Price the biggest barrier to EV uptake

BY PETER BARNWELL | 5th Oct 2022

CHEAP and cheerful does not apply to the new EV market… by long shot. You have to pay big to be green – it’s as simple as that – and many would-be buyers are not interested in moving to an electric vehicle as a result.

Research outfit, Juniper Research, just verified this fact in a survey conducted in the UK and the US which many say can also be extrapolated Down Under.

According to their research, it is unequivocal that the high price of EVs deters over 60 per cent of UK and US potential buyers. The survey, conducted in July 2022, canvassed 1000 potential EV buyers in each country for the data.

The survey has found that 66 per cent of UK respondents and 61 per cent of US respondents are discouraged from adopting electric vehicles due to their high purchase price. It noted that electric vehicles must demonstrate to potential buyers lower running costs compared to traditional vehicles to justify the initial expenditure.

The survey found that only five per cent of UK and US respondents currently own and use an electric vehicle, with Tesla proving the most popular.

It further noted that consumer education is needed to boost market adoption, with the integration of electric fleet vehicles within MaaS (Mobility-as-a-Service) solutions key to improving user familiarity.

Juniper Research’s recent MaaS research found that mobility schemes which determine the best route and price across end-to-end transport services will save consumers $10.5 billion in fuel costs by 2027; boosted by the use of electric vehicles.

Accordingly, it advises MaaS vendors must incorporate electric vehicles to maximise environmental benefits and subsequently, adoption.

The research also found that 48 per cent of UK respondents and 47 per cent of US respondents would be encouraged to use an electric vehicle if the lifespan of vehicle batteries was increased.

Research author Scarlett Woodford remarked: “Vehicle manufacturers must invest in battery technology; focusing on performance improvement and range extension, while decreasing cost. This will facilitate lower production costs, enabling electric vehicles to offer a more competitive value proposition versus internal combustion engine vehicles.”

On the upside, however, and due to several factors including economies of mass production, advancing technology and improving design and engineering, EVs are slowly but surely rising in popularity with a corresponding (small) drop in prices. The advent of Chinese EV brands is driving much of this change.

As more EVs appear on our roads it is expected more people with begin to appreciate their strengths including near silent and smooth running, strong performance and zero tailpipe emissions. Plenty of pure EV (known as Battery Electric Vehicles or BEVs) choices are available in Australia, a figure that redoubles if you include hybrids and plug in hybrids.

BEVs are sold locally by Audi, BMW, Hyundai, Jaguar, Kia, MG, Mini, Polestar and Tesla, with more due in the market over the next 12 months – including the cheaper, Chinese-made BYD Atto 3.

BEV models and pricing* available as of September 2022: