The next generation of electric vehicle purchasers is expected to include today’s sceptics, according to a report released on Tuesday by Cox Automotive. This news may come as a shock to Tesla Inc. and other EV manufacturers who are facing decreased demand.
At the end of the decade, Cox Automotive predicts a “second, significant wave” of EV buyers. Nonetheless, the same survey discovered that almost half of all car shoppers do not currently have an EV in mind.
Due to rising prices, demand for electric vehicles (EVs) is drying up for manufacturers like Tesla TSLA, +3.29%, and Rivian Automotive Inc. RIVN, +2.66%. Legacy automakers, like Ford Motors Inc. F, +0.89%, have slowed down their EV expansion efforts in favour of more affordable hybrids and other products.
Slightly more than half of the current EV sceptics will give an EV serious thought within three to five years, according to Cox, “as] technology improves, the U.S. charging network expands and prices moderate further.”
Furthermore, it stated that “80% of today’s sceptics will be ready to consider an EV as more barriers fall” within the next ten years.
Over a million EVs were sold in the United States last year. After reaching a peak in 2022, sales growth has slowed and American interest in EVs has decreased, according to Cox.
Cox analyst Isabelle Helms stated, “Although we’ve seen EV sales growth slow and consideration dip, we believe this is part of a normal growth curve and not the end of the story.”
“We are still optimistic about EV sales in America in the long run because by the end of the decade, a lot of people who are currently sceptical will be giving them serious thought. We think long-term growth in electric vehicle sales will come from increased infrastructure, education, and technological innovation and advancements, said Helms.
