This year has witnessed numerous doomsday headlines for the electric vehicle (EV) market as new car sales temporarily leveled off and some stakeholders, such as Hertz, Ford and GM, shifted their near-term strategies around electric transportation.

Despite these bumps in the road, 2024 is expected to be another banner year for EVs, with “around 17 million new fully electric or plug-in hybrid vehicles (PHEV) will be sold worldwide” – up from just under 14 million sold globally last year.

In the United States, sales are expected to hit yet another record, and consumer interest remains high. According to the recent “Electric Vehicles: Exploring Consumers’ Cost Concerns” survey from the Smart Energy Consumer Collaborative (SECC), 54 percent of Americans that don’t currently drive an EV are interested in purchasing one in the future.

However, the new Snapshot Survey did reveal several cost-related challenges consumers are facing on the road to electric transportation. Here are three key takeaways on cost barriers to EV adoption from SECC’s nationally representative survey:

1. The purchase price is the top cost-related impediment.

Unsurprisingly, the purchase price for EVs is the main cause for concern among consumers who don’t currently own an EV, with 64 percent of these consumers citing this as a barrier. Additionally, when asked to select one cost-related barrier that has the biggest impact on EV ownership, purchase price really rises to the top – 40 percent of non-owners said this was the top barrier, with the next highest barrier at 14 percent. The survey also revealed a general lack of awareness of tax credits and rebates for EVs (from the government and electricity providers), both of which can substantially reduce the purchase price.

2. Consumers are also concerned about batteries and home chargers.

While purchase price is clearly the top cost-related barrier, consumers are also concerned about the costs around installing a home charger and unexpected battery costs. Fifty-five percent of current non-owners cite home charger installation costs as a barrier, and 48 percent mention battery costs. However, it’s interesting to note the discrepancy between non-owners that are interested in purchasing an EV in the future and those that are not. The likely purchasers are noticeably less concerned about charger installation and battery costs and are predominately concerned about the purchase price.

3. More education is needed on ongoing maintenance costs.

Research has found that EVs – which have fewer moving parts and don’t require oil changes – can save consumers thousands of dollars on maintenance costs over the lifetime of the vehicle; however, this information may not be reaching consumers as 38 percent of current non-adopters cited regular maintenance costs as a barrier to EV ownership. In addition, when asked whether they had heard of any cost benefits to EVs before taking the survey, just 17 percent had heard that EVs have lower maintenance costs than standard gas vehicles. If there is a silver lining, it’s that a quarter of those open to EVs are aware of the lower maintenance costs compared to just nine percent for those that are not open.

It turns out that the so-called EV slowdown may “just be a blip” and that we are likely looking at “an adolescent industry on the verge of its next growth spurt,” according to a recent analysis from Bloomberg Green. The new survey data confirms that many current non-adopters of EVs are interested in electric transportation; however, there are clear gaps in consumer knowledge and awareness. Electricity providers and other stakeholders have an excellent opportunity to present consumers with factual, unbiased information about EVs – especially the related costs – and help them determine if they should go electric for their next vehicle.

To learn more about the cost-related challenges consumers face on the road to electric transportation, view the “Electric Vehicles: Exploring Consumers' Cost Concerns” infographic here. Members also have access to slides with the full survey results.