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Insight of the Day: Why 44% Of Potential Electric Car Buyers Are Postponing A Switch To EVs

Findings:

  • A McKinsey study shows that 46% of EV owners in the U.S. would consider switching back to gas-powered cars.

  • The main reasons for switching back include the high total cost of ownership, inability to charge at home, and the stress associated with charging.

  • Despite this, global interest in EVs is increasing, with 17.6% of respondents planning to buy a BEV for their next car.

  • The main barriers to EV adoption are high cost, charging concerns, and range anxiety.

  • Consumer expectations for EV range have increased, with an average of 291 miles now expected.

Key takeaway:

While there's growing interest in EVs, concerns about cost, charging infrastructure, and range are hindering wider adoption. Addressing these issues is crucial for accelerating the transition to electric vehicles.

Trend:

There's a growing demand for longer-range and more affordable EVs, highlighting the need for continued innovation in battery technology and charging infrastructure.

Conclusions:

  • Improving charging infrastructure, especially in urban areas, is crucial to alleviate concerns and increase EV adoption.

  • Developing more affordable EVs with longer ranges will be key to attracting more consumers.

  • The next generation of EVs needs to address these issues to meet consumer expectations and accelerate the transition to electric mobility.

Implications for brands:

  • Automakers should prioritize developing affordable EVs with longer ranges to meet consumer demands.

  • They should invest in expanding and improving charging infrastructure, particularly in urban areas.

  • Brands need to effectively communicate the benefits of EVs and address concerns about cost, charging, and range to attract more consumers.

  • Offering incentives and educational programs can help overcome barriers to EV adoption and drive market growth.

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