A recent study by McKinsey & Co. has revealed a concerning trend among US electric vehicle (EV) drivers: nearly half are considering switching back to gas-powered vehicles. The survey, which included 30,000 respondents from 15 countries, found that 46% of US EV owners are likely to return to driving gas-powered cars. The primary reason cited for this potential shift is the lack of public charging infrastructure, with 35% of respondents stating that the current infrastructure is “not yet good enough for me.” Additionally, 34% of respondents noted that the total costs of EV ownership were “too high.”
These findings come at a critical time as President Joe Biden announced in March the strictest regulation on vehicle emissions to encourage the auto sector’s transition to electric cars. However, while the United States has been facilitating a market for more EV sales, the infrastructure has been lagging. In the landmark 2021 Infrastructure Investment and Jobs Act, lawmakers approved $7.5 billion to construct 500,000 public charging stations for electric cars nationwide. However, only eight public EV-charging stations have been deployed to date, receiving criticism from both sides of the aisle. Transportation Secretary Pete Buttigieg has stated that the administration plans to build 500,000 chargers by 2030, but critics argue that this is not enough to meet the growing demand for EVs.
While EV prices have been falling, particularly for used ones, the lack of charging infrastructure remains a significant barrier to widespread adoption. According to data from iSeeCars, used EV prices were, on average, 8% lower than the average price for a used gas-powered car. However, despite these challenges, the EV market is expected to stabilize in the next couple of years. According to S&P Global Ratings, modest demand growth will range between 1% and 2% from 2024 to 2026.
This news comes as a blow to the Biden administration’s efforts to promote EV adoption and combat climate change. The lack of charging infrastructure and high costs of EV ownership are significant barriers to widespread adoption, and the administration must address these issues to achieve its goals.
In addition to infrastructure woes, a recent study by automotive research firm J.D. Power has highlighted quality issues with EVs. The study tracks responses from nearly 100,000 purchasers and lessees of 2024 vehicles within the first 90 days of ownership and, for the first time, incorporates repair visit data. Overall, internal combustion engine (ICE) vehicles averaged 180 problems per 100 vehicles (PP100), while battery electric vehicles (BEVs) averaged a whopping 266 PP100, 86 points higher than ICE vehicles.
Automakers have typically claimed that EVs are generally less problematic and require fewer repairs than ICE vehicles because they have fewer parts and systems. However, J.D. Power’s study, with newly incorporated repair data, shows that EVs, as well as plug-in hybrid electric vehicles (PHEVs), require more repairs than gas-powered vehicles in all repair categories. “Owners of cutting-edge, tech-filled BEVs and PHEVs are experiencing problems that are of a severity level high enough for them to take their new vehicle into the dealership at a rate three times higher than that of gas-powered vehicle owners,” wrote Frank Hanley, senior director of auto benchmarking at J.D. Power, in the study.
J.D. Power’s study reported no notable improvements in BEV quality this year, and that has to do with the biggest name in the EV space — Tesla. Typically, the gap between Tesla’s quality and that of legacy automakers’ EVs has been wide, with Tesla’s score better than other automakers. But that disparity has narrowed, with Tesla’s score and traditional automakers’ average scores for EVs standing at 266 PP100. “The removal of traditional feature controls, such as turn signals and wiper stalks, has not been well received by Tesla customers,” J.D. Power said, which has led to Tesla’s score worsening in the latest model year (to 266 from 253 in 2023).
Initial quality issues with EVs come as demand for EVs in general in the US has slowed. Obstacles like lack of charging infrastructure, range anxiety, and elevated costs (which are coming down) have hurt EV adoption. Adding quality concerns and high repair costs to the ownership bill will not help the electrification of the nation’s fleet of vehicles, which is among the top priorities for the White House.
A recent McKinsey consumer pulse survey also found that 46% of Americans who own EVs are considering going back to ICE vehicles, a surprising stat given the overall global percentage was 29%. Looking across brands in general, J.D. Power’s study said Ram, Stellantis’s truck brand, topped the overall rankings list with a 149 PP100 ranking, with Chevrolet, Hyundai, Kia, and Buick also near the top. Porsche, at 172 PP100, beat out all premium brands, ahead of Lexus and Genesis. On the flip side, Polestar, Dodge, Tesla, Rivian, and Volvo (tied with Audi) were the worst in terms of overall quality, with pure EV brands like Polestar, Rivian, and the aforementioned Tesla dragging down EV rankings.
In conclusion, while the EV market continues to grow, the lack of charging infrastructure and high costs of ownership remain significant barriers to widespread adoption. The Biden administration must address these issues to achieve its goals of promoting EV adoption and combating climate change.
Source: theepochtimes.com, washingtonpost.com, carscoops.com
