EV Demand Slows As Consumer Concerns Rise

The electric vehicle (EV) market, once on a steady growth trajectory, has hit a slowdown in major markets, particularly the US and much of Western Europe, as revealed by the latest Ernst & Young (EY) Mobility Consumer Index (MCI).

Charging Ahead? EV Demand Slows as Affordability and Infrastructure Issues Loom.

After several years of accelerating demand, consumer enthusiasm has waned due to various factors, including affordability concerns, insufficient charging infrastructure, and questions about battery longevity.

As early-adopter excitement fades, manufacturers and policymakers face new challenges in appealing to mainstream consumers.

According to the 2024 EY MCI survey, which gauges the attitudes of 19,000 consumers across 28 countries, global car-buying intentions are at an all-time high—51% of respondents plan to buy a car in the next 12 months.

However, the growth in EV sales is slowing.

While overall interest in EVs remains strong, with 58% of prospective car buyers preferring a fully electric or hybrid vehicle, key markets like the US, Canada, and Western Europe have seen demand stagnate. In contrast, regions like China and Singapore are witnessing increased EV purchase intentions, driven by government incentives and improvements in charging infrastructure.

Several factors are contributing to this hesitancy. For consumers, the availability of affordable models remains limited, especially in Western markets. Furthermore, range anxiety and a lack of accessible charging points have created barriers for those considering the switch from internal combustion engine (ICE) vehicles.

Charging infrastructure remains a significant bottleneck, with many consumers expecting an experience comparable to refueling ICE vehicles—convenient, quick, and widely available.

The global market’s transition from early adopters to mainstream consumers has also brought new expectations. While EV enthusiasts were willing to pay a premium for cutting-edge technology, mainstream buyers are more focused on value and long-term affordability.

This shift underscores the importance of offering affordable, reliable, and connected EV options.

The MCI suggests that connected car services—offering benefits like advanced navigation and security features—could provide the premium experience that convinces hesitant consumers to embrace EVs.

In response to these challenges, the EV industry must realign its strategy to address affordability, infrastructure, and consumer trust.

While the current slowdown might seem like a plateau, it offers valuable lessons for manufacturers, suppliers, and policymakers on how to regain momentum in the EV transition.