Latest news with #BrentGruber
Yahoo
3 days ago
- Automotive
- Yahoo
Consumers sustain interest in EVs but range anxiety still a concern
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Tariffs and political uncertainty have disrupted the automobile market, but consumers are no less likely to consider purchasing electric vehicles, according to a recent study by J.D. Power. The 2025 U.S. Electric Vehicle Consideration Study, released May 15, found that 59% of vehicle shoppers said they were at least somewhat likely to consider an EV — the same rate the study reported one year ago. Between January and April 2025, J.D. Power surveyed 8,164 people who were planning to purchase a vehicle within a year on their intent to consider an EV. Per the report, 24% of shoppers said they were 'very likely' to consider purchasing an EV, while 35% said they were 'somewhat likely.' In fact, according to April Cox Automotive data, the EV market continues to grow. Compared to the same period last year, U.S. EV sales increased 11.4% in the first quarter of 2025. 'Despite the market volatility, EVs have found a solid ground for consumer consideration,' Brent Gruber, executive director of the EV practice at J.D. Power, said in a statement. J.D. Power's findings shed light on consumer wants and needs, including the ways people shop for EVs and their biggest concerns with the vehicles. For instance, EV shoppers are likely to look at more vehicle brands — 'cross-shop' — than those shopping for ICE vehicles. The study reported that those likely to consider EVs look at an average 2.8 or 2.9 brands, while a previous J.D. Power study found that people shopping for gas-powered vehicles considered an average of 2.5 brands. 'As more EV options come to market, this should serve as an encouraging sign for automakers because it's an opportunity for them to gain a foothold and pull shoppers from outside their brands,' Gruber said, adding that the study revealed that EV shoppers also consider EVs from both mass market and luxury brands. Yet range anxiety remains a key concern, as 52% of vehicle shoppers cited charging station availability as a reason to forgo purchasing an EV. At the same time, another long-standing concern with EVs — their expense — fell in importance. The study found that 43% of shoppers said EV purchase price was a reason to avoid buying an EV, compared to 47% last year. In addition, 33% of shoppers stated they were concerned with EV cost of ownership, compared to 35% of shoppers in 2024. Much of the growth in EV sales can be attributed to more affordable, mass-market automakers such as General Motors. Still, the issue of EV affordability might box out the age group most interested in purchasing them — younger shoppers ages 25-49. 'It's an interesting dichotomy because younger consumers are the most receptive to EVs, but also the least likely to be able to afford them, while older consumers have the financial means but show less interest,' Gruber said. According to Gruber, the industry needs to focus on affordability and consumer education to continue to drive EV growth. Less expensive EVs would address what he described as the 'pent-up demand for more affordable products,' while improving consumer education could 'ease concerns' about EV ownership, as many, like public charging availability, 'are less problematic than they might seem when it comes to actually owning an EV,' he said. Recommended Reading New York expands EV purchase, charging equipment incentives
Yahoo
15-05-2025
- Automotive
- Yahoo
J.D. Power: Car buyers are still interested in EVs and Tesla alternatives
Despite the whirlwind of headlines about auto tariffs, EV mandates, and even the potential loss of EV tax credits, Americans are still very much interested in EVs. Including those not named Tesla. Consumer research group J.D. Power's latest EV consideration study found that 24% of car shoppers said they are "very likely" to consider purchasing an EV, and 35% said they are "somewhat likely," which is largely unchanged from a year ago. J.D. Power polled 8,164 consumers in January through April who intend to buy or lease a new vehicle in the next 12 months. "Despite the market volatility, EVs have found a solid ground for consumer consideration,' J.D. Power executive director of EV practice Brent Gruber said in a statement. Interestingly, with more options available, consumers are shopping across brands. Buyers are cross-shopping on average 2.9 brands when looking at EVs, versus two brands seen with gas-powered cars. And they are increasingly looking at EVs other than Tesla. J.D. Power found that the top five vehicle brands cross-shopped among purchasers interested in the Model Y SUV are Honda, Ford, BMW, Toyota, and Cadillac, in that order. "Manufacturers that didn't have electric vehicles before have now rounded out their portfolios with EV products, and so consumers are considering products from those other brands," Gruber said in an interview with Yahoo Finance. Honda's popular Prologue EV, Ford's Mustang Mach-E, and BMW products like the iX, i4, and i5 are gaining traction. Cadillac's Lyriq has been GM's top-selling EV for some