Consumer Education Can Help Keep the Electric Vehicle Momentum Going

U.S. automakers have engaged in a costly, decades-long effort to pivot into new electric vehicle technology. Consumer interest was low at first, but electric vehicles now account for a fairly substantial 9 percent share of the U.S. auto market. A new report from the consumer intelligence firm JD Power suggests that consumer education could help keep the trend alive, despite the challenge of new federal policies.

The bottom-line case for electric vehicles

Until recently, electric vehicles were more expensive than other cars partly due to the high cost of EV batteries, leading automakers to focus primarily on the luxury market. In May of 2023, the up-front price of an electric vehicle was $8,400 more than a comparable gas-powered car.

That price gap plummeted to just $1,500 by June of 2024 following a years-long drop in the cost of batteries, enabling automakers to attract potential buyers with more affordable vehicles. 

In addition, electric vehicles can outperform other cars on a total cost of ownership basis taking into account fuel and maintenance savings as well as up-front costs. Last year, JD Power reported that electric vehicles can surpass other cars on total cost of ownership within just five years.

The five-year window includes the up-front savings from various federal and state EV incentives. Even without incentives, though, the savings can add up. The average length of car ownership in the U.S. is approximately 12 years, meaning that fuel and maintenance cost advantages continue to accumulate for drivers who keep their cars longer.

More drivers want electric vehicles

JD Power’s new report reflects the sales impact of more affordable EVs. Released on Tuesday, the report credits less expensive, mass-market models with motivating more car buyers to purchase an electric vehicle in 2024. Pure battery-electric vehicles achieved a respectable market share of 9.1 percent in 2024, a significant increase from the 2023 share of 8.4 percent, the report finds. 

EV owners were also more satisfied with their vehicles in 2024 than in the previous year, partly due to the increased availability of more mass-market vehicles. “Owners of mass market BEVs [battery electric vehicles] once again experience fewer problems than do owners of premium BEVs,” the report reads. 

In another indication of strong consumer sentiment favoring electric vehicles, 94 percent of electric vehicle owners said they are likely to consider buying another one. “Manufacturers should take note of the strong consumer commitment to EVs as the high rate of repurchase intent offers the ability to generate brand loyal customers if the experience is a positive one,” JD Power advises. 

The importance of consumer education

As JD Power notes, incoming U.S. President Donald Trump has taken several actions to stop, if not reverse, the electric vehicle momentum. He has lobbied for eliminating federal EV tax incentives and disrupted a $5 billion Joe Biden-era initiative aimed at installing more public charging stations on major highways.

These actions have created a challenging environment for EV sales. However, the policy shift in Washington has not changed the fact electric vehicles can outperform other cars on total cost of ownership, and that has created a window of opportunity for automakers.

Consistent with other studies revealing a wide, persistent gender gap in EV sales, JD Power finds that many, if not most, auto dealers fail to take advantage of the opportunity to inform prospective buyers on the potential for a total cost of ownership advantage. In the survey, only 12 percent of first-time buyers received information about these long-term savings. 

“Dealer and manufacturer representatives play the crucial role of front-line educators, but when it comes to EVs, the specific education needed to shorten the learning curve just isn’t happening often enough,” Brent Gruber, JD Power executive director of EV practice, said in a statement. “The shortfall in buyer education is something we’re seeing with all brands."

Next steps for EV sales in the U.S.

In its report, JD Power anticipates that electric vehicle sales will stagnate this year. Educating more consumers and businesses on the total cost of ownership advantage of electric vehicles is one way that automakers can prove the prediction wrong. Providing prospective buyers with specific information about how electric vehicles work is another. In the report, JD Power also finds that only 46 percent of first-time EV buyers were informed about the specific features of their car.

Electric vehicle stakeholders can also build their case by helping consumers keep track of improvements in EV charging availability. In New York, for example, new green bank funding is available for public charging stations. Some automakers may also offer free home charging stations, as Ford did last year. In another significant development, a growing number of startups have been incentivizing charging station installation at rental properties, opening up new marketing opportunities.

U.S. automakers are facing headwinds, but they also have room to improve their outreach to prospective buyers. In the meantime, Trump is facing challenges of his own. His administration has lost one lawsuit after another, raising the potential for restoration of the charging station program and other Biden-era initiatives approved by Congress in support of the electric vehicle transition.