Are people interested in electric cars
More Americans Would Buy an Electric Vehicle, and Some Consumers Would Use Low-Carbon Fuels, Survey Shows
Overall, our latest survey found that more than a third of Americans would definitely or seriously consider buying or leasing an electric-only vehicle) if they were to buy a vehicle today. Among their reasons: More than 3 in 10 U.S. adults say that it costs less to charge an EV than to refuel a gas car (33 percent), overall lifetime costs are lower (31 percent), and maintenance costs are lower (28 percent).
The survey shows that there is clear interest among Americans in reducing costs for transportation and lowering their environmental impact, says Quinta Warren, PhD, CRs associate director of sustainability policy. It underscores some key concerns, but fortunately, many of these barriers to owning a battery-electric vehicle EV can be addressed through experience and education.
Theres no denying soaring demand for electric vehicles and hybrids. Gas prices are at record highs, and Americans increasingly are turning to electric vehicles. EV sales rose 76 percent in the first quarter, compared with the same period last year, according to Cox Automotive, an information and services company. EVs promise reduced operating costs, and there are more choices on the market, with more models from various categories on the way.
Consumer Reports conducted the survey to better understand demand and awareness of battery EVs and low-carbon fuels. It was partially funded by the environment-focused philanthropic group Breakthrough Energy and the Energy Foundation, a nonprofit organization dedicated to a safe, equitable economy powered by green energy. It was fielded Jan. 27 to Feb. 18, 2022, when the national average price for gasoline ranged from $3.34 to $3.52 per gallon. The price of gas has surged to a national average of about $5 per gallon for regular as of late June.(Download a PDF of the survey report.)
The survey results illustrate an EV landscape in transition, as more Americans become aware of the purchase option in a societal atmosphere of increasing concern about climate change and the role fossil fuels are playing.
CR is committed to supporting sustainable transportation, reducing harmful emissions, and saving drivers moneyso much so that fuel economy is a key factor in the Overall Score that we give to every car we purchase and test. As a result, the Overall Scores elevate good all-around models that are energy-efficient, helping shoppers make their purchase decisions and encouraging automakers to prioritize energy efficiency. CR also launched a Green Choice designation last year using vehicle emissions data from the Environmental Protection Agency, highlighting the vehicles that are among 20 percent lowest contributors to smog-forming and greenhouse gas emissions for their model year. You can find these Green Choice vehicles on our website and in our print publications. They are denoted by a green leaf icon wherever our ratings are presented.
The Target Market for Electric Cars: Who Buys Them and Why?
Electric cars are becoming popular, as people become increasingly concerned about the environment and their carbon footprints. But this isnt the only reason people are attracted to electric cars.
While some are drawn to the environmental benefits of electric cars, others appreciate the cost savings they offer.
So, whos buying these cars? And why are they choosing electric over other types of vehicles including hybrid vehicles?
In this article, we will explore the target market for electric cars and discuss some of the reasons why people are making the switch to environmentally friendly transportation.
What Do Consumers Look for in An Electric Car?
When looking for an electric car, the target market tends to consider a few key factors.
First, they want an environmentally friendly vehicle. All Battery Electric cars fall into this category as they, unlike hybrids, have no fuel engine. This is one of the reasons why people buy a Tesla.
Second, they want a car that is efficient and will save them money in the long run. Electric cars are cheaper to operate than IC Engine cars, and this is one of the main reasons people choose them. Electricity is cheaper than gasoline and electric cars need less maintenance.
Third, people look for a good charging network. One of the challenges of electric cars is range anxiety, or the fear that the car will run out of power before reaching the destination.
To combat this, many companies are investing in charging infrastructure. When considering an electric car, consumers want to be sure that there are charging stations available so they can easily recharge their car.
Finally, consumers look for an electric car that offers a sufficient range. Electric vehicle technologies have made enormous progress in recent years, and many now have ranges that are comparable to gas-powered cars.
Still, the anxiety we discussed in the previous paragraph can be a barrier for some people and they will often opt for a hybrid car, like a Toyota Prius, instead of a pure electric vehicle.
Who Is the Target Market for Electric Cars?
One of the best ways to understand the target market for electric cars we need to understand why some people look at an electric car as their next car instead of a conventional IC Engine car or even a hybrid car.
What motivates them to switch to an electric car when problems with electric vehicles have as yet not been fully ironed out?
When we understand this motivation, we get the following segments of the target market for electric cars:
- People who worry about air pollution and climate change
- People who are looking for substantial fuel cost savings
- People who want to take advantage of government incentives
- People who have a short daily commute
- People who want a car with low maintenance costs
Lets look closely at each of these market segments.
#1. People who worry about air pollution and climate change
One of the main reasons people are interested in electric cars is because they want to do their part to reduce air pollution and combat climate change. Electric cars produce zero emissions at the location of the car, so they are much better for the environment than gas-powered cars.
The target market for electric cars includes people who are environmentally conscious and want to reduce their carbon footprint.
These consumers are willing to pay more for an electric car because they believe it is the right thing to do for the environment and the future of the planet.
#2. People who are looking for substantial fuel cost savings
With fuel prices rising continuously, people are always on the lookout for ways to save money on gas. Electric cars can offer substantial savings over their gasoline-powered counterparts.
Electricity is cheaper than gasoline, and electric cars are more efficient than gas-powered cars, so they use less energy. This means that people who switch to an electric car can save money on fuel costs over the life of the car.
#3. People who want to take advantage of government incentives
Many governments offer incentives to encourage people to switch to electric cars. These incentives can take the form of tax breaks, subsidies, free charging, or free parking.
