Consumers sustain interest in EVs but range anxiety still a concern

This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter.
Tariffs and political uncertainty have disrupted the automobile market, but consumers are no less likely to consider purchasing electric vehicles, according to a recent study by J.D. Power.
The 2025 U.S. Electric Vehicle Consideration Study, released May 15, found that 59% of vehicle shoppers said they were at least somewhat likely to consider an EV — the same rate the study reported one year ago.
Between January and April 2025, J.D. Power surveyed 8,164 people who were planning to purchase a vehicle within a year on their intent to consider an EV. Per the report, 24% of shoppers said they were 'very likely' to consider purchasing an EV, while 35% said they were 'somewhat likely.'
In fact, according to April Cox Automotive data, the EV market continues to grow. Compared to the same period last year, U.S. EV sales increased 11.4% in the first quarter of 2025.
'Despite the market volatility, EVs have found a solid ground for consumer consideration,' Brent Gruber, executive director of the EV practice at J.D. Power, said in a statement.
J.D. Power's findings shed light on consumer wants and needs, including the ways people shop for EVs and their biggest concerns with the vehicles.
For instance, EV shoppers are likely to look at more vehicle brands — 'cross-shop' — than those shopping for ICE vehicles. The study reported that those likely to consider EVs look at an average 2.8 or 2.9 brands, while a previous J.D. Power study found that people shopping for gas-powered vehicles considered an average of 2.5 brands.
'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,' Gruber said, adding that the study revealed that EV shoppers also consider EVs from both mass market and luxury brands.
Yet range anxiety remains a key concern, as 52% of vehicle shoppers cited charging station availability as a reason to forgo purchasing an EV. At the same time, another long-standing concern with EVs — their expense — fell in importance. The study found that 43% of shoppers said EV purchase price was a reason to avoid buying an EV, compared to 47% last year. In addition, 33% of shoppers stated they were concerned with EV cost of ownership, compared to 35% of shoppers in 2024.
Much of the growth in EV sales can be attributed to more affordable, mass-market automakers such as General Motors.
Still, the issue of EV affordability might box out the age group most interested in purchasing them — younger shoppers ages 25-49. '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.
According to Gruber, the industry needs to focus on affordability and consumer education to continue to drive EV growth. Less expensive EVs would address what he described as the 'pent-up demand for more affordable products,' while improving consumer education could 'ease concerns' about EV ownership, as many, like public charging availability, 'are less problematic than they might seem when it comes to actually owning an EV,' he said.
Recommended Reading
New York expands EV purchase, charging equipment incentives

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Axios

18 hours ago

• Axios

CarMax says tariff fears juiced used car demand in April

Driving the news: CarMax reported Friday that it sold 9% more used vehicles to retail customers in the most recent quarter than it did a year earlier, leading to a 7.5% rise in retail revenue. Tariffs may have played a part. CEO William Nash noted a demand uptick correlated to tariff speculation, with April coming in as the strongest month in the company's quarter — but stressed the business was already growing before that. Between the lines: Nash acknowledged that car shoppers are worried about price hikes and the resumption of federal student loan obligations. About 30% of the company's customers have student loans. "But I don't think it's necessarily showed up so much in the buying habits at this point," he said in terms of pricing. CarMax shares closed up 6.6% Friday on the report. Zoom out: Industrywide, wholesale used vehicle prices — the cars sold to other dealers — rose 1.7% from May through the first half of June, according to Cox Automotive's Manheim Used Vehicle Index. The bottom line: Tariffs haven't warped the used car economy ... at least not yet.

