Summary
– Lower-income buyers need policies to afford used EVs to drive adoption
– EVs offer advancements like solid-state batteries and hydrogen fuel cells
– EV adoption faces challenges such as lagging infrastructure and high repair costs
– Used EV market is growing, but concerns about price and charging availability remain
– Study finds lower-income households are more concerned about price and charging availability when considering used EVs
Article
A Rutgers study has revealed that new policies are needed to enable lower-income buyers to afford used electric vehicles (EVs) to drive the adoption of EVs. Despite advancements in EV technology such as solid-state batteries and hydrogen fuel cells, EV adoption has been hindered by issues such as lagging infrastructure, expensive repairs, and poor resale values. As a result, EV manufacturers like Fisker are struggling to stay afloat. However, EVs have emerged as a primary solution for reducing greenhouse gas emissions, leading the US to announce subsidies through tax credits for the purchase of new EVs. This has also led to a growing market for used EVs, which accounted for 71% of all sales and leases in 2019.
A study conducted at Rutgers University aimed to understand the motivation and concerns of buyers from different demographic, income, and socio-economic groups in purchasing second-hand EVs. The study found that lower-income buyers were discouraged by the price and conveniences of EVs. The survey of 1,167 electric vehicle owners in the US revealed that household income, price, charging availability, and battery performance were the primary concerns for buyers when considering purchasing a used EV. Lower-income buyers were more concerned about pricing and charging availability, suggesting financial limitations in purchasing and owning an EV.
The survey showed that over 95% of respondents had public chargers near their residences, influencing their decision to purchase an EV. However, the price of used EVs may still be prohibitive for lower-income households, making price a critical factor in their decision to adopt an EV. The study suggested that expanding subsidies for used EV purchases and increasing charging infrastructure availability could help advance used EV adoption across income groups. The study highlighted the need for broader uptake of new and used EVs from all income levels to encourage nationwide EV adoption.
Looking at leading EV manufacturers, Tesla Inc. reported a drop in revenue in the first quarter of 2024 and layoffs of over 10% of its global workforce. Elon Musk emphasized the need to reorganize Tesla and focus on leveraging existing manufacturing factories to introduce more affordable products. BYD Company Limited, based in China, unveiled new electric vehicles at the 2024 Beijing auto show, including the Denza Z9GT sedan and Ocean-M hatchback. BYD’s innovative Blade battery and C2B technology aim to reduce costs and increase crash safety. BYD aims to go global and expand its manufacturing operations in regions such as Southeast Asia, South America, the Middle East, and Europe.
Overall, the EV industry is facing challenges, but the adoption of electric vehicles is growing steadily. The global EV market size is expected to reach nearly $952 billion by the end of the decade. As EV adoption grows, the market for used EVs will also expand, requiring governments to implement measures such as policy changes and improved infrastructure to promote EV adoption across all income levels. This will ensure that the full environmental benefits of EVs are realized, contributing to the reduction of greenhouse gas emissions and sustainable transportation solutions.
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