While the new Trump administration is expected to end federal tax credits for electric vehicle (EV) purchases and leasing, another survey shows just how popular these EV rebates remain.
According to a survey by California-based nonprofit Veloz, 67% of Americans say the government, whether federal, state or local, should provide incentives to purchase electric vehicles.
And if the Trump administration ends federal incentives, 61% say they want state and local governments to step in and increase their support for electric vehicles.
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That's largely what California has already announced: Gov. Gavin Newsom has said he will revive the state's electric vehicle tax rebates should the new administration end federal support.
Unsurprisingly, behind consumers' justification for supporting government incentives is the issue of cost: when Veloz survey participants were asked what might stop them from purchasing an electric vehicle, 48.4% of respondents said ” Cost of purchase” is the main concern.
On the other hand, cost savings on gasoline are the main reason for choosing an electric vehicle for 51.9% of survey respondents.
A recent study from JD Power also showed that federal tax credits have played a critical role in consumer decisions regarding electric vehicles: 64% of premium brand electric vehicle owners and 49% of mass market electric vehicle owners said that incentives were a primary reason Their decision was to buy or lease their electric vehicle. More specifically, the JD Power survey found that owners of Volkswagen, Chevrolet and Tesla were most influenced by the incentives.
If government incentives disappear, a key question for American consumers will be whether increasingly intense global competition among manufacturers will continue to put downward pressure on prices in the States.
Chinese manufacturers that make the world's cheapest electric vehicles have shelved plans to enter the U.S. market directly after the Biden administration imposed 100 percent tariffs on Chinese-made electric vehicles last September.
It remains to be seen how tariffs, combined with the end of government stimulus, will impact consumer demand.