Such incentives make electric cars more affordable for consumers and help to increase their deployment. This helps accelerate the transition to a low-carbon economy and reduces air pollution and greenhouse gas emissions.
#4. People who have a short daily commute
Often people who switch from gas to electric cars do so because they have a short daily commute. For such people, an electric car makes perfect sense because they can charge the car overnight and have a full charge for their commute the next day.
This target market for electric cars is motivated by the convenience of not having to stop at a gas station but also by the fear of their electric car running out of battery.
This segment of the target market for electric cars will often buy an electric car for their short daily commute but still hang on to their gas-powered car for longer trips.
#5. People who want a car with low maintenance costs
Electric cars do not have many moving parts, so they are much simpler than gasoline-powered cars. This means that they require less maintenance and have lower running costs.
Many people do not like the idea of having to take their car to the mechanic for regular maintenance, so they are drawn to electric cars because they require less frequent visits.
Conclusion
The transition from gas to electric cars is well underway, and the target market for electric cars is growing. People are motivated to switch to electric cars for a variety of reasons. These reasons give us a way to segment this very interesting market.
Many people make the switch from gasoline cars to electric cars because they care about air pollution and climate change. Others do so because they are looking for substantial fuel cost savings or because want to take advantage of government incentives
People who are worried about running out of battery, choose to use electric cars only for certain short drives like a short daily commute. And finally, people who are fed up with the regular maintenance required of IC engine cars also look at electric cars as a better alternative.
Most Americans Are Not Completely Sold on Electric Vehicles
Story Highlights
- 4% currently own electric vehicle, 12% are seriously considering purchase
- 39% say electric vehicles help climate change at least a fair amount
- Democrats most likely to own EVs and to say they help climate change
WASHINGTON, D.C. -- Americans adoption of electric vehicles is proving to be slow, as relatively few currently own one (4%) or are seriously considering purchasing one (12%). Another 43% of U.S. adults say they might consider buying an electric vehicle in the future, while 41% unequivocally say they would not.
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Electric vehicles, or EVs, were first invented in the 19th century, long before gas-powered vehicles came on the scene. They have become increasingly prevalent over the past decade, with the emergence of Teslas all-electric fleet of vehicles and traditional automobile manufacturers introducing their own electric models.
While EVs are significantly more expensive than conventional vehicles to purchase, proponents say the long-term savings on fuel and less upkeep of electric vehicles make them a better choice financially. In addition to cost, proponents of EVs say they help with climate change because they do not emit greenhouse gases and pollutants to the same degree that gas vehicles do.
Yet, this idea that electric vehicles help to address climate change is not universally accepted by Americans. While about four in 10 U.S. adults think using EVs helps address climate change a great deal (12%) or a fair amount (27%), roughly six in 10 believe it helps only a little (35%) or not at all (26%).
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These findings are from a March 1-23 poll, which was the first time Gallup asked these questions about electric vehicles.
Party Greatest Differentiator in Americans EV Use and Perceptions
U.S. adults party identification is the greatest differentiator in both their openness to owning EVs and their perceptions of the environmental impact that the use of such vehicles would have.
Current ownership of electric vehicles among partisans is 6% for Democrats, 4% for independents and 1% for Republicans. Democrats (22%) are also far more likely than both Republicans (1%) and independents (12%) to say they are seriously considering purchasing an EV. The majority of Democrats, 54%, say they may consider it in the future. Meanwhile, a substantial majority of Republicans, 71%, say they would not consider owning an electric vehicle.
Other demographic differences in current and potential EV ownership, though influenced by party, are sizable. Americans aged 35-54 are more likely than those younger and older to already own or be seriously considering buying an electric vehicle. However, young adults 18-34 are most likely to say they may buy one in the future.
Americans living in the Western U.S. and college graduates are more likely than their counterparts to report that they currently own an electric vehicle, are seriously considering the purchase or might in the future.
Likewise, U.S. adults with annual household incomes of $100,000 and over are more likely than those in lower income groups to already own or say they may own an EV. This may be a function of the higher price tag on electric versus gas vehicles.
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Americans who worry a great deal about global warming or climate change are most open to owning an electric vehicle now or in the future, with 79% saying they currently own one (5%), are seriously considering it (16%) or would at some point (58%). Conversely, 77% of those who are not at all concerned about climate change say they would never own an EV.
In addition to being more open to owning electric vehicles, Democrats are also more likely than Republicans to say the use of EVs helps address climate change. Just over two-thirds of Democrats think electric vehicles help a great deal (22%) or a fair amount (46%). Meanwhile, 55% of Republicans say they do not help at all, and 32% believe they help only a little bit. Independents are closer to Republicans than Democrats in their views.
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Bottom Line
While ownership of electric vehicles is on the rise in the U.S., the percentage of Americans who say they own one remains limited at 4%. Though they are often promoted as a key way to reduce carbon dioxide emissions and address the effects of climate change, the public remains largely unconvinced that the use of EVs accomplishes this aim.
The Biden administration has set a goal that half of all new vehicle sales be electric by 2030. The state of California has mandated that all new vehicle sales in the state by the year 2035 must be zero-emission vehicles, and major U.S. automakers are boosting EV production and, in some cases, phasing out gas-powered vehicles in the coming years.
Given these changes, it is unclear to what extent Americans will be able to choose between electric and gas-powered vehicles in the next decade and beyond, but a majority of Americans now say they are at least open to buying an EV in the future. With four in 10 U.S. adults unwilling to even consider switching from a gas to an electric vehicle, the plans of Biden, California and auto manufacturers could be challenging to achieve.
Previous Gallup polling has found that Americans arent always the best judge of their future behavior when it comes to technology. For example, as recently as 2000, a quarter of Americans thought theyd never own a smartphone.
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