Boston and London – 80% of U.S. electric vehicle owners view tax incentives as important to purchase decisions and most drivers in the U.S. and U.K. worry about range and lack of public charging, according to new survey data from Altman Solon.
The survey found that among non-purchasers of EVs, 92% of U.S. consumers cited a shortage of charging facilities and perceived range as the biggest obstacle to EV purchase. Similarly, 84% of U.K. consumers cited these same factors as impediments to purchasing an EV.
These consumer concerns are happening as the new U.S. administration and Congress have vowed to stop public investment in public charging stations and halt tax incentives for new EV purchases.
“Our survey shows that the uncertainty of continued tax incentives and investment in the charging network could scare off consumers from new EV purchases,” said Altman Solon Partner Daniel Mazor. “More than ever, it’s clear that technology and infrastructure advancements in battery life and widespread, reliable charging stations are critical for the long-term adoption of full EVs – and you’re seeing an industry that is working to innovate at a rapid pace to help sustain sales growth.”
Mazor highlighted that EV makers will need to see a significant uptick in interest in autonomous driving and other innovations to attract the next wave of EV buyers. He cited Tesla’s recently renewed interest in wireless charging pad technology alongside their teasing of Robotaxis with no charging port as examples of how OEMs are working to future-proof their investments.
The survey also found that half of U.S and U.K. consumers who are interested in an electric vehicle (EV) planned to buy a plug-in electric vehicle (PHEV).
“PHEVs were once considered a bridge to a fully electric future, but ongoing concerns over range anxiety and the charging infrastructure have made them durable options for consumers,” said Altman Solon Associate Partner Nick Kramer. “PHEVs are the cure for range anxiety and can buy automakers and EV-leaning consumers some time as battery range grows and the charging network is built out.”
Other key findings include:
- 12% of U.S. respondents own a PHEV or Full EV (vs. ~9% of cars on the road), and 32% think they will buy one for their next car; this is down from a 2022 high of 42% of U.S. consumers who intended to buy an EV for their next car.
- 85% of consumers who plan on purchasing an EV in the U.S. and the U.K. are motivated by savings on maintenance and gas.
- Consumers in both markets drive approximately 45 minutes a day, putting them well within the range of a fully charged EV but at the upper end of what PHEVs can cover with a single ~30-mile charge.
Altman Solon’s report was informed by a survey of nearly 2,000 consumers across the U.S. and U.K. and in-depth interviews with a wide range of industry executives.
About Altman Solon
Altman Solon is the world’s largest strategy consulting firm focused exclusively on the Telecommunications, Media, and Technology (TMT) industries. We work with market leaders, challenger brands, and investors across TMT sectors. We support our corporate clients in identifying, developing, and implementing company strategies, new market entry approaches, digital innovation, and global M&A. We help our investor clients understand markets, conduct due diligence, and make high-stakes decisions with confidence.
Altman Solon works with seven of the top 10 global telecommunications companies, seven of the top 10 global tech companies, and six of the top 10 global media companies. Over the past twenty years, we have helped develop and implement era-defining strategies that have shaped the TMT sector.
Altman Solon has an extensive international reach with offices in Amsterdam, Boston, London, Los Angeles, Mexico City, Milan, Munich, New York, Paris, San Francisco, Singapore, Stockholm, Sydney, Warsaw, and Zurich, with successful projects completed across the globe in more than 100 countries.
