Study: Consumer Interest in EVs and Self-Driving Cars Lags Industry Plans

Automakers are “pushing forward with technology that consumers seem to have little interest in. Nor are they making the strides needed to change people’s minds.”

That’s the conclusion of J.D. Power’s latest quarterly Mobility Confidence Index. The survey polled more than 8,000 consumers and industry experts in the U.S. and Canada about electric and self-driving vehicles.

COVID-19 Impact to Worsen Outlook

Even more troubling: The survey was conducted in early March, before most stay-at-home and business restrictions related to the coronavirus pandemic went into effect.

“Frankly, we’re concerned for automakers,” says Kristin Kolodge, executive director of driver interaction & human machine interface research at J.D. Power. “Especially now, automakers need to reevaluate where they’re spending money. They are investing billions in these technologies but they need to also invest in educating consumers. Lack of knowledge is a huge roadblock for future adoption.”

Confidence in Autonomous Vehicles Declines

Consumer confidence for self-driving vehicles decreased for the first time in the data marketing company’s quarterly index. On the 100-point scale, confidence in the U.S. dipped to 35 from an already low 36 in the fourth quarter of 2019. Among Canadian respondents, confidence levels fell from 39 to 36.

Technology failure or error remains the top concern in both countries. Three in four Canadians and two-thirds of Americans expressed such concerns.

Respondents also worried that reliance on autonomous vehicle systems would diminish human driving skills during the transition to such technologies.

Canada’s climate and mountainous terrain are viewed as limiting factors for autonomous vehicle systems. One respondent succinctly states: “Not practical in Canada where there are snow and messy roads.”

EVs Hold Steady

Consumer confidence in EVs is better but still concerning.

In the U.S., the index remained at 55 for the fourth straight quarter. In Canada, confidence fell last quarter to 57 from 59 at the end of 2019.

Part of the problem is a lack of real-world experience. About two-thirds of respondents indicated they had never driven or even rode in an EV.

Even more problematic: Some 30% of Americans said they knew nothing about EVs. Canadians were slightly more knowledgeable, with only 19% claiming not to know anything about them.

On the plus side, three in 10 consumers in both markets expressed some interest in buying an EV in the next four years. That’s about the same proportion as those who had no intention of doing so.

Some current and previous EV owners said they wouldn’t make the plunge again, citing high maintenance costs, purchase price, limited range and reduced performance in extreme weather. Among all respondents, the top concerns are:

• Charging station availability
• Driving range
• Purchase price

What’s Next?

Societal changes resulting from the pandemic likely will have a significant impact on upcoming mobility studies, J.D. Power notes.

SurveyMonkey, which conducts the survey, adds: “We know big changes are ahead, as physical distancing will shake virtually every major industry, including automotive and how we get around.”

Among the industry experts responding to the March survey, one opined that the “outbreak may steer some people away from shared transportation toward more private vehicle ownership, and some of these private vehicles may evolve from sophisticated ADAS to higher levels of automation.”

The trend toward social distancing could benefit autonomous vehicle delivery services, which are forecast to ramp up over the next four years. But industry experts responding to the survey pushed the timeframe for the introduction of self-driving vehicles for consumer purchase out to 2038—five years later than they predicted in the previous quarterly index.