In a recent video by automotive commentator Kirk Kreifels, he discusses a surprising trend among electric vehicle (EV) owners in the United States. According to a new study by McKinsey, more than 40% of U.S. EV owners are considering switching back to internal combustion engine (ICE) vehicles for their next purchase. Kreifels explores the reasons behind this shift and provides an in-depth analysis of the current EV market.
Declining EV Value
One of the primary reasons for the shift back to gas cars is the plunging value of used EVs. Kreifels points out that the market for used EVs is experiencing a significant decline, with values dropping faster than those of gas-powered vehicles. This depreciation makes it less attractive for owners to keep their EVs, prompting many to consider ICE vehicles for better resale value.
Impact of Tariffs
Kreifels also highlights the impact of recent tariffs on imported Chinese EVs. The U.S. government imposed a 100% tariff on these vehicles, and the European Union is expected to follow suit with substantial tariffs of their own. These tariffs make Chinese EVs more expensive, contributing to the declining demand and further complicating the market dynamics.
Charging Infrastructure Issues
A major factor driving EV owners back to gas cars is the inadequate charging infrastructure in the United States. Kreifels notes that the lack of a reliable and extensive charging network makes it inconvenient for EV owners to travel long distances. This issue is particularly pronounced in colder climates, where charging efficiency can be significantly reduced.
Maintenance and Convenience
While EVs offer lower maintenance costs compared to ICE vehicles, the inconvenience of charging can outweigh these benefits. Kreifels explains that the ease of refueling a gas car compared to finding a charging station can be a decisive factor for many owners. The practicality of being able to quickly refuel at any gas station versus potentially lengthy charging times is a significant consideration.
Global Trends
The trend of reverting to ICE vehicles is not confined to the United States. Kreifels cites data indicating that 29% of EV owners globally are also considering a switch back to gas-powered cars. However, this trend is more pronounced in the U.S., where gas prices are relatively lower, and the charging infrastructure is less developed compared to other countries.
Government Efforts and Challenges
Kreifels discusses the efforts by the U.S. government to improve the EV charging network, including the National Electric Vehicle Infrastructure (NEVI) program. Despite the allocation of billions of dollars, progress has been slow, with only a fraction of the planned charging stations operational. This slow rollout has frustrated many EV owners and highlighted the challenges of government-led initiatives in this area.
Public Charging Costs
The cost of public charging is another concern for EV owners. Kreifels points out that while home charging can be economical, public charging can be significantly more expensive. This discrepancy can make the overall cost of owning an EV comparable to or even higher than that of a fuel-efficient hybrid or gas car, especially for those who rely heavily on public charging stations.
Reluctance to Adopt EVs
In addition to current EV owners reconsidering their choices, there is also a significant portion of the population that remains hesitant to adopt EVs. According to the study, 21% of respondents have no intention of switching to an EV, with only a third citing charging concerns as the primary reason. This suggests that other factors, such as technology preferences, safety concerns, or political reasons, also play a role in their reluctance.
Economic Considerations
The economic aspect of owning an EV is crucial. Kreifels advises against purchasing new EVs due to their rapid depreciation and instead suggests leasing as a more financially prudent option. With the used EV market becoming more affordable, those interested in EVs might find better deals in the pre-owned segment, though they should still be cautious of potential depreciation.
“Hybrid Cars Make the Most Sense”
People in the comments had a lot to say about this: “And they said, Akio Toyoda was stupid to say electric cars are not the future, and hybrids are. He finally had the last laugh <3”
Another person added: “Hybrid cars make the most sense right now. No range anxiety, greater range than any EV, more reliable, etc.”
“Lack of an infrastructure in the Midwest and Northeast is the primary barrier for me.” said one commenter.
Practical Challenges
In conclusion, the trend of EV owners switching back to gas cars is influenced by various factors, including declining vehicle value, inadequate charging infrastructure, and economic considerations. While EVs offer environmental benefits and lower maintenance costs, the practical challenges and higher upfront costs are significant deterrents. As the market evolves and infrastructure improves, it will be interesting to see how these trends develop and whether more consumers will embrace or retreat from electric vehicles.
Improving the Charging Infrastructure
What do you think? What steps can be taken to improve the charging infrastructure in the U.S. to make EV ownership more practical? How might the imposition of tariffs on imported Chinese EVs impact the global EV market and consumer choices? What are the long-term implications of the rapid depreciation of used EVs for the overall sustainability of the EV market?
Watch the entire video on Kirk Kreifel’s YouTube channel for more information here.