Deloitte study shows slowing momentum for electrification in the US

Deloitte study shows slowing momentum for electrification in the US

The report showed a 9% increase in ICE vehicle purchase intent, while interest in hybrids and BEVs has dropped to 21% and 6%, respectively.

The 2024 Global Automotive Consumer Study by Deloitte revealed shifting trends in the automotive sector, highlighting the rise in U.S. consumer interest in internal combustion engine (ICE) vehicles and a decline in hybrid and battery electric vehicle (BEV) purchase intent. The report showed a 9% increase in ICE vehicle purchase intent, reaching 67%, while interest in hybrids and BEVs has dropped to 21% and 6%, respectively, the company said.

Affordability remains a primary concern for U.S. consumers, with a majority expecting to pay less than $50,000 for their next vehicle. Price is the top factor in vehicle brand selection for 59% of U.S. consumers surveyed. Additionally, over half (51%) of U.S. consumers are considering switching vehicle brands, driven by desires for something different, affordability and access to new features. Only 25% of U.S. consumers are willing to pay extra for connected vehicle services, the report found.

The study also highlighted the consideration among 28% of U.S. consumers aged 18-34 to shift from traditional vehicle ownership to a subscription service model, driven by economic concerns and transportation expenses.

Globally, consumer interest in ICE vehicles has also increased in markets like Germany, Japan and the Republic of Korea. In contrast, China shows the highest preference for BEVs, while Japan leads in hybrid electric vehicle interest.

Charging time has emerged as the primary concern for EV adoption in several countries, including the U.S., Japan and the Republic of Korea, surpassing driving range concerns in Germany. The report indicates that reducing fuel costs is a major reason for choosing EVs in several regions, except in India, where environmental concerns prevail.

About half of the non-BEV intenders in the U.S. expect a driving range of at least 400 miles for a fully charged BEV. Concerns about the environmental impact of EV batteries are significant, especially in India, Southeast Asia and the Republic of Korea. Consumers worldwide prefer various stakeholders, including car manufacturers, battery recyclers and battery manufacturers, to collaborate on battery recycling solutions.

The report found that payment methods for public EV charging are evolving, with a preference for credit/debit card payments rising in the U.S. and the Republic of Korea, while smartphone app payments are declining in China and India.

The report highlighted that despite changing consumer behaviors, price, performance and quality remain key drivers in vehicle purchase decisions globally, the company said.

You May Also Like

Cold weather range loss and EVs: Separating fact from fiction

EVs are frequently criticized during colder months for the range loss they experience, but is this criticism valid?

EV-Cold-Weather-Range-1400

Any seismic shift in technology comes with consumer hesitancy and media skepticism. Remember when everyone was afraid to stand in front of microwave ovens? Or when fears spread that cell phones could spontaneously explode?

Fear of any new technology is a natural psychological response. But it takes the media machine to turn consumer hesitation into a frenzy. Any way you slice it, 2023 was one big platform for expressing fears around EVs. Read past the headlines, and many articles demonstrated a lack of context or understanding of the technology.

Carrier Transicold launches all-electric refrigeration unit

Carrier Transicold said the unit provides nearly 40% more cooling capacity with greater efficiency than the unit it succeeds.

Carrier-Transicold_Neos-200e_Electric-Van
Recycled Rubber Coalition white paper examines EV impact on scrapped tires

The Coalition estimates there will be a 12% increase in the number of scrap tires that will be produced as drivers transition to EVs.

Recycled-Rubber-Coalition
Chrysler Halcyon Concept is the company’s latest take on an autonomous EV

The company will launch its first battery-electric vehicle in 2025 and will feature an all-electric portfolio in 2028.

Chrysler-concept
Allison Transmission selected as e-axle supplier by Oshkosh Corp.

The Allison eGen Power 100S was integrated into the McNeilus Volterra ZSL electric refuse vehicle, designed for the waste management industry.

E-Axle-allison-transmission-1400

Other Posts

Lightning eMotors enters an agreement to sell assets

The asset sale will allow the company to sell off its technologies and products to a new owner rather than go through liquidation or bankruptcy proceedings.

Lightning-eMotors-GoBolt-EV-1400
Mullen earns CARB certification for Class 3 electric truck

The certification is awarded to vehicle manufacturers who meet specific emissions standards in compliance with CARB regulations.

mullen-three-class-3-ev-cab-chassis-truck-1400
GM, Honda begin volume production of fuel cell systems

The hydrogen power solutions built at FCSM will be used by both companies in various product applications and business ventures.

fuel-cell-manufacturing-Honda-GM-1400
Toyota releases new hydrogen-powered FCEV, the Mirai

The 2024 Toyota Mirai will include up to $15,000 of complimentary hydrogen with a purchase or lease, Toyota said.

2024_Toyota_Mirai-1400