Global demand for EVs slows as consumer concerns remain high over lack of charging infrastructure 

• Percentage of consumers intent on buying an electric vehicle (EV) is at 58%, just three percentage points increased year-on-year with lack of charging infrastructure a widely cited issue

BANGKOK, 4 October 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 19,000 respondents from 28 countries – shows that while globally those looking to buy an EV has risen from 55% to 58% since last year, demand is slowing down, having increased from 30% to 55% between 2020 and 2023.

A series of concerns are still holding back some prospective buyers, 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, mentioned by 26% of potential buyers.  

In 2024, high fuel prices have continued to outpace other factors in motivating consumers to buy an EV, with 37% citing it as the main reason (42% for Thailand), and environmental concerns have continued to be deprioritized and received a secondary importance in recent years. Overall, global car buying intent rose from 44% to 51% around the world, while in Thailand those intending to buy a car is 57%.

Vilailak Laohasrisakul, Assurance Partner, says:
“Today’s figures is a wake-up call for the automotive, energy and government sectors. While electric vehicles are the future of mobility, these findings reveal that there is still a way to go when it comes to addressing issues around infrastructure, range and high battery replacement costs. A significant number of consumers remain skeptical about EVs, particularly regarding infrastructure and range. These aren’t new concerns. There require sustained efforts 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 this should be a time for EVs’ growth.”

Are consumers leaning towards Chinese EV brands?
Chinese brands have made great strides in recent years, particularly outside their homeland. 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 and 12% in Europe. Global respondents indicated that the leading reason they would consider a Chinese EV brand is the potential value for money (52%) and the appeal of the vehicles on offer (49%), while value for money was of lesser concern for APAC (48%) and Thai (45%) 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. 

“The Chinese brands offer a compelling value proposition for consumers, providing a wide selection of affordably priced EVs loaded with technology features not typically found in comparable gasoline or diesel vehicles. However, challenges such as lack of brand awareness and growing trust issues persist. We anticipate Chinese brands will continue to invest in local partnerships and marketing efforts to strengthen their presence.”, Vilailak explains.

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 (45% for Thailand). 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%.

“There is still a strong case to be made for consumers when it comes to connected cars. Our data shows that consumer respondents are increasingly prioritizing functional connectivity features in connected cars, especially safety and security, and view certain add-on services as non-essential. The perception that connected features are expensive and data security concerns continue to weigh heavily on data monetization efforts from automakers. Additionally, 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 what manufacturers seeking to fully monetize this area, must find a way to fulfill this requirement.”, Vilailak summarizes.

Read the report: https://go.ey.com/3XohSYd

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APAC no. 15001418