Although battery-electric vehicles are getting closer to price parity with their internal combustion siblings, the affordability factor is the main reason consumers are holding back on adopting electrification, according to a recent survey by S&P Global Mobility.
Although range anxiety and the charging network remain reasons to hesitate, a recent global survey of consumers showed that potential EV buyers are most concerned about the impact to their wallet. What’s more, this is not just a US-market phenomenon. It’s affecting consumers worldwide – even in regions where EVs have made significant market inroads.
Almost half (48%) of the 7,500 respondents globally consider EV prices to be too high, even though they understand that most EVs inherently carry a price premium. “Pricing is still very much the biggest barrier to electric vehicles,” according to Yanina Mills, senior technical research analyst at S&P Global Mobility.
Consumer sentiment toward buying an EV has cooled considerably over the last two years. This rise and fall are emblematic of an immature market segment, Mills said. That said, improved electric vehicle range, and the increased number of model choices, have moved down consumers’ list of reasons to avoid purchasing an EV.