Stable Consumer Demand Highlights Importance of Affordability and Education to Drive Future EV Adoption
From J.D. Power
Despite a cloud of uncertainty around future EV interest and potential economic headwinds hanging over the automotive industry, consumer demand for electric vehicles (EVs) has remained stable, according to the J.D. Power 2025 U.S. Electric Vehicle Consideration (EVC) StudySM. The study reveals that 24% of vehicle shoppers say they are “very likely” to consider purchasing an EV and 35% say they are “somewhat likely,” both of which remain unchanged from a year ago.
“Despite the market volatility, EVs have found a solid ground for consumer consideration,” said Brent Gruber, executive director of the EV practice at J.D. Power. “To further capitalize on that interest and spur adoption moving forward, the industry needs to have products that meet consumer needs and wants at prices that are affordable. Additionally, the industry should better educate consumers about EV ownership to ease concerns—many of which, such as those related to public charging, are less problematic than they might seem when it comes to actually owning an EV.”
Following are some key findings of the 2025 study:
- EV customers active in cross-shopping: EV shoppers who say they are “very likely” to consider an EV cross-shop an average of 2.9 brands, while those who say they are “somewhat likely” shop an average of 2.8 brands. This is in alignment with the J.D. Power 2024 U.S. Sales Satisfaction Index Study, SM which found EV buyers shopped 3.0 different dealer brands compared to 2.5 for gaspowered vehicle shoppers. “As more EV options come to market, this should serve as an encouraging sign for automakers because it’s an opportunity for them to gain a foothold and pull shoppers from outside their brands. This year’s study results also show that EV shoppers consider products from mass market and premium brands alike, highlighting the opportunity to capture consumer interest with brands or products that shoppers may not have otherwise considered,” Gruber said.
- Purchase price and cost of ownership concerns decline, while charging concerns persist: Charging station availability remains the top concern, with 52% of shoppers citing it as a reason for rejecting EVs. The continuing concern with charging, coupled with flattening overall EV interest, points to a lack of progress in consumer education on these issues. However, while consumer rejection due to purchase price has dropped 4 percentage points year over year to 43%, concern with cost of ownership has dropped 2 percentage points to 33%.
- Young and higher-income shoppers show most interest but rarely overlap: Only 17% of consumers who are in the 25-49 age range have an annual income of over $100,000. “It’s an interesting dichotomy because younger consumers are the most receptive to EVs, but also the least likely to be able to afford them, while older consumers have the financial means but show less interest,” Gruber said. “Much of the recent growth in the EV space has been fueled by products from mass market brands, which demonstrates the pent-up demand for more affordable products.”
- Midwest states least enthusiastic about EVs: When looking at EV consideration by region, the lowest shares of consumers who say they are “very likely” to consider purchasing an EV live in Wisconsin and Kentucky (18% each), Minnesota (17%) and Ohio (16%). This is influenced by several factors, including concerns about EV performance in cold climates and the stronger loyalty of consumers in these regions to traditional automakers.
The U.S. Electric Vehicle Consideration (EVC) Study, now in its fifth year, is an industry benchmark focusing on gauging fully electric or battery electric vehicle shopper consideration. Study content includes overall EV consideration by geography; demographics; vehicle experience and use; lifestyle; and psychographics. It also includes model-level consideration details such as “why buy” findings and analysis of reasons for EV rejection. This year’s study measures responses from 8,164 consumers who intend to buy or lease a new vehicle in the next 12 months and was fielded from January through April 2025.
For more information about the U.S. Electric Vehicle Consideration (EVC) Study, visit https://www.jdpower.com/business/automotive/electric-vehicle-consideration-study.
