As governments continue to rethink their vehicle emissions regulations, buyers are rethinking what they want. drive.
New research from consultancy EY shows that buyers around the world are cooling off. electric cars and give combustion a second look.
Even people who were planning to go electric are now pausing and reconsidering their next move as policies change.
Half of car buyers plan to choose gasoline in the next two years
About half of global car buyers say their next purchase in the next two years will be a gasoline engine, according to the latest EY Consumer Mobility Index. That's up 13 percentage points from last year, and much of the change comes from people who previously leaned toward electric vehicles.
The study shows that interest in electric vehicles has fallen sharply, falling 10 points to just 14 percent. Hybrid Demand also fell, but only slightly – by five points to 16 percent.
And this shift is not just happening in the United States, although it is most pronounced there. Preference for burning fuels jumped 12 points in the Americas, 11 points in Europe and 10 points in the Asia-Pacific region.
Among buyers still looking at electric vehicles, a surprising number are now doubting themselves. EY reports that 36 percent are rethinking or postponing their plans due to recent geopolitical turmoil.
Policy change makes buyers hesitant
The reasons are easy to see. Recent policy changes – such as the fall of the US Tax incentives for electric vehicles and the EU relaxing its mandates are making buyers hesitant.
Automakers aren't helping either by reducing the number of EV options available. Add in brands that have over-promised electric models and failed to deliver, and it's no wonder buyers are wary.
EY points to several factors behind this shift. “Consumers are weighing the realities of policy changes, pricing pressures and patchy charging infrastructure. The long-term trend appears to be a move away from a purely electric approach (“E-only”) towards a more diversified future of automotive powertrains, with different vehicle technologies serving different customer needs,” said EY Global Aerospace, Defense and Mobility Leader Constantin M. Gall.
Buyers' concerns about the cars themselves have not gone away. According to EY, 29 percent said range anxiety was still a top concern, while 28 percent cited charging infrastructure and a further 28 percent cited battery replacement costs.
Range remains a real concern for many, even as more ultra-long-range electric vehicles come to market. Battery replacement cost are also lingering in buyers' minds, even though data shows EV packages often last longer than expected.
The study also shows that self-driving technology is not attracting buyers. Only 26 percent said they felt comfortable Level 3 or higher automation.
Most buyers—about 60 percent—like lower levels of automation, but concerns about accidents, technical glitches and high costs make them cautious.
No wonder that Car buyers are losing enthusiasm for dealerships. Only 41 percent now prefer to make a purchase in person, down from 61 percent last year.
EV buyers are the exception: They still prefer in-person visits to get help with charging, tech features and other issues unique to EVs.
