Automakers - both legacy & start-ups are concentrating on offering premium upmarket models and adding more technology to their vehicles. However, a recent study reveals that consumers today are extremely price-sensitive. It mentions how, post the global pandemic and the resulting inflation, many of these premium vehicles have become unaffordable to average buyers.
The study shows that almost half of the people looking to purchase EVs (47%) look at vehicles priced under $40,000; while 22% look for EVs under the $30,000 price tag. This difference in automaker expectations & consumer reality has resulted in very limited options for buyers in the lower price range.
The study also found that younger people, who have less buying power, are among the most interested in electric vehicles. As per data, 90% of people aged between 18 to 24 are open to buying EVs. This percentage reduced to 83% among buyers aged between 24 to 34 years. So, if they can't afford EVs, companies won't be able to convert their interest into sales.
The report also mentions how EV buyers don't want an electric pickup truck. The data suggests that only 10% of the respondents said they would buy a pickup. However, 43% of them were interested in buying a car, and 42% were open to a crossover or SUV. Also, 39% of current pickup truck owners reportedly stated that they wouldn't consider an EV.
The study also shows how range anxiety is now much less of a concern. 45% of the respondents in the survey were comfortable buying an EV with 200 miles (322 km) of range or less.
Source: Edmunds