A Brighter Take on EVs
Study shows growth likely to continue despite loss of incentives

Though limited charging infrastructure in less urban areas has deterred some to switch to electric, many are interested, and current EV owners tend to be loyal to the power train.
Pexels/Kindel Media
It certainly seemed like a blow to electric-vehicle sales when federal tax credits ended on Oct. 1, but recent research shows demand is healthy and points to potential sales growth.
Though EV sales slumped in October by 53%, the J.D. Power research shows the vast majority of current EV owners will stick with the power train on their next car purchases, and 60% of survey respondents said they'll likely consider buying an EV in the next 12 months, up nearly three percentage points month-over-month and its highest point since January.
The October EV sales plunge was expected, since many consumers rushed EV purchases to lock in the expiring credits. “The big question now is whether that decline represents a true shift in consumer sentiment away from EVs or more of a rebound-effect following several months of surging sales,” J.D. Power said in its report.
Based on its research, the market watcher expects EV demand to stabilize if not continue the growth track it was on before the Trump administration axed EV subsidies and targeted federal EV charger funding.
For one, people who already drive EVs tend to stick with the power train, 94% of EV owner survey respondents saying they are likely to replace theirs with electric models for their next purchase or lease. Of returning franchised dealer EV customers so far this year, 62% drove away in a new EV, according to the report.
The top reason EV owners stay on the electrified route is expected lower cost to operate the vehicles, and that belief apparently plays out for most, the research found. Sixty percent indicate they’re much less expensive to drive than gas-powered cars, 26% slightly less expensive.
Other factors in EV loyalty include the vanished incentives, driving performance, purchase or lease price and vehicle design.
Combined with the satisfaction and new consumer interest are a passel of returning EV lease units next year, according to J.D. Power, which estimated returns will exceed this year’s volume by more than three times to 243,000 ending franchised dealer leases.
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