Recent data reveals a significant decline in American interest towards electric vehicles, with only 16% of drivers now considering an EV purchase for their next vehicle – marking the lowest level since 2019, according to AAA’s latest annual survey.
The sharp downturn in EV enthusiasm comes despite manufacturers’ continued push toward electrification and an expanding selection of models. Several key factors are driving this reduced interest, including persistent concerns about high purchase prices, battery maintenance costs, and charging infrastructure limitations.
The survey found that 63% of consumers now express being “unlikely” or “very unlikely” to choose an EV, up considerably from 51% in the previous year. This represents a dramatic shift from 2022, when gas prices hovering around $5 per gallon had pushed EV consideration rates to 25%.
AAA’s director of automotive engineering, Greg Brannon, noted that despite the automotive industry’s commitment to electrification and broader model availability, fundamental consumer hesitation remains entrenched. The survey identified several primary concerns, with 62% of respondents citing high battery repair costs and 59% pointing to elevated purchase prices as major deterrents.
Additional barriers include perceived limitations for long-distance travel (57%), insufficient public charging infrastructure (56%), and range anxiety (55%). Safety considerations (31%), home charging installation challenges (27%), and uncertainty about future tax incentives (12%) were also noted as significant concerns.
The current economic environment has played a crucial role in shifting consumer sentiment. With gas prices reaching their lowest pre-Memorial Day levels in four years, the financial incentive to switch to electric has diminished. While 77% of potential EV buyers still cite fuel cost savings as their primary motivation, overall interest in tax credits and rebates has plummeted from 60% to 39% year-over-year.
Consumer confidence in the electric future has also waned
significantly. The percentage of Americans who believe most vehicles will be electric within the next decade has dropped from 40% in 2022 to just 23% in 2025. This decline comes despite manufacturers introducing more than 75 new EV models over the past four years.
The survey suggests that hybrid and plug-in hybrid vehicles may be gaining favor as more practical alternatives to fully electric vehicles. These options offer a compromise between traditional internal combustion engines and electric power, addressing range anxiety while still providing environmental benefits.
The evolving landscape of EV incentives has emerged as a new factor influencing consumer decisions. Uncertainty surrounding the future of tax credits and rebates has contributed to potential buyers’ hesitation, adding another layer of complexity to the purchase decision.
This shift in consumer sentiment comes at a critical time for the automotive industry, which has invested heavily in electric vehicle development and production. Despite the availability of more diverse EV options and improved technology, the combination of economic factors, persistent concerns about practicality, and uncertainty about incentives has created significant headwinds for EV adoption in the United States.
The findings suggest that while the automotive industry continues to push toward an electric future, consumer acceptance may take longer than initially anticipated, with hybrid vehicles potentially serving as a transitional technology for many Americans still hesitant about fully electric options.