The latest research in the car tech industry reveals that despite the growing capabilities of electric vehicles (EVs), internal combustion engines (ICEs) are still the preferred choice among consumers. A recent study conducted by KPMG showed that 38 percent of respondents favored traditional gas-powered cars, while hybrids came in a close second at 34 percent, and EVs lagged behind with only 21 percent of the vote. This finding highlights the enduring popularity of fossil fuels, even when cost and features between different powertrain options are equal.
The survey, although based on a relatively small sample size of 1,100 people, is representative of the broader market trends. It dispels the perception that EV sales have been tumbling in the first quarter, revealing that it was primarily due to fluctuations in Tesla sales rather than a general decline in the demand for EVs. In fact, most other car brands are performing well. However, it raises an important question: are consumers choosing EVs because they genuinely want them or simply because they have limited options?
In recent years, many automakers have announced plans to go all-electric or have fully electrified lineups by a certain year. However, some brands like GM and Ford have started backtracking on these commitments and reintroducing hybrids into their product portfolios. At the same time, companies like Toyota, Mazda, and Subaru are developing new internal combustion engines, showcasing their continued reliance on fossil fuels.
The KPMG study also revealed a disconnect between consumer preferences and what automakers are offering. While EVs and hybrids are more popular on the West Coast, consumers in the Midwest and Northeast still prefer standard gas-only cars. This regional variation suggests that there is a lack of alignment between market demand and product offerings.
Furthermore, the study shed light on consumers’ expectations regarding charging infrastructure. Sixty percent of respondents expressed a desire to wait no more than 20 minutes for an 80 percent charge. This contrasts with the perspectives of industry executives, with only 41 percent sharing the same expectation. This discrepancy highlights the need for improved charging infrastructure and faster charging times to meet consumer demands.
Angie Gildea, the U.S. Energy Sector Leader at KPMG, emphasized the importance of education to bridge the gap between consumer preferences and the energy transition. She noted that consumers feel comfortable with what they know, which currently includes renewables and fossil fuels. To encourage EV adoption, it is crucial to provide consumers with more information and bring down the costs associated with EV ownership. Without federal tax breaks and local incentives, EVs may remain financially out of reach for many potential buyers.
Overall, the KPMG study paints a complex picture of consumer preferences in the car tech industry. Although ICEs remain popular, there is growing interest in hybrid and electric powertrains. To fully capitalize on this demand, automakers need to align their product offerings with consumer preferences, improve charging infrastructure, and continue educating consumers about the benefits of electric vehicles. By doing so, they can accelerate the transition towards a more sustainable future while meeting the needs and desires of car buyers.