Charging Stations Hold a Key to Mass EV Acceptance in the U.S.

by Deborah Grieb, Director of Marketing and Consumer Insights

An extension of AutoPacific’s renowned Future Attribute Demand Study (FADS), the EV Consumer Insights Study is comprised of licensed drivers aged 18 and older who reside in the United States and plan to acquire a new vehicle within the next three years. Their EV ownership, acceptance and rejection are gathered from a series of questions regarding their current vehicle and future purchase plans.

We’re excited about this study because it really digs into EV acceptance and rejection, yet also provides extremely useful insights that can help to build the reliable and enjoyable public charging infrastructure necessary for the future of EVs.

42% of future EV considerers and intenders have concerns about finding safe and reliable charging on-the-go.

Confidence in Public EV Charging Station Reliability and Safety Required

The study reveals that over 42% of consumers who plan to acquire, or will consider acquiring, an EV in the near future have concerns about finding reliable and safe charging on-the-go. Additionally, 41% of EV rejectors, those who will not consider acquiring an EV in the near future, say a lack of public charging infrastructure in their area is a reason for not considering going electric, ranking 3rd in rejection reasons behind the high cost of battery repair or replacement (49%) and concern about losing charge and being stranded (48%). Current EV owners, who are likely familiar with public charging station needs, mimic the concerns though at a lesser rate than non-owners with 30% naming finding reliable and safe on-the-go charging as concerns for EV ownership.

DC Fast Chargers Necessary for Widespread EV Implementation

According to the Department of Energy, there were close to 30,000 public DC fast charging stations in the United States at the beginning of 2023, and many more will be available in the next few years. However, AutoPacific notes that with the bulk of these chargers being in EV-friendly states like California, many parts of the U.S. are and will remain charging “deserts” for years to come, hampering EV adoption in those areas as well as discouraging long-distance travel in EVs. When asked about their concerns regarding EV ownership, 48% of future EV considerers and intenders and 36% of rejectors say they're concerned about charging times. Couple concerns over finding a charging station with concerns over charging time and it's obvious that aggressive nationwide deployment of DC fast chargers is going to be instrumental in growing and maintaining EV ownership.

AutoPacific’s President and Chief Analyst, Ed Kim, had this to say: “We’ve long said that the deployment of widespread and reliable public EV charging is at least as important as the EV products themselves and the data from our new EV Consumer Insights Study conclusively demonstrate this,” says AutoPacific's president and chief analyst, Ed Kim. “EVs have so many potential advantages, but ultimately they are irrelevant to consumers if they don’t have a way to quickly, safely, and reliably charge them while on the go.”

Nearly 1/2 of future EV considerers and intenders, and 26% of owners are concerned about the amount of time it takes to charge an EV

Nearly 1/2 of future EV considerers and intenders, and 26% of owners are concerned about the amount of time it takes to charge an EV

It should be noted that the median time expected to charge a nearly empty battery to 80% using a DC fast charger is similar across the studied subgroups: 32 minutes from experienced owners and EV rejectors and 35 minutes from future considerers and intenders.

It remains to be seen if the auto industry’s recent moves to improve the state of public charging, most notably the adoption of the North American Charging Standard, as well as the newly formed automotive OEM consortium to promote more DC fast charger deployment, will sufficiently appease consumers’ concerns.

Human Error vs Intelligent Technology: New Vehicle Intenders Want Tech to Help Avoid Careless Mistakes

by Deborah Grieb, Director of Marketing and Consumer Insights

A multitude of features and technologies exist, or will soon exist, to assist drivers at various levels of intervention. With new vehicle penetration levels increasing, are consumers finally embracing these advanced safety systems and which ones are most appealing?

71% of new vehicle intenders say their next new vehicle should “have technology that prevents careless mistakes,” according to AutoPacific’s latest Future Attribute Demand Study. The study includes responses from over 11,000 licensed drivers in the U.S. who plan to acquire a new vehicle within the next three years. Does this mean they’re ready for autonomy? Not quite.

