Study: Dealers, Carmakers Must Step Up on EVs

Car makers and their dealers need to step up their efforts to explain electric vehicles to skeptical consumers, says a survey by Cox Automotive.

Cox notes that nearly 100 new electrified models will hit the U.S. market in the next few years. The study warns that demand for those models could languish unless manufacturers and dealers start now to build greater consumer confidence in EVs.

The poll of 2,500 consumers and 300 dealers finds even skeptical consumers intrigued by electrics. But they need more assurance about such ownership issues as cost, range and charging facilities before they commit.

Four in five respondents consider the initial cost of an EV to be at least somewhat more than a comparable piston-powered vehicle. That is true, but Cox notes that the gap is narrowing because of falling battery costs and rising prices for internal combustion cars.

Half of dealers polled say their profit is less for EVs than conventional vehicles. They also say carmakers aren’t providing enough good marketing support and sales training. Cox says dealers who do receive high-quality training sell nine times as many electrics as those who don’t.

Nearly all consumers surveyed correctly believe that EVs are much cheaper to fuel and repair. The study cites Kelley Blue Book data which shows that the five-year cost of EV ownership averages 60% lower for fuel and 25% cheaper for service.

But two-thirds of respondents want more charging stations near their homes and workplaces. Consumers who would consider buying an EV expect a range of least 240 miles, with 300 miles preferred.

Carmakers have plenty of work to do to gain awareness of their electrified models, the study says. Four in five respondents are aware of EV market leader Tesla Inc. But far fewer consumers know about electrics from Toyota (52%), Chevrolet (47%), Nissan (42%) and Honda (39%).

Cox notes that EV customers remain wary about the lifespan of an electric vehicle’s battery—and the high cost of replacing it. The study notes that all EVs sold in the U.S. must carry a battery warranty of at least eight years or 100,000 miles. Even so, half of EV buyers opt for an extended warranty on their car’s battery.