time now. Read more: How your vehicle's make and model affect car insurance costs Gruber added that Tesla brand issues may be behind the cross-shopping. "There's certainly some consumer sentiment for and against some of the actions taken by Elon Musk in the political arena," Gruber said. "So we have seen some impact from that." But Gruber believes Tesla sales have been affected by the availability of new products coming to market, like the Prologue and Lyriq, rather than perceived brand issues. The broader EV market, however, faces a big headwind: the potential loss of the $7,500 federal EV tax credit. House Republicans are pushing a bill that would end the EV tax credit, a signature component of former President Biden's Inflation Reduction Act. Not surprisingly, Gruber believes this would create a major impact on EV sales. "You're potentially looking at a double whammy with tariffs and the elimination of the tax credit," Gruber said. "You're talking about what is conceivably a $12,000-plus swing on the price of an electric vehicle. So if those tax credits go away, you're going to see probably a slowdown in the level of interest for electric vehicles." Of course, it's not just a problem for consumers. It's also a major problem for automakers. Per current EPA rules, automakers need to sell EVs to meet federal emissions targets. If they do not, they're on the hook for billions in fines or must purchase carbon credits from companies like Tesla. "We believe the credits are critical for automakers to achieve current federal and state emissions standards," a spokesperson for the Alliance for Automotive Innovation, a trade group that represents several major automakers, said to Yahoo Finance. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Yahoo
15-05-2025
- Automotive
- Yahoo
J.D. Power: Car buyers are still interested in EVs and Tesla alternatives
Despite the whirlwind of headlines about auto tariffs, EV mandates, and even the potential loss of EV tax credits, Americans are still very much interested in EVs. Including those not named Tesla. Consumer research group J.D. Power's latest EV consideration study found that 24% of car shoppers said they are "very likely" to consider purchasing an EV, and 35% said they are "somewhat likely," which is largely unchanged from a year ago. J.D. Power polled 8,164 consumers in January through April who intend to buy or lease a new vehicle in the next 12 months. "Despite the market volatility, EVs have found a solid ground for consumer consideration,' J.D. Power executive director of EV practice Brent Gruber said in a statement. Interestingly, with more options available, consumers are shopping across brands. Buyers are cross-shopping on average 2.9 brands when looking at EVs, versus two brands seen with gas-powered cars. And they are increasingly looking at EVs other than Tesla. J.D. Power found that the top five vehicle brands cross-shopped among purchasers interested in the Model Y SUV are Honda, Ford, BMW, Toyota, and Cadillac, in that order. "Manufacturers that didn't have electric vehicles before have now rounded out their portfolios with EV products, and so consumers are considering products from those other brands," Gruber said in an interview with Yahoo Finance. Honda's popular Prologue EV, Ford's Mustang Mach-E, and BMW products like the iX, i4, and i5 are gaining traction. Cadillac's Lyriq has been GM's top-selling EV for some time now. Read more: How your vehicle's make and model affect car insurance costs Gruber added that Tesla brand issues may be behind the cross-shopping. "There's certainly some consumer sentiment for and against some of the actions taken by Elon Musk in the political arena," Gruber said. "So we have seen some impact from that." But Gruber believes Tesla sales have been affected by the availability of new products coming to market, like the Prologue and Lyriq, rather than perceived brand issues. The broader EV market, however, faces a big headwind: the potential loss of the $7,500 federal EV tax credit. House Republicans are pushing a bill that would end the EV tax credit, a signature component of former President Biden's Inflation Reduction Act. Not surprisingly, Gruber believes this would create a major impact on EV sales. "You're potentially looking at a double whammy with tariffs and the elimination of the tax credit," Gruber said. "You're talking about what is conceivably a $12,000-plus swing on the price of an electric vehicle. So if those tax credits go away, you're going to see probably a slowdown in the level of interest for electric vehicles." Of course, it's not just a problem for consumers. It's also a major problem for automakers. Per current EPA rules, automakers need to sell EVs to meet federal emissions targets. If they do not, they're on the hook for billions in fines or must purchase carbon credits from companies like Tesla. "We believe the credits are critical for automakers to achieve current federal and state emissions standards," a spokesperson for the Alliance for Automotive Innovation, a trade group that represents several major automakers, said to Yahoo Finance. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Automotive
