Fuel Prices Will Be Major Factor For U.S. Electric Vehicle Consideration Says Deloitte Study

A new survey released by auditing and consulting firm Deloitte LLP shows that 78 percent of consumers in the United States would consider purchasing an electric vehicle (EV) when fuel prices reach $5.00 per gallon.

The study polled 12,000 consumers globally, including more than 1,000 in the U.S., and found that the higher the price of fuel, the more interested consumers are were EVs.

The Deloitte survey determined that the ever-present concerns over fuel prices is a major determinant for customers willing to give EVs a go. The better the fuel efficiency of internal combustion engine (ICE) vehicles, the less interested consumers become in electric vehicles. A total of 68 percent of consumers in the U.S. and 57 percent in China are less likely to consider an EV if they are able to find ICEs with a fuel efficiency of 50 miles per gallon.

According to the survey, the majority of consumers' in the world's four largest automotive markets either identify themselves as potential new technology adopters, or at least willing to consider purchasing an electric vehicle (U.S. 54 percent, China 93 percent, Europe 69 percent, and Japan 48 percent).

China is in the forefront with 50 percent of consumers falling into the potential first adopters' category, with Europe following at 16 percent. 12 percent of U.S. consumers surveyed identify themselves as potential first adopters in purchasing or leasing an electric vehicle. Japan has the smallest percentage in this category with only four percent.

More than half of U.S. consumers surveyed are not willing to pay any price premium for an EV compared to a regular car (ICE) while only 8 percent are willing to pay a price premium of more than $3,000. 77 percent expect to pay less than $30,000 net of government incentives, making government-backed programs for EVs a vital part of any rollout plan. The majority of consumers in Europe and China expect to pay less than $20,000 for an electric vehicle and more than 50 percent of consumers in these markets refuse to pay any kind of price premium for an electric vehicle, rendering them as much more difficult markets to crack..

Deloitte LLP concluded that global mass adoption of electric vehicles will be significantly influenced by rising fuel prices, advancements in ICEs, and the availability of government incentives.

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