Charging Ahead: Putting the U.S. Demand for Electric and Hybrid Vehicles in Context
Are U.S. automotive consumers ready for an all-electric future?
GBK's latest study, in partnership with Wedbush Securities Managing Director Dan Ives and automotive industry expert Brent Dewar, examines the current state of EV ownership and consideration, the shifting profiles of EV and hybrid buyers, and the key opportunities for the industry.
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Key Findings at-a-Glance:
Half of U.S. households are considering an EV or hybrid EV as their next vehicle
EV automakers in the US have targeted tech-savvy and design-conscious early adopters, however, a broader swath of U.S. households are now considering EVs or hybrids. These more mainstream, budget-conscious potential buyers will dominate the next wave of adoption.
1 in 5 U.S. households (22%) are only willing to consider an EV or hybrid for their next vehicle with 31% being open to any vehicle type. Less than half of Americans (47%) say will only consider gas-powered cars.
Potential EV considerers are willing to pay on average $7,650 more for an EV compared to a gas-powered vehicle with similar features. In contrast, current EV owners are willing to spend $10,000 more.
Potential EV considerers report a median budget of $50,000 for their next vehicle, compared to $59,000 for those who already own an EV.
Quotes about the report:
“There is naturally a major debate going on in the auto industry and among investors around the pace of EV adoption, tax incentives, and what the long-term strategy is for a more competitive EV landscape to convert consumers over the next few years towards EVs.” – Dan Ives, Managing Director of Equities Research at Wedbush Securities
“EV demand is out there, it just looks different today. A new study from GBK Collective found that half of US car consumers were considering either an electric or a hybrid car for their next vehicle purchase.” – Nora Naughton, Senior Auto Reporter, Business Insider
"Contrary to the stagnant EV market depicted by some industry watchers, our study indicates the next wave of adoption for hybrid and EVs is rapidly approaching. It is also clear that consumers considering an EV or hybrid are more pragmatic and cost-conscious than current EV owners.” – GBK Co-Founder Eric Bradlow, Vice Dean of Analytics and Chair of the Marketing Department at The Wharton School
“As automotive brands strive to attract the next wave of EV buyers, understanding how price, features, experience and other factors influence evolving consumer decisions is paramount.” – Brent Dewar, former senior automotive executive and GBK advisor
“The auto market is navigating a tricky route as car makers including Ford and GM are pulling back on ambitious EV manufacturing plans and Tesla is warning of a slow down, while Hyundai, Kia and others are powering ahead. GBK Collective queried 2,000 Americans to understand their car shopping preferences, looking at existing EV owners and those with combustion engine vehicles.” – Lisa Stiffler, Senior Reporter, Geekwire
“We believe that the market is ripe for much greater adoption for battery-powered vehicles should the industry do the work to listen to consumers and better understand the market." – GBK President Jeremy Korst