While nearly half of these respondents want Unresponsive Driver Stop Assist, a feature classified as autonomous in the study, other autonomous driving features aren’t quite as welcomed, with full autonomy with option to drive desired by 30%. Mistake-avoiding technology seekers are more likely to be interested in technologies they perceive to improve safety and visibility.

Advanced Safety Technology Placement

While gender doesn’t play a differentiating role in who and where to target for placement of these technologies, age and lifestage apply, with technology seekers more likely to be Gen Y (+14%pts) with 1 or 2 children in the household (+10%pts). Additionally, these consumers are more likely to intend a luxury brand vehicle and have a stronger interest in alternative powertrains, from hybrid to electric. AutoPacific notes that the trend has been, and will likely continue to be, that tech seekers also want alternative powertrain vehicles, making them ideal candidates for introducing new “mistake-avoiding” technologies.

Safety and Convenience Features Top Most-Wanted List in AutoPacific’s 2023 Future Attribute Demand Study

by Deborah Grieb, Director of Marketing and Consumer Insights

Results of AutoPacific’s recently released Future Attribute Demand Study (FADS) show comfort and convenience features at the top of new vehicle shoppers’ wish lists. Our annual study contains responses from over 11,700 licensed drivers in the U.S. who intend to acquire a new vehicle within the next three years. Respondents were asked a range of questions from what brands they will consider for their next new vehicle to what type of vehicle and powertrain type they intend to acquire, but most importantly, what features they want to have in that vehicle. AutoPacific’s 2023 FADS measures demand for 145 features ranging from autonomous driving to infotainment technologies to seating, including features specific to certain segments and powertrains.

The most wanted feature for 2023? LED fog lights. New to the survey this year, LED fog lights are desired by nearly half of all respondents (48%). In recent years, not only have fog lamps become common even on mid-grade versions of mainstream vehicles, but they have also largely made the transition to LED as they last much longer and emit brighter white light for improved visibility in adverse conditions.

Consumers Want the Convenience of In-Vehicle Wireless Charging

Wireless charging pads for portable electronic devices take two of the top 10 spots this year, 2nd and 5th, as 48% of new vehicle intenders want a wireless charging pad for front passengers and 40% would like one for rear passengers. We’ve seen that cutting the cord has been a common theme in households for years and vehicles are following suit. From wireless Apple CarPlay to wireless device charging, providing consumers with a clean and convenient vehicle interior by ditching the cords has mass appeal.

An Autonomous Driving Feature Finally Finds A Big Audience

Also new to the survey this year is “unresponsive driver stop assist,” an autonomous driving feature that can automatically move the vehicle to the side of the road and come to a complete stop if the vehicle senses that the driver has become incapacitated. This feature is crucially important should a driver have a medical emergency, like a stroke, seizure, or lose consciousness. AutoPacific expects this feature to become more common in the coming years, especially as hands-free semi-autonomous drive features become more widely available.

While autonomous driving features typically appeal more to males than females and younger consumers over older consumers, this new safety-focused autonomous feature does the opposite with slightly higher demand from females and greatest interest from those over age 60 (47%) and may help provide greater consumer acceptance and comfort with autonomous vehicle technology.

Consumers Choose Features, not Vehicle Type to Express Their Personality and Style

by Deborah Grieb, Director of Marketing and Consumer Insights

How much do consumer views and attitudes dictate the type, brand and features for their next new vehicle? AutoPacific’s extensive battery of psychographic statements provide clients the ability to dig deeper into consumers to develop consumer profiles and feature packages based off those profiles, as well as target marketing strategies. AutoPacific looked at two opposing views related to vehicles and driving: those who say their vehicle should express their personality/style/ individuality and those who consider a vehicle to be a means of transportation rather than a source of pleasure. Using top responses from a 4-point scale of applicability (4 = applies perfectly), findings reveal a strong impact on feature demand but minimal differences in vehicle type and powertrain preferences.