The Drive

2 days ago

• The Drive

Nissan Thought Way More People Wanted an SUV That Doesn't Look Tough

The latest car news, reviews, and features. The Nissan Murano is redesigned for 2025, and y'know, it's pretty good. The issue is, it competes with lots of midsize crossovers, almost all with an off-road bent. Market research will show you that's what's popular these days, but Nissan went another direction with the Murano and made it a snazzy urban runabout. It's a bold move, and one that seems to be working out in some respects, but Nissan made so many that it's reportedly offering dealers $1,000 to $2,000 apiece to take on new inventory. Word of the increasing Murano overflow comes from an Automotive News report. It cites Cox Automotive data showing a five-month supply of Muranos at dealers across the United States, a 15% increase over the 133-day supply measured in March. This reportedly has Nissan dialing back the total number of Muranos it expects to build this year, cutting 21% from its May projections down to 47,410. With Nissan betting more on the refined and elegant ethos of the current-gen car, it was difficult to know how it would fare against the adventure-vibe competition. Nissan Vice President of Model Line Marketing Operations Jeff Pope explained to Automotive News, 'Trying to understand what kind of segment share you can get … and the volume that equates to is a little bit more difficult than looking at a traditional segment like Pathfinder. So we got aggressive [and] front-loaded a lot of [Murano] production.' Ah, yes, the Pathfinder: Nissan's other midsize crossover that's doing quite well, actually. Its lane is a little bit clearer, as it targets core buyers in the segment who like the idea of going off-road, whether or not they ever do. We've seen that trend spread to essentially every category—heck, even supercars. But not the Murano. Those HVAC controls are still some of the strangest I've encountered on a test car. They're touch-capacitive, so you press on the wood-grain-esque trim to toggle them. Very urban indeed. Caleb Jacobs This city-centered Murano redesign may have helped it stand out so far in 2025. Deliveries rose to 8,702 in Q1, an 84% increase over the same period last year. That means it's digging itself out of the massive hole left by the old Murano, which outsold only the Mazda CX-70 and Toyota Crown Signia in its category in 2024, because those models only first hit the market in 2024. Leaving the Murano alone for so long is why some Nissan dealers believe they're in this position. It went a decade without any serious updates before this new model dropped late last year. One retailer who spoke with Automotive News and asked to remain anonymous said, 'Nissan let the model age so much that loyal Murano customers left the brand.' If they ever get those customers back in the showroom, they might like what they find. I enjoyed the Murano for its decisive character when I reviewed it late last year, and with styling like that, it certainly stands out. We'll just have to see if it's enough to pluck people away from the four-wheeling five-seaters that everybody is clamoring for. Got a tip or question for the author? Contact them directly: caleb@

Miami Herald

2 days ago

• Miami Herald

Car buyers, dealers are both shocked by latest price trends

Tariffs have been on car buyers' minds as they've headed to lots around the country. The threat of paying an import tax on our favorite Toyotas, Hyundais and Land Rovers has motivated buyers in a way the car industry hasn't seen in years. Auto dealers' customer traffic index rose to 37 from 33 in Q1 last year. Franchised dealers reported a 10-point increase in in-person visits, the largest increase since the metric was introduced in Q3 2022, according to Cox Automotive. Related: Popular Ford newcomer overtakes Jeep in a key area "People are buying cars because they think tariffs are coming," one Mazda dealer said. "The U.S. economy remains fundamentally strong, but the recent tariffs have had a swift and measurable impact on vehicle affordability," said Cox Automotive Chief Economist Jonathan Smoke. During the first part of the year, auto dealers offered incentives to get people through the doors, leading to new vehicle affordability improving to its best level in nearly four years in March. The average price of new vehicles decreased by 0.2% in the month, according to Kelley Blue Book. The average auto payment also fell by 0.2% to $739 per month, a 1.3% decline year over year, and the median weeks of income needed to purchase the average new vehicle fell to 36.7 weeks from a downwardly revised median of 36.9 weeks in February. But new data suggests that the good times are coming to an end. Pricing trends are going the wrong way for car buyers, according to new data from the Cox Automotive/Moody's Analytics Vehicle Affordability Index, After reaching the lowest affordability point of the year in April, the index "essentially flatlined"at that level in May. "The forces that typically drive improvement – like incentives and income growth – have been neutralized by stubbornly high interest rates and stagnant prices," Smoke said. "Without meaningful gains in wages and further easing of rates, we're likely to see affordability limit demand as we move into the summer months." Related: Ford CEO Jim Farley has a strong take on tariffs The estimated average auto loan rate rose by 9 basis points in May to 9.88%, but it was still lower year over year by 77 basis points. Income growth was also strong in the month at 3.4% year over year. The average payment increased 0.2% to $756, marking the highest monthly payment since December, despite a 1.1% decline year over year. The average monthly payment peaked at $795 in December 2022. The number of median weeks of income needed to purchase the average new vehicle held steady at 37.4 weeks. Last year, it took 39 weeks of median income to purchase the average new vehicle, even though prices were 1% lower because interest rates were higher. Due to the uncertainty surrounding President Donald Trump's trade war, dealers have increased incentives to combat consumer sentiment, which has been in the tank since Trump took office. Nearly half of American drivers cite car expenses as the reason they can't save any money, and the average American spends about 20% of their monthly income on auto loans, fuel, insurance, and maintenance. Most financial experts cap the monthly income you should spend on a vehicle at 15%. According to a MarketWatch Guides survey, about 10% of drivers say they spend 30% of their monthly income on driving, while another 12% said they "found themselves living paycheck to paycheck due to the financial strain of their cars." Related: Car buyers notice a disturbing trend at the car lot The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.