Electric Vehicle Buyers’ Expectations vs. Market Realities

New research has highlighted a significant gap between what electric vehicle (EV) buyers expect and what the market currently offers. This disparity underscores the need for better consumer education both within and outside dealerships. Let’s delve into the key findings:

Unrealistic Price Expectations

Consumers tend to hold overly optimistic beliefs about EV pricing. Nearly 47% of research participants expressed interest in models priced below $40,000, with 25% searching in the $30,000-$40,000 range and 22% looking for sub-$30,000 cars. However, the reality is that there are no new EVs on the market with an average MSRP of less than $30,000. Only four models retail in the $30,000-$40,000 range. Despite this, EV prices have been declining rapidly, nearing parity with gas-powered models.

Electric Vehicle
Electric Vehicle

Brand Trust Matters

Branding significantly influences consumer sentiments. Tesla, unsurprisingly, received the largest share of trust (23%), followed by Toyota (12%) and Honda (8%). While Toyota and Honda have successful hybrids, their fully electrified offerings are limited. Consumers’ lack of familiarity with the EV market poses a challenge, as adequate data for informed decisions is scarce.

Educating Consumers

Dealers must prepare staff to educate consumers about market realities when discussing battery-powered models. As EV adoption accelerates, bridging this knowledge gap becomes crucial.

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