Summary
- J.D. Power’s E-Vision Intelligence Report shows that many Tesla customers cite federal incentives as a key reason for purchasing an EV
- 64% of premium brand EV owners say incentives were a primary factor in their decision to buy or lease a premium electric vehicle
- Brands like Volkswagen, Chevrolet, and Tesla have high percentages of customers who chose their EV due to incentives
- In contrast, brands like Hyundai, Kia, and Toyota had much lower percentages of customers influenced by incentives
- On average, consumers saved $5,124 on purchasing or leasing an electric vehicle in 2024 thanks to federal EV tax incentives, higher than in previous years
Article
According to a recent study conducted by J.D. Power, a significant number of customers who purchase electric vehicles (EVs) cite federal incentives as a key factor behind their decision. Tax credits are particularly influential among buyers of premium electric vehicles, with 64% of premium brand EV owners stating that incentives played a primary role in their decision to purchase or lease a premium EV. For mass-market electric cars, the influence of incentives was slightly lower but still significant, with 49% of buyers mentioning it as a factor.
Among the customers of Volkswagen, Chevrolet, and Tesla electric vehicles, a large majority cited incentives as drivers for their EV purchases. For example, 81% of Volkswagen EV buyers chose their vehicle in part due to the Clean Vehicle Credit, while 77% of Chevrolet buyers and 72% of Tesla customers also mentioned incentives as a factor. Tesla, in particular, ranks highest among premium segment brands in terms of the influence of tax credits on purchase decisions, according to J.D. Power.
In comparison, brands like Hyundai, Kia, and Toyota had lower percentages of customers mentioning incentives as a motivating factor for their EV purchases, with only 32%, 24%, and 21% respectively citing incentives as a reason. Additionally, J.D. Power’s study found that 43% of EV shoppers had only vague or marginal knowledge about EV incentives, indicating a need for better awareness and education around the available incentives for electric vehicle buyers.
The study also highlighted the financial benefits that customers receive from federal incentives when purchasing or leasing an electric vehicle. On average, consumers who bought an EV in 2024 saved an average of $5,124 due to federal EV tax incentives, which was higher than in previous years. In 2023, customers saved an average of $4,302, and in 2022, the average savings due to federal tax incentives was $1,629. These savings demonstrate the importance of federal incentives in making electric vehicles more affordable for consumers.
Overall, the J.D. Power study sheds light on the significant impact that federal incentives have on the purchasing decisions of customers buying electric vehicles. While some brands and customers are more influenced by incentives than others, it is clear that incentives play a crucial role in the growing adoption of EVs. As the electric vehicle market continues to expand, it will be important for policymakers and industry stakeholders to consider the role of incentives in driving consumer interest and making EVs more accessible to a wider range of customers.
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