(Reuters) – The variety of consumers within the U.S. contemplating an electrical automobile buy in 2024 has fallen from a 12 months in the past on account of a scarcity of inexpensive vehicles, insufficient charging infrastructure and ignorance about EV advantages, a examine by J.D. Power has proven.

Other components contributing to waning EV demand within the United States embody cussed inflation, excessive rates of interest and underwhelming progress in mannequin availability, the examine stated.

WHY IT’S IMPORTANT

U.S. automakers invested billions in creating EV fashions and ramping up manufacturing. But they’ve needed to decelerate a few of these plans as demand for EVs softened over the previous few quarters.

CONTEXT

Falling demand for EVs has pressured gross sales at U.S. automakers. In April, EV chief Tesla (NASDAQ:) stated its quarterly income fell for the primary time since 2020, when the COVID-19 pandemic hampered manufacturing and deliveries.

The identical month, Ford Motor (NYSE:) recorded a $1.3 billion working loss within the first quarter for its EV and software program division.

BY THE NUMBERS

The examine confirmed that 24% of potential automobile consumers have been “very likely” to think about buying an EV in 2024, down from 26% a 12 months in the past.

The proportion of those that stated they have been “overall likely” to think about buying an EV this 12 months decreased to 58%, from 61% in 2023, the report stated.

KEY QUOTES

“Approximately 40% of shoppers say they do not have a solid understanding of incentives,” stated Stewart Stropp, govt director of EV intelligence, J.D. Power.

“In previous years, the number of viable EVs that met shoppers’ needs increased substantially year over year. This year, it’s been more incremental,” he stated.

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