Deloitte Study: Consumers Leaning Away from Electric Cars
London, March 20, 2025 – A new study by Deloitte indicates a decline in consumer interest in electric vehicles (EVs) across several key global markets. The 2025 Global Automotive Consumer Study suggests a growing preference for internal combustion engines (ICE) in countries like Germany, Japan, India, and China.
Interest in gasoline engines has risen in Germany (53% in 2025, up from 49% in 2024), Japan (41%, up from 34%), India (54%, up from 49%), and China (38%, up from 33%). While the USA still favors gasoline engines, the study noted a high share of ICE vehicle purchases at 62%, a decrease from 67% in 2024.
“The declining interest in electric vehicles represents an additional challenge for automotive players,” said Bogdan Barbu, Tax Partner, and Automotive Industry Leader, Deloitte Romania. “Especially for those in the European Union, that, on top of the growing global competition, are facing regulatory pressure to reduce CO2 emissions.”
Price and Quality Remain Key Factors
Regardless of engine type, price and product quality remain the most critical factors for consumers when choosing their next car brand. This trend is consistent in Germany (62%), the United Kingdom (62%), the USA (58%), and South-East Asia (65%). Vehicle performance is the top priority for consumers in South Korea (59%).
Factors Influencing EV Purchases
For those still considering an EV purchase, environmental concerns are the primary motivator in India (63%) and Germany (54%). Lower fuel costs are a significant factor in South-East Asia (64%), Japan (61%), and the United Kingdom (59%). Government incentive programs play a role, but are only a top-three consideration for German consumers (33%).
Industry Challenges and Market Dynamics
The European Automotive Manufacturers Association has also noted a decrease in EU sales of 5.9% for electric vehicles in 2024 compared to the previous year. This has prompted calls for flexibility in the transition to green vehicles and climate requirements that match market conditions. Some European states, including Romania, have reduced or eliminated subsidies for EV purchases.
The Deloitte study pointed towards a dynamic market with an increasing number of consumers planning to switch car brands with their next purchase. Those numbers rose to 76% in China (up from 73% in 2024), 71% in South-East Asia, 51% in the United Kingdom, and 46% in Germany.
Brand Loyalty and Consumer Concerns
Brand loyalty to domestic brands is weakening, except in Japan, where 76% of the consumers favors local manufacturers. Consumers in the United Kingdom (68%), China (52%), Germany (50%), and the USA (47%) indicated that the country of origin is less important than meeting their needs in a vehicle.
When considering battery-electric cars, consumers are concerned about a range of factors. These include range (Germany – 54%, the United Kingdom – 52%), price (Germany – 45%, the United Kingdom – 49%), charging time (Japan – 49%, the United Kingdom – 47%), the public charging infrastructure (Germany – 43%), and battery safety (South Korea – 49%).
Another strong concern highlighted by the study is the matter of batteries recycling. While consumers in Japan and South Korea believe car manufacturers should manage batteries throughout their lifecycle (35% and 31% respectively), Germans favor battery manufacturers taking charge (21%). Consumers in China (26%), South-East Asia (25%), and the United Kingdom (19%) want a dedicated entity to handle recycling.
Study Methodology
The Deloitte 2025 Global Automotive Consumer study surveyed approximately 31,000 consumers across 30 countries, including 13 European nations. The findings offer insights into the evolving automotive market and consumer preferences globally.
