EY study – Four in ten consumers plan electric vehicle purchase as market moves into high gear
Electric vehicle (EV) sales are expected to boom in the coming 12 months, according to the latest EY Mobility Consumer Index (MCI), a survey of more than 9,000 respondents from 13 countries
- 41% of consumers surveyed plan to buy an electric vehicle (EV) as their next car, up 11 percentage points since November 2020
- Environmental concern is the top driver for purchasing an EV
- 66% of all consumers would be willing to pay a premium for an EV
Electric vehicle (EV) sales are expected to boom in the coming 12 months, according to the latest EY Mobility Consumer Index (MCI), a survey of more than 9,000 respondents from 13 countries. More than four in ten (41%) of those looking to buy a car in the next year say they will be buying an EV – an increase of 11 percentage points on November’s MCI – and nearly eight in ten (77%) of those who already own an EV say their next car purchase will also be an EV. Overall, 50% of those surveyed say they expect to buy a car (EV or combustion engine), up 17 percentage points increase from the November findings, with 65% saying that they would buy one in the next 12 months.
The survey also reveals that concern about the environment is the top reason for buying an EV, with 78% also stating that the COVID-19 pandemic has heightened awareness and concerns about environmental issues. Fifty-three percent of those looking to buy an EV feel that it is their responsibility to reduce their personal environmental impact, and 54% feel that buying an EV is one way to achieve this.
Sixty-six percent of all consumers say they are willing to pay a premium for an EV, increasing to 91% among those who are looking to buy an EV as their next car. However, cost of ownership emerges as the top detractor for those who do not plan to buy an EV (50%).
Connect the watts
While the EV market is set to accelerate, uncertainty around charging infrastructure looms, and features as a top three concern among those not looking to buy an EV (32%). Forty-seven percent of all respondents believe there are not enough charging points available for them to comfortably invest in an EV.
Prospective EV buyers have similar concerns, with 38% stating that there are not enough charging points available. And for EV owners, charging locations (84%) and speed (78%) are cited as key concerns when it comes to charging.
Miller says: “People often claim that if you build it they will come, but EV-buyers are already on their way, and our utilities, government and infrastructure planners are playing catch-up. It would also benefit manufacturers to get involved in this effort as they need to be ready to provide key infrastructure in communities and at the pumps and deliver innovative offerings when it comes to charging and using EV batteries to help power the home. It would be a huge setback if EV adoption were to be hindered because the pieces around it weren’t in place to meet consumer demand.”
Cars bounce back
While the MCI shows the number of journeys taken by consumers is expected to decline by 5% compared to pre-pandemic levels, traveling by public transport is least favored among respondents (with uptake set to decline by 11%), while the car emerges as the favored mode of transport for consumers. Most respondents who own or intend to buy a car say that constant access to a personal car is important to them (56%), and that their safety and wellbeing is best served by a personal car (52%).
Additionally, while the survey shows non-work-related travel is expected to recover to pre-pandemic levels, work travel is expected to decline by 14%, representing a significant shift toward remote working.
Commenting on the findings of the research, Mr. Giannis Pierros, Partner of EY Greece, Head of Advanced Industry Sector (Security Services) and EY Automotive and Transportation Sector in the region of Central, Eastern, Southeastern Greece (Southeast Europe) , states: “Electric vehicles are a critical link in the chain of transition to a carbon – free future, under the EU ‘s Green Deal. The electrification of corporate fleets should be at the heart of this effort, as, given its size and the day-to-day use of these vehicles, the benefits to the environment will be significant, and significant value-added business opportunities are expected to be created. The transition to e-mobility is something we have begun to see, even at an early stage, in our country. However, the smooth and rapid transition presupposes the cooperation of all stakeholders and a favorable regulatory framework, which will align the interests of the State, businesses and, above all, the citizens. ”