As the electric vehicle (EV) market continues its steady growth, a new study indicates a significant shift in consumer sentiment. According to a report from Automotive News, by McKinsey & Co., 46% of American EV owners are contemplating a return to internal combustion engine (ICE) vehicles for their next purchase. This finding highlights growing concerns about EV infrastructure and ownership costs, challenging the perception of an inevitable all-electric future.
The primary reason for this potential shift back to gasoline-powered cars is the inadequate public charging infrastructure. Dr. Philipp Kampshoff, leader of McKinsey’s Center for Future Mobility, remarked, “I didn’t expect that. I thought, ‘Once an EV buyer, always an EV buyer.'” However, the reality appears more complex.
Many EV owners are frustrated by the slow rollout of charging stations, a critical element for the widespread adoption of electric vehicles. The U.S. Department of Energy’s National Electric Vehicle Infrastructure program has been slow to expand, leaving many regions underserved. Only 9% of study participants expressed satisfaction with the current public charging network.
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Besides charging infrastructure, high ownership costs and the limitations associated with long-distance travel are significant deterrents. The study found that these factors are pushing nearly half of U.S. EV owners to reconsider their next vehicle purchase. Kevin Laczkowski, senior partner and global co-leader of McKinsey’s Automotive & Assembly Practice, stated, “OEMs and suppliers now have to invest in multiple technologies. This is the ultimate uncertainty right now, like almost never before.”
The survey, which polled over 30,000 consumers across 15 countries, representing more than 80% of the global sales volume, reveals that 29% of EV owners worldwide are also likely to switch back to gasoline vehicles. Charging concerns are a common thread, with 21% of global respondents stating they have no interest in ever switching to an all-electric vehicle. Of those, 33% cited charging infrastructure as a critical issue.
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Expectations for vehicle range are also increasing. McKinsey’s data shows that the minimum range expectations have risen from 270 miles in 2022 to 291.4 miles in 2024. This trend suggests that consumers are looking for EVs that can support longer journeys without frequent recharging, an area where current offerings still fall short for many buyers.
Despite these challenges, there is still a positive trend towards electrification among non-EV owners. The study indicates that 38% of non-EV owners worldwide would consider purchasing a plug-in hybrid (PHEV) or an EV for their next vehicle, an increase of 1% from two years ago. This shows a slow but steady shift in consumer preferences towards greener technologies, albeit with caution.
Automakers are taking note of these mixed signals. General Motors, for example, has recently adjusted its EV sales and production targets, acknowledging the complexity of the market and the varied consumer readiness for a complete transition to electric vehicles. The dual strategy of investing in both EV and ICE technologies may be necessary as the industry navigates this transitional period.
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Dr Philipp Kampshoff anticipates that the next generation of EV buyers will rely on public charging much more than the current one, suggesting a critical need for accelerated infrastructure development. The study underscores the importance of addressing these infrastructure and cost issues to maintain the momentum of EV adoption.
The findings from McKinsey & Co. present a nuanced picture of the EV market. While there is undeniable progress and a gradual increase in consumer interest in EVs and PHEVs, significant challenges remain. The high percentage of current EV owners considering a return to ICE vehicles due to infrastructure and cost concerns serves as a wake-up call for policymakers and industry leaders. Addressing these issues promptly and effectively will be crucial to sustaining and accelerating the transition to a more sustainable automotive future.
McKinsey & Co.’s survey can be viewed below.
