Road To Electrification: Survey Says Cost And Range Are The Top Hurdles

KPMG's findings reveal that roughly 50 percent of American motorists are considering a switch to plug-in alternatives.

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Suvrat Kothari

By: Suvrat Kothari

May 27, 2023 at 8:36am ET

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KPMG’s Consumer Pulse Summer 2023 survey has revealed that nearly half of the gas and diesel vehicle owners in the US are considering switching to hybrid or electric vehicles. Increasing gas prices and environmental concerns are the reasons prompting buyers to consider cleaner vehicles, the report suggests.

KPMG, an international accounting and auditing firm, surveyed 1,003 people in the US to learn about consumer mindset regarding EVs.

The study revealed that high costs were a stumbling block in the faster adoption of plug-in vehicles, reported Automotive News. Households with an income of at least $100,000 were more likely to already own an alternative fuel vehicle, while those with lower incomes reported to be considering EVs in the future.

To potentially make electric vehicles more mainstream, the US government introduced the Inflation Reduction Act. The act includes a provision called the Clean Vehicle Credit, through which buyers can qualify for tax credits of up to $7,500 for new plug-in or fuel-cell vehicles.

Meanwhile, the KPMG survey found how location determines buying decisions. Buyers in the Pacific and Mountain regions were more likely to purchase alternative fuel vehicles, while those in the Midwest were least likely to do so.

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Moreover, there are generational differences in buyer sentiment, according to the report. Generation X and Millenials are more likely to purchase an EV in the near future, while older Americans are slower in embracing the idea of plug-in vehicles. The survey also states that the youngest generation is the most optimistic about EVs, but is least likely to be able to afford them.

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One more factor critical to EV satisfaction and adoption is the charging experience. A J.D. Power study in March 2023 revealed that slow charging speeds and limited charging education resulted in lower satisfaction among EV buyers. Owners with portable or mounted Level 2 chargers stated the cost of charging was the key reason for their dissatisfaction.

Another EV study conducted by Reuters/Ipsos in March 2023 found that a little over one-third of Americans considered an EV as their next vehicle. The poll revealed that 34 percent of all respondents considered an EV, while 31 percent didn’t. The poll, conducted online, surveyed 4,410 people nationwide and had a credibility interval of about 2 to 4 percentage points in either direction.

Source: Automotive News

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