European Consumer Perceptions of Electric Vehicles
The electric vehicle (EV) market in Europe is experiencing significant growth, with EVs now accounting for 16% of new car sales, up from less than 1% in 2019. Despite the removal of purchase subsidies in certain markets like Germany at the end of 2023, sales have remained stable, with over 875,000 new full battery electric vehicles (BEVs) sold across the continent since the beginning of 2024.
Consumer Interest and Concerns
A recent McKinsey survey of 15,034 individuals in France, Germany, Italy, and Norway revealed that 38% of car buyers who have not yet purchased an EV intend to do so next. The main concerns preventing skeptics from considering EVs include high purchase prices, inability to charge at home, and concerns about real battery driving range. Prospective buyers who do not yet own a BEV are concerned about high purchase prices (37%), insufficient battery driving range (36%), and battery lifetime (35%).
The survey suggests that a longer driving range could accelerate BEV adoption in Europe, with consumers expecting a real battery driving range of about 500 kilometers. Current BEV owners have slightly lower expectations at about 470 kilometers. However, only 42% of existing BEV owners are satisfied with their car’s real driving range.
Charging Infrastructure and Vehicle Features
Consumers have concerns beyond public charging availability, with over 75% of prospective BEV buyers expecting public charging times of under 30 minutes to charge from 20% to 80% battery capacity. The survey also found that EV buyers place higher importance on advanced-driver-assistance systems (ADAS) and comprehensive in-car connectivity offerings.
The Used EV Market
The used-car market is crucial for sustained EV adoption. While EVs accounted for over 15% of new-car sales in Europe in 2023, they represented less than 2% of used-car sales. The survey found that 31% of prospective EV buyers are likely to consider a used EV for their next purchase, citing concerns about battery degradation, high prices, and unclear maintenance and repair availability.
New Market Entrants
The European EV market is seeing new entrants, particularly from China, with over 35 new OEMs starting to sell BEVs in the past three years. Prospective buyers are increasingly considering non-European brands, with 27% considering Chinese brands. However, European consumers are skeptical about product quality and data readily accept Chinese brands. New entrants are offering innovative features and cutting-edge technologies, which could raise expectations for the in-vehicle experience across all cars.
Conclusion
The EV transition in Europe is underway, with consumer expectations evolving rapidly. Manufacturers must address concerns around public charging infrastructure, real battery range, and purchase price to accelerate EV adoption. The used EV market also presents opportunities for growth, with OEMs able to alleviate consumer concerns through guarantees and improved services.
