More US consumers want EVs but prices are a concern, Deloitte survey shows

NEW YORK: More US consumers want to buy an electric vehicle (EV) but are concerned about rising prices, while fewer aimed to purchase gasoline-powered vehicles, a survey by consulting firm Deloitte showed today.

Nearly 7 in 10 prospective EV buyers in the United States expect to pay less than US$50,000 for their next vehicle, according to the survey conducted between September and October 2022.

More than half of the respondents in the survey said a lack of affordability was the biggest concern when it comes to EV adoption, at a time when top EV makers are raising prices amid high inflation.

Tesla Inc's popular Model Y starts at US$65,990, while legacy automaker Ford Motor Co's Mustang Mach-E begins from US$46,895, according to the companies' respective websites.

Despite the pricing pinch, the intent to buy an EV is up 3 percentage points year-over-year in the United States, with an identical increase recorded for hybrid electric vehicles and plug-in hybrid electric vehicles, Deloitte said in its "2023 Global Automotive Consumer Study".

Internal combustion engine purchase intent dropped to 62% from 68%.

"Although historically high transaction prices are a significant challenge for consumers, a strong desire to reduce refuelling costs is driving EV purchase intent around the world," Deloitte LLP vice chair and US automotive leader Karen Bowman said.

The survey also showed that 30% of US consumers do not trust anyone with the data from their vehicles, signalling a significant challenge for manufacturers looking to further monetise the mobility experience.

Globally, consumers would rather pay for connected technologies upfront as part of the vehicle's transaction price or per use, compared with a subscription plan, the study said.