What Are the Hurdles Preventing Widespread Adoption of Electric Vehicles?

NATIONAL REPORT — The industry is taking steps to meet the needs of electric vehicle (EV) owners; however, sales of gas-powered cars still outnumber sales of EV.

According to AAA, 96 percent of EV owners would buy or lease another one the next time they are shopping for a new car. In addition, sales of EVs through the first five months of 2021 grew 150 percent compared to the same period last year.

Citing data from the Pew Research Center, AAA noted, that were nearly 1.8 million EVs registered in the United States in 2020 — three times the number in 2016. However, they only accounted for 2 percent of the new cars purchased in the U.S. last year.  

"Although 40 million Americans have shown interest in buying electric for their next car, actual adoption is happening at a much slower rate," said Greg Brannon, AAA's director of automotive engineering and industry relations.

In a recent report, AAA called out three main hurdles to widespread EV adoption: upfront cost, range anxiety and lack of infrastructure.

Those hurdles can be overcome, the association added. For example, the cost of an EV has been coming down and a federal tax credit of up to $7,500 per EV may be available depending on the model as well as the owner's tax liability.

In addition, local and federal governments appear committed to improving infrastructure. In 2019, two-thirds of U.S. mayors voiced their support of improving infrastructure even at the cost of additional parking spaces, according to AAA.

The proposed $1-trillion federal infrastructure bill is also allocating $7.5 billion to fund the installation of 500,000 public charging stations across the country.