Electric vehicles (or EVs) had received a big boost off the heels of the pandemic as consumer interest over environmental issues coupled with hearty government subsidies helped fuel a respectable boom in the market. However, according to new research from a Parks Associates consumer study, it seems that EV sales boom has slowed to the point of flattening.

After sending out a survey to 8,000 U.S. internet households, Parks Associates found that electric vehicle has regressed to just about 5% of respondents reporting ownership. If applied to the U.S. population, that would mean roughly six million households currently own an EV.

According to Parks Associates, the recent bankruptcy filing in June 2024 by Fisker comes as a result of the broader challenges faced by manufacturers as they navigate an increasingly competitive and economically volatile market.

“Inflation and interest rates are up, and consumers perceive electric vehicles as expensive, challenging to charge outside the home, and limited in range,” said Daniel Holcomb, Senior Analyst, Parks Associates.

“With many car manufacturers scaling back ambitions on EV production, familiarity has dropped to 19%, a low not seen since 2018. At the same time, current EV and hybrid owners, among the most affluent consumer segments, have the highest purchase intentions to buy an EV, which indicates a relatively flat growth rate for the near future.”

According to the Parks Associates study, the breakdown of EV interest is as follows:

• 22% of EV owners plan to buy an EV again
• 14% of hybrid owners plan to buy an EV, but that segment is more likely to buy a hybrid
• Just 3% of internal combustion engine owners plan to buy an EV

While prior studies showed EV owners largely remaining undeterred in the face of these issues, this new research by Parks Associates seems to show that the combined headaches of cost and lack of infrastructure is finally starting to wear on owners, thereby impacting sales.

“Our research shows key inhibitors are the perceived cost and lack of charging stations — 65% of consumers shopping for a vehicle cite at least one of three charging-related factors as a reason not to buy an EV,” Holcomb continued.

From the article, "EV Sales Growth Flattens Following Pandemic Peak" by Nick Boever