Altman Solon is the largest global telecommunications, media, and technology consulting firm. In this insight, we share results from our bi-annual Auto Tech Survey, which examines consumer and industry perspectives on electric vehicle purchasing trends in the U.S. and U.K.
Despite some plateaus in growth, electric vehicles (EVs) are gradually entering the mainstream in the U.K. and are making slow and steady progress in the U.S.
That’s according to the latest release of Altman Solon's bi-annual Auto Tech Survey, which polled more than 1,400 U.S. consumers and nearly 500 U.K. consumers in 2024 to better understand their attitudes toward full EVs and plug-in hybrid electric vehicles (PHEVs).
The U.S. has passed significant legislation to encourage ownership of EVs, yet adoption there has still lagged behind the U.K. It should be noted that the fate of U.S. EV subsidies is, as of writing, up in the air as the Trump administration has made moves to eliminate them.
Those who responded that they intend to purchase an EV said they are mostly interested in the financial upsides surrounding ownership — from gas and maintenance-related cost savings to the tax credits available to U.S. consumers. Findings suggest that it’s important for automotive original equipment manufacturers (OEMs) to communicate these advantages of EV ownership to consumers.
At the same time, our survey revealed that “range anxiety” is still very real. It’s the top concern for consumers in both the U.S. and the U.K. Many consumers say the lack of charging infrastructure is a major impediment to them purchasing an EV, along with the high price tag these vehicles carry. This suggests that improvements to charging infrastructure might be necessary for greater adoption of full EVs.
It should be noted that consumers in both markets drive approximately 45 minutes a day, putting them well within the range of a fully charged EV. What's more, EV's range has significantly increased. However, the U.K. and U.S. have been slow with charging station rollouts, and questions concerning charging interoperability and reliability compound consumer anxiety.
It’s no surprise, then, that PHEVs have shown significant lasting power as more than just a short-term “bridge” toward full electrification. The survey results, in fact, show that half of U.S. consumers who intend to purchase an EV at some point in the future said they prefer a PHEV over a full EV.
The adoption of full EVs has been slower than many original equipment manufacturers initially planned, and they are adjusting to meet consumer demand. For instance, Ford nixed plans for its new fully-electric SUV and is pivoting to invest in more hybrid trucks and SUVs. Other auto manufacturers may follow suit, leading to lower prices and greater adoption of hybrid plug-ins.
Regulations and subsidies continue to play an important role in convincing consumers to transition from internal combustion engine (ICE) vehicles to EVs in the U.S. However, there is uncertainty about the future of these federal incentives because of the new administration.
Individual states may continue to play a role in offering tax rebates and incentives for EV adoption, though that’s not an across-the-board solution for U.S. consumers.
Such incentives have already expired in the U.K., so they don’t have an impact on EV purchasing there. There are still some subsidies available, though, for the purchase and installation of a home charging point as well as exemptions for road taxes.
For mass adoption of full EVs, infrastructure buildouts need to keep pace with demand. At the same time, governments and OEMs should focus on consumer education to assuage fears concerning vehicle range and charging options and remind consumers of cost savings and potential subsidies. With PHEVs having more staying power than originally thought, full EV makers will need to up their game. Benefits will need to be clearly and constantly conveyed, charging infrastructure will need to spread and improve, and product-market fit of other differentiated features such as autonomous driving will need to prove out.
These trends can be seen in Tesla’s recent rekindled interest in wireless charging and teasing of a Robotaxi with no charging port. Others investing billions in building similar networks should be analyzing these dynamics carefully to ensure their investments are right-sized and appropriately future-proofed.
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