Investing.com - Bernstein analysts conducted a comprehensive survey of 1,200 US consumers, aiming to understand their vehicle preferences and purchase intentions.
The findings, for the most part, aligned with expectations regarding brand loyalty, customer satisfaction, and affordability. However, the survey also shed light on consumers' readiness to transition to electric vehicle (EV) drivetrains and the robustness of the premium segment.
A significant insight from the survey is that the adoption of EVs is concentrated at a price point above $40,000. The majority of potential EV buyers, 54%, live in suburban and urban areas with a household income exceeding $75,000.
Furthermore, 75% of these respondents have a vehicle budget of $40,000 or more. This emphasizes the need for automakers to introduce more affordable EV options to widen consumer reach.
The high cost of EVs remains a significant barrier to adoption. This concern was echoed by both respondents considering purchasing an EV and current EV owners. This feedback underlines the urgency for automakers to decrease EV costs and offer more models below the $40,000 price point.
Despite the barriers, the survey suggests that only 29% of gasoline car drivers are considering a different drivetrain for their next vehicle. With current preferences, the implied US market share would lean towards less than 45% gasoline, 10% mild-hybrid, 25% full-hybrid, and 20% electric.
In 2024, automakers have announced the launch of 16 new battery electric vehicle (BEV) models, a substantial increase from the 9 models in 2023. This expansion of product range and price points, coupled with declining price premiums compared to internal combustion engines, and improvements in charging infrastructure, could enhance US consumers' inclination towards electric vehicles.
The survey also highlighted the need for automakers to offer flexible drivetrain choices to meet consumers' diverse preferences and budgets. Among the automakers, Stellantis NV (NYSE:STLA) seems best positioned for flexible adoption of electric or hybrid drivetrains in the upcoming model cycle. General Motors Company (NYSE:GM) plans to launch more fully electric cars across its range but needs to speed up its deployment of plug-in hybrids (PHEV) in the US Ford Motor Company (NYSE:F), having decided to postpone their next electric platform, can rely on their PHEV offering for the time being.
The survey addressed the regional representation of EV adoption in the US It found that urban areas have the highest percentage of EV penetration. However, it also revealed a relationship between current and intended levels of EV adoption based on income and car purchase budget. There seems to be a significant increase in purchase intentions for EVs among respondents with higher budgets, jumping from 6% among respondents with budgets $0-$39,999 to 25% among respondents with budgets of $40,000 or more.
Overall, the Bernstein survey emphasizes the need for automakers to focus on affordability and product diversity to drive further EV adoption. It also highlights the importance of flexible drivetrain choices to meet consumer preferences and budgets.
This content was originally published on Investing.com
