Are Cheaper ICE Alternatives Stalling EV Buying Intent?
13 July 2023 by Curtis Hutchinson
EV buying intent stalls as car buyers consider cheaper ICE alternatives, finds JudgeService research.
As the clock counts down on banning new internal combustion engine (ICE) car sales from 2030, the proportion of buyers considering purchasing an electric vehicle (EV) has dropped year-on-year.
JudgeService’s annual State of the Nation survey, which polled the views of 6,524 franchised dealer customers, found EVs have experienced the biggest drop in fuel types among buyers currently planning their next purchase.
Twelve months ago 15% of owners said they expected their next purchase to be an EV. However, this has now dropped to just 9%. While owners who plan to stay with their EVs have also decreased year-on-year from 90% to 83%.
Hybrid buying intent also cooled, dropping from 17% to 15%, while plug-in hybrids increased from 5% to 7%.
However, owners intending to purchase a petrol model in their next buying cycle jumped from 32% to 48%, while diesel almost doubled from 9% to 17%.
The main barrier to EV adoption identified by the data is the upfront cost buyers face (68%), followed by insufficient charging points (58%), range anxiety (46%), and uncertainty over battery life (39%). At the same time, 20% admitted to just not wanting one.
“EV consideration is down when the market needs sustained exponential growth in the run-up to 2030,” said Neil Addley, managing director of JudgeService.
“The cost of living crisis and rising interest rates are impacting how much consumers can spend on their next car, even if that means shelving plans to go electric.
“The boom in new EV sales is being powered by the fleet sector on the back of improved supply and favourable benefit-in-kind allowances for company car drivers. However, EV adoption is in danger of losing some of this momentum if retail customers are not incentivised,” he said.
Addley points to attractive 0% APR finance schemes on new EVs currently being run by some carmakers, including Vauxhall and Volkswagen, but believes the government also has a role to play.
“Without tax incentives or subsidies, car buyers will purchase on price, even if that means staying with petrol or diesel for longer than many planned to,” he said.
JudgeService’s 2023 State of the Nation report is published this month.
Further details and comments available from Neil Addley on 07795 665927 or neil@judgeservice.com.
About JudgeService
Launched in 2011 by Neil Addley, JudgeService is the UK’s only customer review platform developed exclusively for the car retailing sector. By ensuring all reviews are verified and genuine, JudgeService builds trust and respect between customers and sellers, enabling car retailers to manage their online reputations actively.
JudgeService shares granular insight reports with dealers to help them identify opportunities to improve customer satisfaction, with many achieving 100% recommendation scores.
Based in Harrogate, North Yorkshire, JudgeService has published over 1 million customer reviews and is used by over 1,000 franchised, independent and car supermarket sites across the UK.
Issued by Curtis Hutchinson Communications
