Affordability remains an obstacle for many potential EV buyers, Gary Silberg, KPMG global automotive sector leader, said. Silberg said he expects demand for EVs to continue to grow but sees affordability as an important caveat to industry optimism.
"A lot of people are excited about the opportunity, but I don't know how many people can afford it," Silberg said.
On the survey, households with incomes of at least $100,000 were much more likely to report already owning an alternative-fuel vehicle than households with lower incomes and were more likely to be considering an alternative fuel vehicle if they did not already own one.
Consumers in lower income brackets are the least likely to be considering a hybrid or EV, despite being the most likely to be concerned about rising gasoline prices.
Inflation Reduction Act tax credits for EV buyers could help change the landscape in the next few years, Silberg said, but the impact will take time as manufacturers adjust supply chains to qualify for the credit.
For dealers, being able to solve customers' high-tech vehicle problems is essential in a hybrid and electric future, Silberg said. "If someone has a tech question, they have to be able to do it," Silberg said. "I think that is the secret sauce for them going forward."