AAH #696 - Struggling To Sell EVs: Getting Inside The Consumer's Head

·1 hr 1 min·5 clips

J.D. Power's Elizabeth Crear explains why EV interest dropped from 29% to 22% of shoppers.

The episode begins with a brief discussion about Roger Penske's success at the Indianapolis 500 before transitioning to the main topic. Hosts Gary and John introduce guest Elizabeth Crear, a former Jeep and Ram chief engineer now at J.D. Power. Crear presents data from J.D. Power's monthly shopping survey, revealing that consumer likelihood to consider an EV has declined from 29% last year to 22% currently. The primary rejection reasons remain lack of public charging and affordability. She notes a correlation between gas prices and EV interest, with higher prices boosting consideration. Crear explains that only 40% of the market had a viable EV substitute last year, rising to 54% this year, but 'true adoption' has decreased. The conversation delves into charging infrastructure, highlighting Tesla's supercharger network at 96% reliability versus 81% for the rest of the industry. Crear discusses the impact of Tesla opening its network to other brands and potential crowding issues. She shares that 96% of EV owners are likely to consider another EV, with 85% charging at home. The hosts and Crear analyze market segments, noting that the compact SUV EV segment has seven major competitors vying for an estimated 270,000 units. Crear reveals that average EV incentives have surged from $500 last year to $6,600 currently. She addresses plug-in hybrids, stating that BEV owners report higher satisfaction scores than PHEV owners, and PHEV owners are 70% more likely to consider a BEV next. The discussion covers consumer demographics, with Gen Y and Gen Z showing higher interest despite income constraints. Crear touches on Chinese competition, noting the small Seagull EV targets a 1% U.S. segment but warns of broader threats. She explains that environmental concerns rank lower than performance, range, and cost for most shoppers. The episode explores pickup trucks, with Crear suggesting the Ram E-Rev could appeal to conservative buyers needing capability. Profitability challenges are discussed, with Boston Consulting Group noting a $6,000 loss per $50,000 EV sold. Crear shares state adoption disparities, with California at 40% and Michigan at 5%. She notes Tesla no longer leads in premium EV ownership satisfaction, with BMW taking the top spot. The episode concludes with reflections on brand loyalty and launch challenges.

As heard by us

EV adoption looks different when range, gasoline prices and buyer confidence keep changing the question.

EV interest is treated as a question of buyer confidence, not just product specs. The episode looks at how concerns shift with gasoline prices, commute length and understanding of charging, then compares this year's findings with last year's study.

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Why you'd press play

You want to know why a commute over 50 miles can make EV consideration feel less settled this year.

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