Over 40% Of New Car Buyers Are Considering An Electrified Vehicle

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Over 40% of those in the market for a new car are thinking about buying an electrified car, according to the latest EY Mobility Lens Consumer Index. Note that this means a fully electric car, a plugin hybrid, or a conventional hybrid without a plug — a big difference from the fully electric vehicles many headlines and statements on this research implied the research was covering. The four-chapter report/article detailed that environmental issues and green consciousness are ranked as the #1 influence on EV buyers — the same as CleanTechnica surveys and EV driver reports have found for several years. The Covid-19 pandemic also played a key role in fueling the push for electric vehicles.

The article shared some of the largest shifts in both buying intentions and motivations among consumers across 13 major international markets. 41% say they intend to buy a new car and are considering an electrified vehicle. 66% of that 41% will do so within the next 12 months, which is an 11% increase from the number recorded during the initial wave of the pandemic in 2020.

Key Points From Each Chapter

The article shared some of the key trends highlighted by the survey and what their implications might be for OEMs and dealers in the new post-pandemic market. Each section is separated into chapters and I’m going to briefly share the key thoughts from each chapter.

Chapter 1

This chapter focused on the fact that non-work-related travel will be close to pre-pandemic levels even though work travel is still down. One question posed was whether or not this could indicate a secular change in work-related mobility. For millions, working from home became normal during the pandemic and the survey suggested that it’s here to stay. This idea — that it’s here to stay — is being reflected in some recent headlines. Fast Company reported that companies need to embrace remote work or prepare to lose more than top talent. The article touched upon a few other headlines, such as these three:

The article advised that employers need to embrace a remote workplace even if they don’t need to and that if they do it right, it could solve the problem of having a team that just doesn’t want to go back into the office. EY noted in its article that people intend to take fewer work-related journeys but the ones they do take are longer in duration. The average future weekly travel time is up to 9.2 hours from 9.0 hours. Perhaps workers moved further from the workplace or even out of town.

That chapter also pointed out that public transportation isn’t doing so well since the car is thought of as a Covid-19 safe location and the most convenient mode of choice. For me personally, I’ve taken to using services such as Instacart to have my groceries delivered instead of Ubering to the store. For others without access to a vehicle or reliable public transportation, I’m sure they have made adjustments as well. However, I have taken a few trips to just get out of the house, so I’m seeing these stats reflected in my own life and actions.

Chapter 2

This chapter focused on the beckoning buying boom, noting that half of all of the survey respondents planned on buying a car in the near future. Two-thirds of those plan to do so in the next year. That number is up 17% from the previous figure recorded at the end of the first wave of the pandemic in the EY Mobility Consumer Index Study.

There’s also been a shift in car ownership. Over a third of those who don’t own a vehicle are intending to buy one. This is up 7% on the first wave study.

This chapter also pointed out that sales of alternative powertrain vehicles are expected to grow, with around 42% of those buying wanting to buy either an EV or a hydrogen-powered vehicle — 90% of them within two years.

53% of these potential EV buyers said that it’s their personal responsibility to reduce their environmental impact.

Chapter 3

This chapter focused on costs and charging. The article noted that consumers seem confused. EY named the factors that inhibit respondents from buying an electric vehicle (EV) and the cost was the top factor, at 50%. That was followed by range, at 33%, which was followed by charging infrastructure, at 32%. Despite that, over a quarter regarded these same factors as incentives for buying an EV.

The article compared the top 5 motivations to purchase with the top 5 concerns and found some interesting things.

  • Motivation: Environment 49%;  Concern: Cost 50%
  • Motivation: Monetary incentives/subsidies 29%;  Concern: EV range: 33%
  • Motivation: EV range: 28%;  Concern: Charging infrastructure 32%
  • Motivation: Charging infrastructure 28%;  Concern: EVs take too long to charge 28%
  • Motivation: Cost of ownership 26%;  Concern: More comfortable with ICE vehicles 27%

Confusing, eh? This seems to show that a lot of people know a lot about EVs but a large portion of the population clearly doesn’t.

Chapter 4

The last chapter explored the future of mobility as well as the future of dealers and OEMs. The article noted that it is clear that some of the ways we live, work, and travel will most likely be permanently changed, and pointed out that going back to normal as if nothing happened last year is hard to believe. I have neighbors that are scared of going to the store, for example. Some people may not want to board buses, trains, or other types of public transportation.

One challenge I see for traditional OEMs selling EVs is the dealership model itself. For many consumers, the overall dealer experience is filled with lies, scams, and insane fees. If an OEM wanted to start selling EVs, it would need to find a way to give dealers an incentive for selling them so they don’t scam customers. An example of a customer being scammed in such a way can be found here.

The survey is enlightening and informative and you can read the full report on it here.


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Johnna Crider

Johnna owns less than one share of $TSLA currently and supports Tesla's mission. She also gardens, collects interesting minerals and can be found on TikTok

Johnna Crider has 1996 posts and counting. See all posts by Johnna Crider