What’s driving plug-in vehicle abandonment?

A new study has revealed a concerning trend in the United State, as a significant number of plug-in-electric vehicle (PEV) owners are switching their electric cars for gasoline-powered vehicles. The shift is raising questions about the future of the auto sector’s energy transition.

Researchers from KAPSARC, Washington State University, National University of Singapore, and Strategic Vision in San Diego conducted comprehensive surveys of new car buyers in the United States to examine the reasons behind this pattern. Their findings suggest that about 35% of US households that disposed of a PEV opted to replace their vehicle with a gasoline-powered car at the time of their next purchase. 

The findings are in line with other recent studies. A McKinsey survey showed that about 45% of EV owners in the United States were likely to switch back to gasoline-powered cars. Another study by Edmunds found that around half of Teslas are being traded in for gasoline vehicles.

“The main factors influencing this shift include concerns over electric driving range, the availability and convenience of charging infrastructure, particularly home charging, high PEV purchase price and battery replacement costs, and lower resale values of PEVs,” says Rubal Dua, a research fellow at KAPSARC and the first author of the study. 

In a bid to meet their climate goals, improve air quality and build cleaner transport ecosystems, countries worldwide have announced ambitious targets for PEV uptake. Norway wants PEVs to make up 100% of car sales by 2025, and the United Kingdom, and the European Union are pushing to achieve that by 2035. 

“For countries aiming at increased PEV market penetration, it is essential to ensure that once consumers switch to PEVs, they continue to use them,” says Dua. “Early adopters of PEVs often influence the adoption behavior of potential buyers; addressing their concerns can foster a more robust adoption rate globally.” 

The study also found that lower-income groups were more likely to give up their PEVs. That suggests that as electric cars reach a broader demographic, the abandonment trend could increase.

To encourage the adoption of PEVs, the study suggests that smart policies are also likely to be successful. In China, for example, government subsidies have been tied to driving range, addressing the concern of many drivers who typically want a minimum range of 330 miles. 

Additionally, the study finds, linking subsidies to extended battery warranties and resale value guarantees can alleviate other common buyers’ concerns.

 To help lower-income buyers, the research suggests that subsidies be capped at a certain income level, and be applied to lower-priced PEVs. That would encourage automakers to manufacture more affordable electric vehicles. 

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