According to a recent market insights report conducted by The Zebra, nearly 60% of people have considered buying a hybrid or electric vehicle.
In fact, the global market share of electric vehicles doubled in 2021, with U.S. electric vehicle sales reaching over half a million. In February 2022, California became the first U.S. state to hit 1 million plug-in cars. Tech companies like Panasonic and Sony have also announced plans to develop electric vehicles and EV batteries. But as manufacturers and tech companies ramp up their commitment to the EV market, are these companies moving too quickly and leaving consumers in the dust?
A 2021 study by Cox Automotive found that the top barriers consumers face when considering electric vehicles include the accessibility of charging stations, the cost and battery-related concerns. A few respondents in The Zebra research study actually stated that they don’t even perceive EVs to be better for the environment due to pollution created by manufacturing and unethical battery mining practices.
In addition, there seems to still be a huge learning curve when it comes to adopting EVs. Electric vehicles usually come with the latest infotainment systems, large touch screens and features like over-the-air updates that connect from cloud technology that hasn’t proven to be quite as reliable. Consumer Reports stated that these new tech features are leading to problems and bugs and are making it less appealing to consumers to invest.
Having to get the right insurance coverage for an EV can deter buyers as well. Auto insurance carriers look at a lot of different factors when determining a person’s premium, including car make and model and what types of risk the driver faces when behind the wheel. Rates are also dependent on material costs and driving data as well. Because electric vehicles don’t fit within the historical framework of insurance and are pretty ambiguous when it comes to measuring risk assessment, they tend to cost more to insure than equivalent gasoline-powered cars. Most EVs on the market today happen to be luxury cars too, which cost more to insure in general regardless of how they are powered.
Although there might be obstacles when it comes to consumers adopting fully electric vehicles, the supply chain shortage, inflation and the commitment to fight climate change might be the perfect combination to push drivers to consider the benefits of investing in EVs. As manufacturers, tech companies and insurers continue to explore the electric vehicle market, the latest developments with the leaders in the industry will truly make or break the way EVs continue to break the glass ceiling in the market.