And it's not range anxiety.
It wasn't so long ago when a majority of Americans ruled out buying an electric vehicle as their next car due to range anxiety. The fact that EVs like the all-new Porsche Taycan are smashing sales expectations is proof consumers are more open to battery electrics than ever before. But there's one thing about them that still concerns a majority of buyers, according to a recent survey from OC&C Consultants.
Reuters reports the annual survey's latest findings reveal consumers are worried about the price of EVs more than range. Typically, they cost more than combustion engine vehicles because of higher battery prices, which manufacturers pass down to consumers. But the report makes something else very clear: the need for government EV subsidies, like the current $7,500 tax credit, to help bring down costs.
OC&C surveyed over 7,500 global car buyers between December and January and points out that its study received no outside funding. The Biden Administration is aiming to increase EV buying subsidies, but nothing has been finalized yet. Still, this should be excellent news for automakers like GM, Volvo, and others who've committed to an all-electric future. Tesla, already the world's most valuable automaker, is reportedly considering a new entry-level $25,000 model to broaden its customer base, though it could be for China only.
The survey also found that in the UK, France, and Italy, over half of consumers said they'd consider a battery-electric as their next car.
In the US and Germany, nearly half of respondents said the same. This translates to a significant increase over last year's survey, especially in the US and UK. The willingness to buy an EV increased 61 and 81 percent, respectively. The emphasis on price can't be missed. A total of 69 percent said they wouldn't be willing to pay more than a $500 premium for an EV over a gas-powered vehicle. This won't be possible, at least for the foreseeable future, without government subsidies.
Countries, mainly in Europe, which have introduced generous subsidies have seen EV sales increase at faster rates compared to those with less generous amounts. It's a very simple equation to understand.