TECH - Affordability Not Demand Poses Challenges For Potential EV Buyers: Report | Benzinga
Despite growing interest in electric vehicles (EVs), high costs are proving to be a speed bump for potential buyers, leading to a slowdown in demand.
As per a Business Insider report, there is a significant number of individuals interested in EVs, but the hefty price tags, averaging over $50,000, are discouraging potential consumers. According to Mike Austin, an EV industry analyst at Guidehouse Insights, the market has hit a “trough” in the adoption curve.
Dealers have noticed a shift in buyer demographics from devoted EV enthusiasts to average customers weighing their options between EVs, hybrids, and gasoline cars. Many cannot justify the extra upfront cost of going fully electric.
Responding to this slower-than-expected growth in EV demand, major automakers like Ford (NYSE:F) and General Motors (NYSE:GM) have reevaluated their EV strategies. Ford has paused $12 billion in planned EV investments, while General Motors has delayed its target of building 400,000 EVs by mid-2024.
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