We asked potential EV-owners around the world: For Would-be Buyers, Fuel Costs Are Still Top of Mind

Higher gas prices are making most consumers consider buying an electric vehicle, and free charging tops their wish list.

Many commuters have felt the pain at the gas pump this summer. Pent up demand for travel during the COVID pandemic, along with the war in Ukraine and still disrupted supply chains, have skyrocketed gasoline prices. While crude oil prices have dipped in August, they remain higher than a year ago. A high gas bill is motivating nearly three-fourths of consumers to consider buying an electric vehicle, according to our international Oliver Wyman Forum survey completed in June.

Chinese consumers are the most willing compared to those in Brazil, the UK, and the US, with only 11% saying that they won’t buy an EV regardless of gas prices – and may have no interest in buying any vehicle. They also carry the biggest budgets to do so, with nearly half of shoppers willing to spend between $20,000-$40,000. That high willingness perhaps comes as no surprise: Asia has one of the world’s largest EV fleets, and China offers a host of benefits to EV buyers, like subsidizing the purchases of those with longer driving ranges and allowing them to drive on restricted roads during rush hour.

These subsidies – originally planned to be phased out in 2020 but were extended after the COVID outbreak – are reportedly under consideration to be extended to another year by the Chinese government, with help from automakers.

Nearly half of UK shoppers said they were unwilling to buy an EV – or perhaps any vehicle, regardless of gas prices – the highest rate among the surveyed countries. That may be due to the UK government cutting its $351 million grant plan to offer subsidies for new EV purchases earlier this summer. The government instead is shifting those funds toward subsidies for electric taxis, motorcycles, vans, and other vehicles, along with expanding the region’s charging station network in a bid to end “range anxiety.” The latter is a supplement to the government’s $1.8 billion plan to build a public charging station network announced in March of this year.

Eradicating range anxiety is a wise move by any government looking to boost EV purchases, but it’s not what will motivate buyers the most, according to our survey. Asked to rank their top three wish list items to motivate them to buy an EV, free vehicle charging, a discount applied to their purchase, and free parking stations had the highest response rates. Free charging was the most wanted benefit, garnering 59% of responses.

Some automakers offer complimentary charging upon purchase, while governments are attempting to offer free or more affordable charging. In the UK, a large percentage of Scotland’s national charging network can be accessed for free, while China and the US both recently unveiled plans to make charging cheaper.

The cost of fuel, whether it’s gasoline or electricity, is clearly top-of-mind for consumers. Governments and automakers alike trying to pivot to more EVs on the road should take stock of what will most motivate buyers. Our survey data shows that the best use of public funds to achieve widespread EV adoption is to incentivize charging stations to meet consumer demand.