What is preventing widespread electric vehicle adoption? Our report examines five critical challenges that must be overcome to accelerate uptake
Electric vehicles (EVs) will revolutionise mobility across the globe, and play a pivotal role in the decarbonisation of our economy. But although EV sales have been rising steadily, mainstream adoption is still a long way off: just one in 50 new cars sold is an EV*.
Exploring the views of nearly 10,000 consumers, fleet managers and industry specialists across eight of the world’s most important EV markets, Accelerating the EVolution finds that achieving a $36,000 price point, a 31 minute charge time and a 469km range** would rapidly accelerate the global market for EVs.
Our study also reveals that meeting these ‘tipping points’ could present a $376 billion opportunity for annual EV sales across those eight markets by 2025.
Our study spans eight of the world’s most important EV markets based on size, growth potential and maturity: China, France, Germany, India, Japan, Norway, the United Kingdom and the United States.
The majority of consumers told us that they themselves would consider buying an EV by 2024, but consumers believe that it won’t be until 2030 that the majority of new cars purchased are electric.
The study also reveals that although global attitudes to EV adoption are positive, some markets are more forward-thinking than others. Indian consumers told us they would consider buying an EV as soon as 2022, closely followed by Chinese consumers just a year later.
Our research defines mainstream adoption as the point at which 50 percent or more consumers would consider purchasing an electric vehicle. The manufacturers who can meet these five critical challenges will be well placed to win the battle for market share.
Our study shows the purchase price of an EV is the most important ‘critical challenge’ for consumers. The tipping point price tag when mainstream adoption could be achieved is $36,000, equivalent to the average price of a car in the United States. Nearly two-thirds of consumers told us that the current array of EVs on the market is beyond their price range.
The length of time it takes to charge a battery was the second most important ‘critical challenge’ for consumers, according to our research. The charge time tipping point for mainstream adoption is 31 minutes, equivalent to the length of a typical lunch break. Although this is far longer than the average internal combustion engine refuel, it is only nine minutes longer than the average break at a rest stop.
Vehicle range was the third most important ‘critical challenge’ for consumers. Our study shows that EVs need to reach a range of around 469km – equivalent to the distance between London and Paris – for mainstream adoption to be achieved. Internal combustion engine equivalents can achieve between 500 and 1,000km.
The consumers we surveyed ranked charging infrastructure as their fourth most important critical challenge. Seventy percent of consumers believe that the majority of new cars will be electric when charging infrastructure becomes as easily available as service stations.
While vehicle choice was the least important critical challenge for consumers, it was the second most important buying factor for fleet managers. Over half of consumers and fleet managers said they would consider making the switch if there was an EV-equivalent to their favourite ICE car.