There is a fear among consumers that an electric vehicle (EV) won’t have enough range to complete all or most trips which consumers need their vehicles to make, said Lux Research adding that there is another concern that an EV will take too long to charge, potentially stranding users on the road for extended periods of time.
Although numerous studies suggest many consumers are open to considering a plug-in vehicle for their next purchase, EVs still remain less than 5 per cent of overall sales. “Those hesitant often cite concerns like limited range, slow charging, and the higher price tag,” said Lux Research in a report titled “The Electric Vehicle Inflection Tracker: 2020 Edition,”
Hence, most of automakers’ attention has now been focused on making battery electric vehicles (BEVs) that are profitable while addressing consumer pain points related to charging speed and range.
The automotive industry is under pressure to reduce emissions, both from government regulations and from consumers who are growing more conscious about the environmental impact of their vehicles. According to Lux Research, shared EV platforms and more efficient EV designs will increase profitability as EVs are poised to be the dominant powertrain by 2040.
“Consumers want to know, how far can this electric car go. Fortunately, BEVs are consistently making progress, with the average range now 230 miles. Since 2011, range has consistently increased with a compound annual growth rate of 13.7 per cent,” said Chris Robinson, Senior Analyst at Lux Research and lead author of the report.
He added that the prices have also come down with the average EV base manufacturer’s retail price in 2019 coming down to $ 33,901 from $ 42,189 in 2016, making it comparatively easier for consumers to own an electric vehicle.
According to Lux Research, it will take time between 2035 and 2040 for EVs to make up more than half of all vehicle sales. While adoption was tracking ahead of forecasts in pre-COVID-19 scenario but the impact from the pandemic will only cause short-term setbacks, it said.
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