McKinsey & Company: How European Consumers Perceive Electric Vehicles

Aug 28

Overview:

A recent McKinsey and Company report highlights how electric vehicles (EVs) are gaining traction in Europe, with 16% of new-car sales being EVs. Despite challenges like high costs and charging infrastructure, consumer interest continues to grow.

Source: McKinsey Mobility Consumer Pulse Surveys

Electrification Momentum

Rising Sales: EVs now account for 16% of new-car sales in Europe, a significant jump from under 1% in 2019
Stable Market: Even with the removal of purchase subsidies in markets like Germany, sales have remained stable
Diverse Buyers: The EV customer base is expanding from early adopters to more mainstream consumers

Consumer Insights

Survey Data: McKinsey’s survey of 15,034 individuals in France, Germany, Italy, and Norway reveals key trends
- Future Intentions: 38% of non-EV owners plan to buy an EV next, with nearly half opting for full battery electric vehicles (BEVs). This indicates a strong future market potential for EVs, as more consumers are considering making the switch.
- Demographic Shifts: Younger, urban, and environmentally conscious consumers are leading the charge, but interest is spreading to older, budget-conscious buyers. This shift suggests that EVs are becoming more appealing across different age groups and income levels.
- Environmental Concerns: Many consumers are motivated by environmental benefits, with a significant portion of younger buyer prioritizing sustainability.
- Urban vs. Rural: Urban consumers show higher interest in EVs due to better aHowever, rural consumers are gradually catching up as charging networks expand.

Major Concerns

Battery Range: Real-world bettery range versus advertised range remains a top concern
Costs: High purchase prices deter some potential buyers
Charging Infrastructure: The ability to charge at home is a significant factor for many

Market Trends

Used-EV Market: The market for used EVs is growing, offering more affordable options for consumers
Innovative Profiles: Automakers are developing nuanced profiles of EV buyers to better meet their evolving expectations

The EV market is on a steady rise, driven by diverse consumer interest and evolving market dynamics. Addressing concerns like battery range, costs, and charging infrastructure will be key to sustaining this momentum.

Read the full report here: https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/how-european-consumers-perceive-electric-vehicles?cid=other-soc----oth----ip&sid=soc-POST_ID&linkId=566360300