Whether or not people are willing to see the reality of it, EVs are likely here to stay. They’re finally catching on in the US, and now people are beginning to flock to buy them. According to a new Consumer Reports study, automotive brands that don’t offer enough EV options for buyers are destined to lose market share.
Consumer Reports (CR) points out that it’s only going to become increasingly difficult for automakers to convince people to keep buying gas-powered cars in the future. As EVs become more popular and prices come down, more people are going to want one. Eventually, EVs will become more and more of the norm, and many people will simply stop shopping for new gas cars.
The publication adds that since there’s currently more demand for electric cars than there is supply, the next few years are going to see a clear drop in the market for vehicles with ICE powertrains. CR’s data already shows a 350% increase in the demand for EVs just from 2020 to 2022, and it’s growing by leaps and bounds this year due in part to high gas prices and Tesla’s price cut war, which is clearly ongoing.
Tesla is currently the only brand even coming close to satisfying the growing demand, with about 50% of EV sales coming from the US automaker. Since other brands have very limited availability, people may look to Tesla even if it wouldn’t be their first choice. In addition, there are only a few mainstream options that are both widely available and competitively priced, like the Chevrolet Bolt and Nissan Leaf.
According to the CR study, it may be beyond the end of the decade before the EV supply is able to catch up with the current demand, which stands to grow in the meantime. The publication shared:
“This rising tide of demand is projected to be met by lagging supply leaving many consumers who want a BEV to choose between settling for a gasoline vehicle they don’t want, joining an ever-expanding waitlist, or just waiting it out and holding onto their existing vehicle for longer.”
Even when legacy automakers have come forward with compelling EVs, and people clearly want to buy them, there is limited availability. What’s more, even though the new electric vehicles may debut with an appealing starting price, it’s not typically the reality. Automakers often sell the more expensive models first and then eventually raise the price of the cheapest options. Green Car Reports provides the Ford F-150 Lightning and Hyundai Ioniq 5 as examples of such.
Consumer Reports goes on to point out that Toyota is a prime example of an automaker that hasn’t planned to meet the rise in demand for EVs, and now it’s up against much scrutiny for its years of pushing back against the technology.
In the end, CR believes that many people simply won’t go back to new gas cars. Instead, they’ll make do for a time until the market settles. The better technology will win as it almost always does, and then they’ll move forward with buying an electric car. Not long after this situation plays out, gas-powered cars will likely begin to be seen and referred to as products of the past.
What do you think? Has Consumer Reports hit it on the nose, or do you see it playing out differently? Share your insight with us in the comment section below.