- Yahoo
EV outlook: This 'double whammy' could hike EV prices by $12K+
Electric vehicle (EV) buyers could face sticker shock if the EV tax credit gets repealed. J.D. Power executive director of EV practice Brent Gruber joins Asking for a Trend to explain how the new tariffs and potential loss of incentives could hit EV prices and demand. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-04-2025
- Automotive
- Yahoo
Home charging remains an EV draw, but rising electricity prices frustrate customers
Home charging — a selling point for electric vehicles — is increasingly frustrating consumers because of rising electricity prices and slower-than-expected charging speed, according to J.D. Power. Charging at home continues to be important for EV owners, especially as federally funded public charging infrastructure becomes uncertain, according to the J.D. Power 2025 U.S. Electric Vehicle Experience Home Charging Study released March 25. More than 80 percent of regular charging happens at home, according to J.D. Power. Overall satisfaction with home charging is still high, but frustrations with charging equipment is increasing. Some EV owners are rejecting mounted Level 2 chargers, opting for slow-charging Level 1 systems that connect to a standard 120-volt electrical outlet, the firm said. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Level 2 charger usage is highest among owners of 2022 model-year vehicles, while usage of Level 1 chargers is increasing among owners of 2023 and newer model-year EVs. 'We see a pretty good percentage of people who have determined that a Level 1 charger just simply meets their needs. They may not be driving all that much and they don't need the extra power of the Level 2 charger,' Brent Gruber, executive director of the EV practice at J.D. Power, told Automotive News. Other EV owners are likely forgoing Level 2 chargers as many incentives from utilities and automakers expire. One utility had a program that allowed customers to spread the cost of charger installation over several payments, rather than paying at once, Gruber said. That program, along with many others, has ended, he said. A Level 2 charger costs $300 to $600 depending on the manufacturer and retailer, plus installation. Some discounts are still available, but consumers often don't know where to find them, Gruber said. Eaton has a rebate finder on its website to set expectations before they install a charger. If home charging doesn't meet consumers' cost, safety and reliability standards, 'they tend to have a bad experience, and then it just hurts the market,' said Dan Carnovale, director of Eaton Experience Centers. Overall, EV owner satisfaction with Level 2 permanently mounted chargers fell 11 points from a year earlier to 714 on a 1,000-point scale. Satisfaction with Level 1 chargers was flat at 581, J.D. Power said. Customers tend to prefer Level 2 chargers over Level 1 because they have more features, Gruber said. They connect to Wi-Fi, allow customers to manage their charging to optimize cost, and charge EVs much faster than Level 1 plugs. Charging speed 'increases satisfaction dramatically,' Gruber said. When home charging is slower than expected, satisfaction declines 141 points on average. J.D. Power compiled the home charging study in collaboration with PlugShare, an EV driver app maker and research firm. The study consisted of 10,472 EV and plug-in hybrid vehicle owners. It was fielded from November 2024 to January 2025 and measured satisfaction with the retail price of charging equipment, cord length, size of charger, ease of winding/storing cable, cost of charging, charging speed, ease of use and reliability. Cost savings is another major driver of satisfaction. EV owners typically save by charging at home rather than filling at a gas station, Gruber said. The average cost per-kilowatt-hour at a public EV charger was $0.342 on April 2, according to AAA. The average price of gasoline was $3.238 per gallon, AAA said. At about 4 miles per kWh, it costs roughly $8.55 for an EV to travel 100 miles. That compares with $12.95 for a car that averages 25 mpg. Home charging is usually a better deal for EV owners than public chargers, but the average cost to charge EVs at home has increased. EV owners said they spent $58 on electricity to power their EVs in March, up $2 from a year earlier. Frustration with charging cost 'may represent post-pandemic consumer weariness with pricing, along with the uncertainty of potential changes to federal EV support and energy regulation,' J.D. Power said in a statement. Electricity cost varies across the country. At more than $75 per month, charging an EV was the most expensive in New England and California, Gruber said. Home charging is one of the 'key reasons why people buy electric vehicles in the first place — that cost savings, the ability to take advantage of charging at home. That's part of the value proposition,' he said. When electricity prices rise, 'the value proposition decreases,' Gruber said. 'It's a critical part of the ownership experience.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
