More U.S. consumers want EVs but prices are a concern

(Reuters) – More U.S. 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 on Wednesday.

Nearly 7 in 10 prospective EV buyers in the United States expect to pay less than $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 (NASDAQ:) Inc’s popular Model Y starts at $65,990, while legacy automaker Ford Motor (NYSE:) Co’s Mustang Mach-E begins from $46,895, according to the companies’ respective websites.

Despite the pricing pinch, the intent to purchase 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 refueling costs is driving EV purchase intent around the world,” Deloitte LLP vice chair and U.S. automotive leader Karen Bowman said.

The survey also showed that 30% of U.S. consumers do not trust anyone with the data from their vehicles, signaling a significant challenge for manufacturers looking to further monetize 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.