- Percentage of consumers intent on buying an EV rises just three percentage points year-on-year (to 58%)
- High fuel costs (37%), environmental concerns (34%) and taxes on ICE vehicles (23%) top motivators to purchase an EV
- Lack of charging stations (27%), concerns over cost of battery replacements (26%) and ‘range anxiety’ (25%) top concerns
- Between 2019 and 2023, the proportion of European EV sales that were Chinese models increased from 0.4% to 8%.
Dublin, 9 September 2024: Global demand for electric vehicles (EVs) has slowed, and for prospective EV buyers the main concern is a lack of charging infrastructure, according to the fifth annual EY Global Mobility Consumer Index report.
The report – based on more than 20000 respondents from 28 countries and which is published on World EV Day (Sept 9th) – shows that while globally those looking to buy an EV has risen from 55% to 58% since last year, demand is now beginning to level off, having jumped from 30% to 55% between 2020 and 2023.
High fuel costs (37%), environmental concerns (34%) and taxes on ICE - internal combustion engine - vehicles (23%) are the top motivations cited by consumers to purchase an EV. The report identifies a series of concerns which are holding some potential buyers back, with 27% of respondents citing a lack of charging infrastructure as their primary concern, 25% saying they are worried about the range of EVs, and 18% saying that EVs take too long to charge. For the first time the latest study has also identified apprehensions around the high cost of battery replacement, highlighted by 26% of potential buyers.
Julia Ann Corkery, EY Ireland Government and Infrastructure Advisory Partner, said “Electric vehicles are the future of mobility and key to decarbonising the transport sector, but these findings reveal that there is still a journey ahead when it comes to addressing consumer concerns, both here in Ireland and globally. As the EV market matures and moves increasingly beyond the early adopters into mass adoption, it’s clear that consumers continue to hold concerns, particularly regarding infrastructure and range. For the first time our research has also identified concerns around the cost of battery replacements.
“These global trends are mirrored here in Ireland. EVs have had a challenging year to date, with the CSO figures showing that 14% of new vehicles licensed this year were EVs, down from 18% in the same period last year. Consumers appear to be turning into hybrid vehicles instead, with licenses up by a third year-on-year to 22% of all vehicle licensed in the first seven months of the year*.
“Globally, there needs to be a sustained effort across the ecosystem to make sure that these concerns are addressed, otherwise we run the risk of turning consumers off EVs at a time when they should be getting more excited about them. Positively here in Ireland, we’ve seen significant steps to address issues around charging infrastructure provision. For example, the grant scheme run by Transport Infrastructure Ireland and funded by ZEVI (Zero Emission Vehicles Ireland) will support up to 130 new high powered EV recharging points along Ireland’s motorway network. It’s crucial that this momentum is maintained on both the delivery of the necessary public infrastructure and on supporting the purchase of both new and second hand EVs, to enable the essential transition of our transport fleet to emissions-free vehicles in the coming years.”
Consumer Interest Increases in Chinese EV brands
Chinese brands have made significant strides in recent years, particularly outside their homeland. Between 2019 and 2023, the proportion of European EV sales that were Chinese models rose from 0.4% to 8%. In terms of brand preference, the data shows that 30% of consumers in APAC who intend to buy an EV have at least one Chinese brand in their top three preferences, but that number falls to 16% for Latin American respondents (Brazil, Mexico, Colombia) and 12% in Europe. European respondents indicated that the leading reason they would consider a Chinese EV brand is the potential value for money (59%) and the appeal of the vehicles on offer (51%), while value for money was of lesser concern for APAC respondents.
The EY Global Mobility Consumer Index also revealed generational shifts in attitudes. While both millennials and Gen Z respondents ranked good value for money as their primary reason for considering Chinese EV brands, they diverged on trust – as only 36% of Gen Z consider trust in Chinese brands a factor in the purchasing process, compared to 41% of millennials.
Julia Ann Corkery says, “It has been a strong 12 months for Chinese brands, which are increasing in popularity right across the globe. Many Chinese brands offer a compelling value proposition for consumers, with a wide selection of affordably priced EVs loaded with technology features. However, the lack of brand awareness and a growing issue with trust remains a challenge, particularly outside the APAC region.”
Increasing awareness of connected car features
The connectivity of cars has become a key issue on which global automakers are competing for customers, but they still have work to do. Consumers surveyed have a strong interest in connected technology, particularly technologies that help with navigation and improve safety and security, with more than 60% indicating that if the technology is available they would use it. That number is lower for other services though, with service and maintenance at 37% and performance upgrades at just 21%.
Also, across the board, there are concerns about the cost of services for connected cars: globally, 49% say they are too expensive. While 47% of US and 45% of European EV owner respondents cited this as a key concern, only 39% of Chinese respondents said the same. Equally, 50% of US EV buyers say services are expensive, compared with just 40% in China.
In terms of data sharing, 36% globally say they have concerns about sharing data. Interestingly, there is very little difference between the generations, with Gen Z and baby boomers at 33% and 34%, respectively, and Gen X and millennials the most concerned about sharing data, both at 37%.
Julia Ann Corkery says: “There is clearly still a case to be made for consumers when it comes to connected cars. Our data shows that consumer respondents are increasingly prioritising functional connectivity features in connected cars – especially safety and security – and view certain add-on services as non-essentials. The perception that connected features are expensive and data security concerns continue to weigh down heavily on data monetization efforts from automakers. Also, while privacy concerns impact a considerable share of respondents, the findings reveal that incentives could encourage consumers to share their data. Globally, 56% of consumer respondents believe that incentives, whether monetary or otherwise, are required to encourage sharing of vehicle or personal data. This is going to be an essential question to answer for manufacturers seeking to fully monetize this area.”
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Notes to editors:
*Central Statistics Offices: Vehicles licensed for the first time to July 2024 https://www.cso.ie/en/releasesandpublications/ep/p-vlftm/vehicleslicensedforthefirsttimejuly2024/
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About the Mobility Consumer Index
The EY Mobility Consumer Index (MCI) provides unique insights into the global trends of the future of mobility. Based on a global survey of more than 20,000 consumers across 28 countries (Australia, Austria, Brazil, Canada, China, Colombia, Czech Republic, Denmark, Finland, France, Germany, India, Indonesia, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Singapore, South Korea, Spain, Sweden, Thailand, Vietnam, UK, and US) during June and July 2024, MCI also aims to assess the consumers’ car buying journey while offering insights around their attitudes towards mobility choices and sustainability.
