According to the recent McKinsey Study, Nearly Half Of US EV Drivers Consider Switching Back To Gas Vehicles: McKinsey Study

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A recent survey by McKinsey & Co. highlights growing dissatisfaction among electric vehicle (EV) owners, with 46% of US respondents and 29% globally considering a switch back to gas-powered vehicles. Key reasons include inadequate public charging infrastructure, high ownership costs, and a less enjoyable driving experience. The survey underscores significant challenges in the EV market despite ongoing efforts to expand charging networks and promote sustainability.

A growing number of drivers of electric vehicles are considering a return to internal combustion engine cars, per the latest results of the McKinsey & Co. Mobility Consumer Global Survey for 2024.

In a survey conducted in the US, 46% of EV owners stated they would probably go back to using gas engines.

According to a survey conducted globally among 30,000 respondents across 15 nations, over 25% of electric vehicle (EV) owners are inclined to switch back to gas-powered vehicles.

According to the study, Australia topped the list with 49% of respondents saying they would like to resume operating a gas-powered vehicle.

The main reason cited by respondents for wanting to return to gas-powered vehicles was the absence of public charging infrastructure; 35 percent of them stated that it is “not yet good enough for me.”

Thirty-four percent said that owning an EV came with “too high” expenses in total.

The inability to charge at home (24 percent), excessive worry and stress over charging (21 percent), shifting mobility needs (16 percent), and not enjoying the driving experience (13 percent) rounded out the list of reasons people were dissatisfied with electric automobiles.

Until 2022, 21% of respondents worldwide stated they would never wish to convert to an electric car. In contrast, 18% of respondents stated they would buy an electric vehicle as their next vehicle, up from 16% in 2022.

In the upcoming ten years, 29% of respondents intend to switch from driving a car to another kind of transportation. They mentioned wanting to live a more sustainable lifestyle, paying high automobile payments, and working remotely.

Comparable patterns have been discovered in the US by additional investigations.

The BloombergNEF 2024 Electric Vehicle Outlook states that customer anxiety over the EV market has been rising.

“In the U.S., EV market jitters inflamed by the upcoming presidential election helped slow down adoption this year, and by 2027 only 29 percent of cars sold in the country [will be] electric,” the report said. This is because concerns about driving range, cost, battery life, and inconsistent public charging are becoming commonplace in the marketplace.

America’s EV Infrastructure

By 2032, the White House wants to sell 56% of new cars that are electric.

President Joe Biden proposed in March the toughest automotive pollution regulations to encourage the auto industry’s shift to electric vehicles and increase the number of EVs on the road.

The new initiative from President Biden intends to restrict the annual pollution allowance from vehicle exhaust. There will be severe consequences for automakers that don’t adhere to these new requirements.

However, despite the fact that the US has helped to create a market for greater EV sales, the infrastructure has been inadequate.

The historic 2021 Infrastructure Investment and Jobs Act authorized $7.5 billion for the construction of 500,000 public electric vehicle charging stations across the country. Tax benefits for EV purchases and charger installations are also increased by the Inflation Reduction Act.

Only eight public EV charging stations have been installed thus far, drawing criticism from both political parties.

That is not admirable. It has been three years now. Sen. Jeff Merkley (D-Ore.) stated during a Senate Environment and Public Works (EPW) committee hearing on June 5 that “that is a vast administrative failure.” “There’s a serious issue that needs to be resolved.”

Pete Buttigieg, the secretary of transportation, announced that the administration intends to construct 500,000 chargers by 2030.

“Now, in order to do a charger, it’s more than just plugging a small device into the ground,” Mr. Buttigieg told CBS’s “Face the Nation” last month. “There’s utility work, and this is also really a new category of federal investment. But we’ve been working with each of the 50 states.”

He restated his promise to build a half-million chargers in the next six years in response to host Margaret Brennan’s question on why just seven or eight had been completed.

The secretary said, “And the very first handful of chargers are now already being physically built.”

The Biden administration stated earlier this month that it will be allocating an additional $1.3 billion to the expansion of EV charging infrastructure in both urban and rural areas.

“Doubling down on electrification is more important than ever to our economic prosperity and national security,” said Joint Office Executive Director Gabe Klein in a statement. “With the rest of the world pushing down on the accelerator; we are moving fast to position the United States as the global leader in the future that everyone is racing toward.”

State of the US EV Market

Due to the stagnant demand for EVs among American consumers over the past year, automakers including General Motors, Ford Motor, and Volkswagen have been forced to reduce or halt their EV ambitions.

The demand for electric vehicles among drivers has decreased, while the cost of EVs has decreased overall, especially for used models.

Prices for used electric vehicles (EVs) were, on average, 8% less than those for used gas-powered vehicles, according to data from iSeeCars.

“There’s no denying the crash in used electric vehicle values over the past year,” said Karl Brauer, executive analyst at iSeeCars. “We’ve watched EVs [sic] prices fall between 30 and 40 percent since June of last year, while the average gas car’s price has dropped by just 3 to 7 percent in that same timeframe.”

Hertz disclosed in January that it was liquidating 20,000 electric vehicles or roughly one-third of its total fleet. Even used Teslas were being offered by the vehicle rental company, with an average cost of $25,000.

Three years after launching the largest electric vehicle rental fleet in North America, the choice was made.

New Electric Cars

According to Edmunds data, the 2024 Nissan Leaf ($28,140), 2024 Mini Electric Hardtop ($30,900), and 2024 Tesla Model 3 ($38,990) are the most affordable new electric vehicles available right now.

It is anticipated that the EV market will steadily improve over the next few years.

S&P Global Ratings projects modest demand growth in the range of 1% to 2% between 2024 and 2026.

“Softer sales growth in March (which equated to an annual sales rate of 15.5 million units) is consistent with our forecasts, which incorporate a delayed impact on consumer purchasing power from the contiguous macroeconomic shocks of high vehicle prices, ongoing inflation, and higher interest rates for longer,” the firm stated in an April 2024 report.

Recently, GreatGameIndia reported that the European Commission announced on Wednesday its decision to impose tariffs, starting early next month, as high as 48% on Chinese electric vehicles.