We believe lifestage plays a major role in vehicle purchase decisions, despite a consumer’s views and opinions about vehicles and driving. Income, children and daily driving responsibilities often force a consumer into one vehicle over another despite what their heart may be telling them, leading to personalization through features.

For example, 8% of respondents who want an expressive vehicle say they’ll purchase a 2-row midsize SUV or crossover, but that number increases to 11% when looking at respondents without children and decreases to 4% for this with 3 or more children. Conversely, only 4% of respondents without children plan to purchase a 3-row large SUV or crossover, compared to 12% of respondents with 3 or more children.

How do Automakers Appeal to Different Personalities and Attitudes? Through Features & Technology

In this case, 51 of the 121 features surveyed have higher demand from respondents who want to express their personality/style/individuality with their vehicle, compared to those whose vehicle is simply a means of transportation. Personalization features such as illuminated brand logo, interior ambient lighting with selectable colors and LED accent lighting with welcome and goodbye animation are the most likely to be desired by personality seekers. Following close behind are upscale features that enhance the vehicle interior experience, such as branded premium audio, leather seats and heated and ventilated/cooled front seats. The ways to express yourself through your vehicle are exponential. From outward expression with lighting and color to interior expression through seating, sound (both interior and exterior), and technology.

Range and Charging Time Top Reasons Consumers Are Saying “No” to EVs

by Ed Kim, President and Chief Analyst

Results of a recent online survey we issued indicate range and charge time issues are mostly to blame for deterring potential future electrified vehicle (EV) buyers. The study was issued to AutoPacific's proprietary panel of respondents who are licensed drivers ages 18 and older and reside in the U.S. Of the 827 survey respondents, 50% say they would consider an EV in the near future and 50% say they will not.

As a precursor to our comprehensive EV Rejector Study planned for release later in 2023, this smaller panel survey serves to test some initial hypotheses while the larger future study is being designed. It’s not a secret that those who refuse to purchase an EV are concerned about range and charging, but we now know more specifics about these deterring elements, like distance to charging station, availability of charging at work, dwelling style, etc. According to consumer responses, the top reason cited for not considering an EV in the future is “I would be worried about losing charge and being stranded,” followed by “I think the charge required to wait for an EV to charge is too long.”

Misperceptions and/or Lack of Charging Locations Deter Potential Buyers

Of respondents who will not consider an EV, 45% believe their home would require extensive and expensive upgrades in order to successfully charge an EV, compared to only 14% of EV acceptors. Additionally, only 6% of rejectors say either their employer offers a place to plug in or a public charging station is within close walking distance, compared to 30% of EV acceptors. At this point, consumers who can adopt an EV lifestyle most easily are the ones who are going to become EV owners. While there is a certain level of misunderstanding about at-home chargers, and there’s certainly a lack of public charging infrastructure, it will take a combination of education and availability to grow the EV acceptor population.

Electrified Vehicles Priced Under $35,000 Could Persuade Some Initial Rejectors

EV cost is also a deterrent, as 41% of respondents cited “buying and/or operating an EV is too expensive” as a reason for rejection. However, a combined 35% of those respondents say they would change their mind if an EV was priced below $35,000. Given the more affordably priced EV entries on the horizon, it’s nice to know there’s not only an existing market for a cheaper EV among EV acceptors, but that a lower price point could sway some initial rejectors to enter the market.

This finding highlights the importance of getting more affordable EVs into the marketplace as they will be crucially important in achieving federal and state-level goals for mass EV adoption. If mainstream middle-class consumers can’t afford them, EVs cannot become truly mainstream vehicles.

