NADA DIRECTOR’S MESSAGE Plug-In Vehicles Have a Role to Play in a 100% EV Future RICK DeSILVA, JR. Consumer interest in EVs is real, strong, and growing. According to Escalent research, the proportion of “EV intenders” — new-car buyers that have a high propensity to shop for an EV — has climbed from 16% in 2020 to 25% in 2023, but the increasing interest in EVs is not translating into more purchases. (NOTE: In New Jersey, the current mandate calls for 22.5% of all vehicles sold to be EVs. Total EV sales in 2023 will likely come in right around 10% when all is said and done.) So, if interest in EVs is up, but sales are plateauing and inventories are rising, what’s going on? The answer is most likely an age-old problem with bringing new technology into the market. In the book Crossing the Chasm, author Geoffrey Moore describes the difficulty of transferring new technology from early adopters into the mass market. This problem is so universal and so difficult that Moore says there is effectively a “chasm” in the market between early adopters and the mass market that is nearly impossible for tech companies to cross. While early adopters “find it easy to imagine, understand and appreciate the benefits of new technology,” early majority customers “share some of the early adopters’ ability to relate to technology, but ultimately … are driven by a strong sense of practicality.” WHAT’S STOPPING CONSUMERS? EVs’ enhanced driving performance and record on the environment excite many early adopters. Early majority consumers are excited, too — but the reallife drawbacks of range anxiety, slow charging, and undeveloped charging infrastructure are keeping many from buying them. In a survey by NADA, dealers report that 69% of consumers who decline to purchase an EV cite driving range as their chief concern. According to J.D. Power, four of the top five reasons for EV rejection relate to charging, with 76% of consumers citing at least one charging-related concern. The state of America’s charging infrastructure bears this out. While there were about 54,000 charging NADA CEO Mike Stanton authored an article in mid-November that spelled out why many dealers feel that plug-in hybrids can serve as a crucial (and necessary) bridge to the 100% electric vehicle future that seems unrealistic given the current economic realities and the relatively short time frame that State and Federal officials are pushing to phase out gas-powered vehicles. Below is a modified version of Mike’s published piece, titled “Crossing the chasm on EVs may require plug-in hybrids.” 12 new jersey auto retailer
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