Consumers appear to be increasingly interested in buying electric vehicles, but price concerns remain a major roadblock, a situation that isn’t getting better amid a chip shortage that in some cases has driven up prices for important components.
Tanaka Precious Metals, a company that extracts and recycles precious metals from scrap for automotive manufacturing uses, surveyed 1,250 consumers in December 2021, and found that 60% of those surveyed are considering buying an EV in the next 12 months, while 40% are considering the purchase of a gas-powered car. That’s a significant difference from a recent Deloitte study that found buying intent more heavily weighted toward non-EVs.
The biggest hurdle that stands between these consumers and the actual purchase is the cost, according to the Tanaka survey. About 62% of survey respondents intending to buy EVs cited cost as their biggest concern in buying an EV. This concern also was the reason why 56% of consumers who aren’t planning to buy an EV in the next 12 months landed on that particular side of the fence.
The upfront cost of buying an EV still averages around $10,000 more than buying a gas-powered car, and it’s still possible that rising prices for in-car chips could continue to nudge prices higher. However, aside from upfront costs, comparative studies of the long-term costs of each type of vehicle have shown EVs to be a better value over time.
Regarding the chip shortage effect, 41% of potential EV buyers from the survey said it was a top concern about purchasing EVs, but almost all respondents–98%--said they would be willing to wait at least three months to buy an EV (presumably with the understanding that availability and/or pricing could improve in that span.)
Even though prospective EV buyers expressed patience, ultimately they will let their personal needs dictate how long they can hold out for an EV. In the survey, 89% said they’re likely to purchase a gas-powered car if they have to wait longer than they’re willing to wait, with family purposes (60%) and work purposes (53%) as the main reasons why they would settle for a gas-powered vehicle.
Lack of charging stations, always a common concern among consumers, remains so. About 44% of those surveyed said they were concerned about finding enough charging stations in their geographic areas, and 42% stated they were worried about the cost of installing EV charging equipment in their homes.
Ultimately, a fixation on upfront price differences, along with a growing awareness and willingness among consumers to buy from companies that embrace sustainable business practices could mean that automotive manufacturers need to adopt more practices that satisfy both interests. Tanaka said it can help by working with these companies to help them integrate recycled precious metals into their manufacturing plans.
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