To gain a better understanding of some of these factors in the U.S., we conducted a survey of U.S. consumers on EVs, focusing on areas such as purchase considerations and price elasticity. Comparing these results with those of a similar survey we ran in July 2022 yielded overall encouraging results for U.S. EV adoption. The key takeaways were:
Though U.S. EV penetration continues to lag other geographies, we continue to believe that the structure of the U.S. auto market lends itself well for a potential sharp and sudden inflection in EV demand. This is because vehicle density in the U.S. — the ratio of vehicles per household — ranks highest in the world at greater than 2x, with around 285 million light vehicles on the road. EVs have gained in popularity not only for being electric, but also for containing state-of-the-art connectivity and over-the-air (OTA) software updates often with next-generation advanced driver assistance systems (ADAS/L2+) features.
Separately, and on a global scale, our latest EV penetration assessment yields a number of takeaways, including: (1) a significantly higher plug-in hybrid (PHEV) penetration outlook in China, (2) slightly lower U.S. EV penetration assumed through 2030; (3) a stronger EV adoption outlook in Europe; and (4) a modestly higher EV penetration outlook in China, Europe, and the U.S. in 2025.Authors: Itay Michaeli,Uzair Alam, CFA,Justin Barell,Sanjay Bhagwani, CFA,Jeff Chung,Bradley Eyster,Paul Hwang,Arvind Sharma,Martin Wilkie,Arifumi Yoshida,