U.S. Light Vehicle Sales Forecasted to see a 1 Million Unit Increase for 2023

by Ed Kim, President and Chief Analyst

AutoPacific recently released its forecast of U.S. light vehicle sales, predicting 2023 will reach a year-end total of 14.8 million units sold. Up from a disappointing 13.8 million units sold in 2022, the 1-million-unit increase can be attributed to a few factors, including continued supply chain recovery, and electric vehicle (EV) growth. Supply chain issues are continuing, but at the same time they are easing as well, presenting the main driver for increased sales in 2023. We predict a 5-year peak growth is reached in 2026 as sales level out as pent-up demand, originating from both pandemic-induced supply issues and the looming recession, is fulfilled.

AutoPacific's annual forecast of U.S. light vehicle sales predicts 14.8 million units sold in 2023, increasing to 16.7 million units in 2026.

Introduction of New, Inexpensive Mainstream EV Models Fuels Growth

EVs accounted for 5.6% of total U.S. light vehicle sales in 2022, up from 3.3% in 2021. Of those 2022 sales, 20% came from luxury brand EVs, a new high since EV sales began over a decade ago. Starting in 2023, AutoPacific predicts an increase in mainstream EV market share with the introduction and sales growth of new, inexpensive mainstream models like the Chevrolet Equinox EV and Tesla’s promised sub-$30,000 entry EV.

These new, inexpensive mainstream models will help grow EV sales beyond the affluent early adopters of today to the mainstream consumers that will ultimately be critical for widespread adoption of EVs.

While vehicle sales growth is expected in 2023 and a few years beyond, all indications are that the United States continues to face the threat of a recession. AutoPacific expects this potential recession to be relatively mild; however, the severity and its impact on this year’s auto sales remain a wild card.

High Fuel Prices Likely to Impact Vehicle Type Before Powertrain

by Ed Kim, President and Chief Analyst

Since 2005, AutoPacific has conducted a bi-monthly online survey designed to measure the impact of fuel prices on consumers’ vehicle purchase decisions and driving behavior. Our Fuel Price Impact Study (FPIS) puts years of trend data to work to understand how consumers react to fluctuating fuel prices and how the impact has changed over time.

Historically, AutoPacific’s data have shown vehicle owners to be very tied to their current vehicle type. Whether a luxury brand owner or a mainstream brand owner, next vehicle intentions often mirror the current vehicle, or at least remain in the same macro category (car, truck, SUV, minivan). Lifestyle and family dynamics dictate vehicle segment, and for many, that means they’re locked into a specific vehicle type for 5-10 years.

Independent of fuel prices, AutoPacific’s Future Attribute Demand Study (FADS) asks respondents what type of vehicle they intend to purchase next. While current luxury brand car owners are slightly more committed to their current segment, more than 70% of all current owners intend to stay within the same macro segment, with the exception of Mainstream Large SUV/XSUV 2-row owners, who may be more likely than other SUV/XSUV owners to migrate to a car or truck next time.

Whether a luxury brand owner or a mainstream brand owner, next vehicle intentions often mirror the current vehicle, or at least remain in the same macro category.

What happens when fuel price is added to the mix?

When asked about the impact of fuel prices on their next vehicle type and powertrain intentions in AutoPacific’s bi-monthly FPIS, only 24% of current luxury brand owners and 21% of current mainstream brand owners say higher fuel prices would change their next vehicle type. The catch? Fuel prices must increase by approximately $1.25/gallon from where they are now for that to happen. Respondents are more likely to change powertrain type, but at a higher fuel price than for vehicle type.

Current luxury brand owners say it would take a fuel price of $5.96 per gallon (median) for them to change powertrain type – a $1.86/gallon increase over the price they’re currently paying. Numbers are similar for current mainstream brand owners, who would change powertrains at a price $2.05/gallon higher than what they’re currently paying.

Right now, a relative lack of alternative powertrain choices within vehicle segments means that it’s often easier for a consumer concerned with fuel economy to stick with a gasoline engine and migrate to a more efficient vehicle type. The ease of transition and comfort level with a different powertrain technology remains a challenge for the auto industry that only time can rectify.

Respondents are more likely to change powertrain type, but at a higher fuel price than for vehicle type.