With some encouragement, undecided battery electric vehicle shoppers can become likely purchase considerers, which is good news for automakers expanding their EV product lineup, according to the inaugural J.D. Power U.S. Electric Vehicle Consideration Study. 

Currently, more than half (59%) of new-vehicle shoppers fall into the "somewhat likely" or "somewhat unlikely" categories when it comes to considering an EV for their next purchase or lease — a significant window of opportunity for future EV sales.

"Right now, the projected EV supply outweighs consumer interest. And for every new-vehicle shopper seriously considering EVs, there’s another at the opposite end of the spectrum," said Stewart Stropp of J.D. Power. "To avoid a potential ongoing inventory surplus, it behooves manufacturers and retailers to identify why shoppers in the middle ground aren’t completely sold on the technology, and how to get them over the hump into the ‘very likely’ consideration camp."

The study found that firsthand experience with EVs plays an important role in purchase consideration. Among respondents who say they have owned or leased an EV in the past, 46% are "very likely" to consider another, while only 6% say they are "very unlikely" to consider purchasing another EV as their next vehicle. 

This is similar to findings in the J.D. Power 2021 U.S. Electric Vehicle Experience Ownership Study in which, even among dissatisfied owners (overall satisfaction scores below 600 on a 1,000-point scale), 65% say they "definitely will" consider an EV for their next purchase.

The EVC Study also found the "very likely" ratio among respondents who have simply ridden in an EV is nearly three times that of those who have never been in one (20% versus 7%, respectively). 

Half of respondents had never been in an EV, highlighting a critical need for automakers and retailers to create opportunities for consumers to familiarize themselves with these vehicles. "Anything stakeholders can do to get more people into electric vehicles, whether it’s experiential events, take-home test drives or other proactive efforts, will help break down the preconceptions people have about EVs and drive higher consideration," Stropp said.

Key findings of the 2021 study include:

 

Vehicle use outweighs range anxiety: Among heavy-use drivers, the prospect of eliminating gasoline expense seems to neutralize range anxiety. "Very likely" consideration is more than three times higher among those who take more than 10 road trips a year compared with those who don’t take any (34% versus 10%, respectively). The ratio is similar among those who commute more than one hour (35%) compared with those who have no commute (9%).

 

Consideration by current vehicle segment: The "very likely" ratio among current owners of premium brands (36%) is more than twice that of mass market brand owners (15%). The study also finds consideration by current vehicle brand ranges widely from 46% to 96% in the premium segment and 36% to 60% in the mass market segment.

 

Information begets consideration: Nearly one-third (30%) of non-considerers cited a lack of information as a reason for their lack of consideration. To consider EVs, shoppers need to be better informed about them and the ownership proposition they offer.

 

Time frame for non-considerers to become considerers: Four in 10 (41%) non-considerers say they will consider a plug-in hybrid electric vehicle or a hybrid electric vehicle in the next two to four years while 27% say they will consider an EV in the same time frame.