New report reveals dampening consumer interest in EVs

The latest Gallup report sheds light on the current state of the electric vehicle (EV) market, which has led to some automakers scaling back their EV investments. The report’s findings align with this trend, indicating that the EV market’s growth has not met initial expectations.

The U.S. federal government’s ambitious goal for EV production to comprise 60% of new vehicles by 2030 may require a significant shift in consumer behavior. Currently, only 16% of Americans are engaged with the EV market, either as owners or potential buyers, a figure that has remained stable over the past two years. However, this also presents an opportunity for a significant increase in consumer interest, potentially leading to rapid growth in the EV market. 

Moreover, the report reveals that while EV ownership is currently skewed towards upper-income Americans- with 14% owning an EV, an increase from the previous year- this trend could change. Interest among lower-income groups is decreasing, with 61% expressing disinterest in EVs. However, with the right policies and incentives, EVs could become more accessible to a wider range of income groups, potentially bridging the current gap.

Although EV ownership does not vary much across age groups, older Americans show the slightest interest. Political ideology also influences EV consideration, with left-leaning individuals being more inclined towards EVs than their right-leaning counterparts. Despite the environmental benefits of EVs in reducing greenhouse gas emissions, there is not a strong correlation between concern for climate change and EV ownership. 

The market data paints a sobering picture of the EV market in the U.S., with no significant growth in consumer interest. This stagnation raises concerns about the feasibility of meeting the Biden administration’s emissions reduction targets through increased EV adoption. It suggests that a revision of these goals may be necessary, depending not only on consumer behavior but also on the political climate and future administration policies, underlining the importance of a supportive environment for EV adoption.