The application of the EV has become the greatest single event to take place in the automotive industry since the invention of the internal combustion engine. EVs carry lots of advantages such as government grants, all sorts of tax cuts, superior efficiency, and lower emissions.
All of this makes them increasingly more desirable to many potential customers around the world even though the ease of use EVs tend to carry is nowhere near ICE cars. However, the mass application of electric cars is a rather difficult task to accomplish because EVs are still out of most people’s price bracket.
This ought to change in the coming years when more and more manufacturers invest in EV technologies and batteries which should make the market more competitive and thus lower the entry price. Be that as it may, EVs are still mostly reserved for the wealthiest households out there.
The wealthiest 10% of households in the US bought more than 37% of EVs in 2019 which was around 16k EVs. The 10% of least wealthiest US households only bought 304 EVs in 2019. The general rule of thumb was: The lower the income class the lower the amount of EVs bought.
Electric cars bought per a specific income class
It comes as no surprise that high-income households buy more cars in general when compared to every other income class household out there. The difference between the top 10% and the 10% after that is almost twice the number of cars considering that the wealthiest 10% bought around 16k EVs in 2019, and the next 10% bought almost half that.
These number ratios tend to follow the same trajectory the lower the household income which perfectly showcases that EVs are still reserved for the most fortunate. The top 10% bought 39 times the amount of EVs when compared to the bottom 10% which only bought a few hundred of them.
It’s worth mentioning that the amount of cars a household usually has does not vary all that much for the 70% of the wealthiest households out there. Only 30% of the least wealthy households create a margin large enough for it to be mentioned.
All in all, every 5th car in a wealthy household is an EV while lower-income households still buy petrol/diesel cars primarily, and seeing an EV in such circumstances is rather rare.
Electric cars bought per different age groups
Another important aspect to consider while looking at who tends to buy EVs is to look at specific age groups. People born between the 1960s and 1980s are often referred to as “the gen x”, and they are the ones that purchase the majority of EVs, more specifically almost 40% of all EV buyers reside in this age group.
Millennials were born between after the gen x, more specifically between the 1980s and mid-1990s. They are close behind generation x as far as EV purchases are concerned because they are buying around 35% of EVs out there.
Even though these demographics tend to shift fast because more and more people are adopting EVs, it’s still a sign that even the older generation is fond of EVs which was not something anyone expected. Either way, it is expected that the next generation of drivers is likely going to be the one that buys the largest amount of EVs out there.
Electric cars bought per a specific state
Different regions in the US have different perspectives as far as EV use is concerned. California is the most EV-oriented state in the US by quite some margin because 45% of all 2018 EVs registered in the US were registered in sunny California.
Florida and Washington are also increasingly fonder of EVs but they are nowhere near California because EV desirability in California seems to be growing the fastest. Another aspect that needs to be considered is the general availability of EVs in the US because there aren’t many of them out there, not even in 2021.
However, California keeps on dominating the EV segment because more than 45% of Tesla Model S models are residing in California. This is mostly because California seems to be the most environmentally conscious state in the US and because the people that reside in California have the means to acquire an EV.
Does it make sense to buy an EV in 2021?
The answer to this question depends on where you live and how you tend to use your car. If you live in states such as California or countries such as Norway which have a well-developed charging infrastructure, buying an EV makes more sense than buying one in the UK where the charging infrastructure is rather lacking when compared to similar countries.
You also need to consider how you tend to use your car because EVs are best for urban city environments. If you spend the majority of your driving time on the highway, it’s better to opt for an ICE car because these are still superior as far as convenience is concerned.
What are the best EVs on the market right now?
The best all-around EV on the market right now is the Tesla Model 3 because it combines relative value with a great EV platform. The Model 3 is large enough to be a decent cruisier while not overly so which also makes it a great city runaround.
If you want a cheap but capable EV, be sure to check out either the Hyundai Kona or the Chevy Bolt. If you want a high-end EV that is packed with all sorts of gadgetry and wizardry, be sure to check out the Porsche Taycan.
Are EVs going to become cheaper in the future?
EVs are likely to drop in price in the coming years because the prices to develop an EV are likely to go down as well. Because the EV market is still in its infancy automakers are not able to deliver EVs comparable to their ICE counterparts from the price to what-you-get-for-the-price perspective.
ICE cars have been in production for a long time which means that most automakers have found ways to lower the production costs and because ICE cars are still overselling EVs by a huge margin. Finally, the costs associated with battery development are also decreasing at a fast rate which should also lower the price of next-gen EVs if everything goes according to plan.