As electric vehicle (EV) sales decline due to consumer reluctance stemming from factors such as charging inconveniences, companies are intensifying incentives to stimulate sales, as per a recent report.
Released on April 8 by Gallup, a report revealed that 44% of respondents indicated they are “seriously considering buying” or “might consider in the future” purchasing an EV, representing an 11-percentage-point decrease from 55% last year and falling below the majority threshold of 50%.
Further analysis showed that the proportion of adults seriously considering an EV purchase dropped to 9%, down 3 percentage points from last year, while those potentially considering a purchase decreased by 8 percentage points to 35%.
Although the percentage of individuals currently owning an EV increased from 4% last year to 7% this year, those expressing unwillingness to purchase electric vehicles rose from 41% to 48%.
In terms of income brackets, 61% of respondents earning less than $40,000 annually stated they would not buy an EV, compared to 44% of those earning $40,000 to $99,999 and 41% of those earning $100,000 or more.
Across different age groups, individuals aged 65 and older exhibited the highest reluctance to purchase an EV (63%), followed by those aged 50-64 (54%), 30-49 (41%), and 18-29 (35%).
In terms of political affiliation, 69% of Republican respondents expressed reluctance to purchase an EV, surpassing Democrats (27%).
Gallup noted that the survey results, conducted from January 1 to 20, align with recent decisions by some automakers to scale back investment in EVs due to market growth falling short of expectations.
According to Edmunds and JD Power, primary reasons for consumer reluctance toward EVs include concerns regarding charging infrastructure, driving range, and pricing, with 47% preferring to purchase an EV priced below $40,000.
In response to this tepid sentiment toward EVs, automakers have expanded their EV incentives, starting with Hyundai and Kia’s $7,500 discount and 60-month no-interest promotion last month.
Kia increased its discount for the EV9 from $3,750 last month to $7,500 this month, while Lucid is offering an additional $5,000 across all models.
Tesla, faced with record-high Model Y inventory, is providing discounts ranging from $3,000 to $5,000 depending on the trim, with the $7,500 tax credit reducing the RWD trim to $34,340 and the Long Range to $37,490.
Subaru has slashed its three-year lease program for the 2023 Solterra electric SUV by 40%, dropping from $399 to $241 per month with no down payment.
Despite the government aiming to replace 60% of new vehicles with EVs by 2030, Gallup’s findings indicate that only 16% of consumers have owned or seriously considered purchasing an EV in the last two years, suggesting significant shifts in consumer EV preferences are necessary to achieve the milestone.
BY NAKI PARK, HOONSIK WOO [park.naki@koreadaily.com]
