What?
A recent study by McKinsey & Co. reveals that nearly half of EV owners in the United States, 46 percent, are considering switching back to gasoline cars due to reasons such as inadequate charging infrastructure, high EV ownership costs, and the impact EVs have on their driving patterns during long trips. The study also highlights that the desire to switch back to gas varies across different countries, with Australia leading at 49 percent and Japan at the opposite end with only 13 percent contemplating a return to combustion-powered vehicles.
Why does it matter?
The study sheds light on the challenges faced by EV owners, particularly in the United States, where concerns regarding the public charging network’s adequacy, the high cost of EV ownership, and limitations in charging options at home are causing dissatisfaction among consumers. While the US charging network is expanding, with 183,000 public EV chargers available as of May, there is still a significant gap to be filled to meet the growing demand. This information is crucial for policymakers and automakers to address these issues and retain EV owners within the electric vehicle market.
How is it going to shape the future?
The findings of this study underline the urgency for improvements in charging infrastructure, reduction of EV ownership costs, and addressing consumer concerns related to charging accessibility and mobility requirements. The slow rollout of initiatives, such as the allocation of $5 billion in grants for building fast chargers under the Bipartisan Infrastructure Law, due to regulatory and consumer needs, indicates the complex challenges ahead. Automakers will need to adapt their strategies to cater to diverse consumer needs globally and accelerate the transition to electric vehicles to retain existing EV owners and attract new ones. This study serves as a wake-up call for the industry to focus on enhancing the EV ownership experience to ensure the continued growth and success of electric vehicles in the automotive market.
