotive Press Association “fireside chat” with GM chair and CEO Mary Barra we had a chance to her about the possibility that some consumers will never consider an electric vehicle.

“Maybe a small fraction,” offered Barra. “There’s a lot of forces that are going to be driving people to electric vehicles. They’re fun to drive. They’re great vehicles. I’ve been driving a Bolt and then we own a Hummer and you get used to not going to the gas station really quickly. I think as it becomes more mainstream I challenge there’s people going to hold out.”

Here we are, almost a half-year later and the J.D. Power study would indicate the hold outs are holding on—digging in, seeming to indicate hell will freeze over, before they come out their ICE age.