J.D. Power: Half of U.S. buyers to have viable EV option in ’23

About half of new-car buyers in the U.S. could find an electric vehicle at the price and size they want and from their favored brand by the end of this year.

That’s the latest assessment from J.D. Power, which tracks price and availability trends through its monthly E-Vision Intelligence Report.

The prices and styles of EVs are more closely matching those of gasoline-powered models, J.D. Power found. Most automakers began their EV launches with high-end models, but now, increasing vehicle supply and generous incentives are making them more affordable for mass-market consumers, J.D. Power said.

“Price matters,” Elizabeth Krear, vice president of J.D. Power’s EV practice, told Automotive News. When there is an incentive or a certain manufacturer announces a price cut, “we immediately see the interest increase.”

Light-vehicle prices have trended down through the first quarter of this year, but the decline for EVs is much steeper than gasoline vehicles.

The average transaction price for an EV has fallen 7.5 percent from $60,791 in January to $56,214 in March, according to J.D. Power. In that same period, the average transaction price for internal combustion light vehicles dropped 2.5 percent to $45,274 from $46,412.

At the start of the year, consumers faced a 31 percent premium in the average transaction price to purchase an EV. That stands at 24 percent now, according to J.D. Power data.

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—Hannah Lutz