EV hype slowdown: Fewer Americans say they're likely to buy one

(NewsNation) — The hype around electric vehicles is slowing down.

Just 18% of Americans say they are “very likely” or “likely” to buy a new or used EV, down from 23% last year, according to a new AAA survey released Thursday.

Meanwhile, 63% of respondents don’t plan to buy an EV for their next car, up from 53% in 2023.

The drop in enthusiasm is partially because the early adopters who wanted EVs already have them, said Greg Brannon, director of automotive research at AAA.

“The remaining group of people who have yet to adopt EVs consider the practicality, cost, convenience, and ownership experience, and for some, those are big enough hurdles to keep them from making the jump to fully electric,” Brannon said in a statement.

Cost remains the biggest hang-up, with 60% of respondents to the AAA survey citing higher EV prices as a concern. Nearly just as many, 57%, said the high cost of battery repair was one of their main hesitations.

EVs have become more affordable in recent years, but they’re still costlier than gasoline models. In April, electric vehicles cost an average of $55,252, roughly $6,700 more than the average for all vehicles, according to estimates by Kelley Blue Book.

Increased competition between automakers and more efficient manufacturing processes will help drive EV prices down, but it remains to be seen which price point, if any, will convert skeptics en masse.

Carmakers like Tesla and Ford are reportedly developing EVs that would cost as little as $25,000. A growing used EV market will also offer extra affordable options.

In the meantime, more Americans are choosing hybrids as a compromise between gas-powered and fully electric cars. Hybrid market share nearly doubled from 4.9% in 2022 to 9.7% in 2023, according to Edmunds.

Roughly a third of those surveyed by AAA said they’re likely to buy a hybrid. Most respondents said they’re leaning that way because hybrids are better than EVs for long-distance travel and not as dependent on public charging.

Other recent polls mirror those findings, suggesting EV range anxiety remains a major hurdle for consumers.

Analyses have found EV enthusiasm varies by politics and where you live. For example, Republicans are significantly less likely than Democrats to say they’re considering buying an EV, according to Gallup.

The AAA poll of more than 1,100 adults was conducted April 4 to 8.

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