The latest AudienceSCAN survey by Edmunds, reported by Courtney Huckabay, finds that 4% of car shoppers are considering hybrid/electric vehicles, but Edmunds analysis says tax credit cuts put mainstream electric vehicle market in jeopardy. The research finds financial incentives don’t encourage mass adoption of EV technology, but are vital to sustaining sales! Without generous tax incentives, it will be challenging for either company to meet sales goals for these vehicles, concludes the report.
Jessica Caldwell, executive director of industry analysis for Edmunds, says,“…as companies such as Tesla and General Motors launch new electric vehicles designed to attract the masses, but… with gas prices at a relative low and the popularity of SUVs and trucks hitting all-time highs, the EV market is at a crossroads… while the high-end EV market… has the ability to hold steady… analysis (of the study) shows that the average car shopper still needs a significant financial incentive to choose an electric vehicle over a traditional counterpart…”
Dealers can advertise the many benefits of EVs to remind consumers to consider this option when shopping for cars. The latest AudienceSCAN survey found 71% of Hybrid/Electric Car Shoppers took action after seeing ads in the newspaper (print, online, mobile or tablet) in the past month.
To get a deep understanding of how financial incentives for EVs affect the market, the Edmunds experts conducted an extensive analysis of what happened in Georgia following the expiration of their EV tax credit, as a model for what could happen should policy shift at the federal level. The analysis learned that:
Local dealerships can emphasize tax credits and other money-saving benefits of driving EVs with TV spots focusing on this market segment. The most recent AudienceSCAN study revealed 51% of Hybrid/Electric Car Shoppers took action after watching TV spots in the past month.
While sales of PHEVs and EVs have grown over the last five years, 136,295 in 2016 compared to 17,425 in 2011, they still only constituted 1% of the market at the end of the first quarter of this year.
For additional information about the study, please visit here.