According to a recent report, roughly half of all American electrical vehicle owners wish to buy a traditional gasoline-powered car the next time they purchase an automobile. The findings from the study conducted by the consulting giant McKinsey and Company are a bad sign for EV consumer adoption.
Per McKinsey’s research, roughly 46% want to return to an internal combustion engine for their next car purchase. The study found that participants complained about issues surrounding EVs, such as inadequate charging infrastructure and higher prices than traditional cars. Furthermore, the consulting firm discovered that 58% of Americans are likely to keep their current cars longer where 44% suggested they will prolong prospective EV adoption.
Ultimately, the research paints a pessimistic outlook for consumer interests in EVs which has endured significant roadblocks over the past year. The data which suggests waning consumer adoption also presents a challenge for the Biden administration that has incessantly tried to push EVs on the American public.
Biden’s Environmental Protection Agency (EPA) recently finalized extremely stringent regulations that would push the administration’s goal of achieving 50% EV representation in all new vehicle sales by 2030. The EPA regulations heavily target light-duty vehicles, forcing manufacturers to ensure 56% of their production is electric by 2032.
However, President Biden has received substantial pushback from the auto industry urging him to pull back on his EV agenda amid consumer disinterest in EVs. The American Tribune reported on a letter from thousands of car dealers last year from around the country who urged Biden to “tap the brakes” on the out-of-touch government regulations that are clearly misaligned with consumer preferences.
The letter read, in part, “These vehicles are ideal for many people, and we believe their appeal will grow over time. The reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs [battery electric vehicles] arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots.”
It continued, “Mr. President, it is time to tap the brakes on the unrealistic government electric vehicle mandate. Allow time for the battery technology to advance. Allow time to make BEVs more affordable. Allow time to develop domestic sources for the minerals to make batteries. Allow time for the charging infrastructure to be built and prove reliable. And most of all, allow time for the American consumer to get comfortable with the technology and make the choice to buy an electric vehicle.”
Other auto industry players have also felt the pullback in EV interest, forcing a reevaluation of industry projections. Last month, The Tribune reported that Mercedes-Benz was reconsidering its forecast to be fully electric by the end of the decade.
“The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade. This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz. Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era,” CEO Ola Källenius previously said in 2021. However, the chief executive gave an update stating that the “transformation would take longer than expected.”
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