Summary

A McKinsey survey of over 15,000 European consumers reveals strong growth in electric vehicle (EV) adoption, reaching 16% of new car sales in 2024. While concerns remain about price, charging infrastructure, and battery range, 38% of non-EV owners plan to buy an EV next, preferring longer ranges (around 500km). The study also highlights the emergence of new EV brands, including Chinese manufacturers, impacting consumer choices and competition within the market. Finally, the report analyzes the growing, yet still nascent, European EV market and the challenges in overcoming consumer hesitancy.

Key Themes:

• Sustained Momentum in EV Adoption: European EV sales remain robust despite the phasing out of subsidies. 38% of non-EV owners intend to purchase an EV for their next vehicle. This indicates a shift from early adopters to a broader mainstream market, with diverse expectations.


• Addressing Consumer Concerns: While EV interest is high, price concerns, charging infrastructure, and real-world range persist.


• New Market Entrants: New players, particularly Chinese brands, are entering the European market, offering diverse models with attractive features. This presents both opportunities and challenges for established European brands.


• Challenges in the Second-hand Market: Despite growth in new EV sales, the second-hand EV market remains underdeveloped, with concerns around battery degradation and resale value hindering adoption.

Key Findings:

• Range Anxiety Remains a Key Barrier: "Only if the range were around 500 kilometers would [potential buyers] switch from a combustion engine to a BEV." This highlights the need for manufacturers to prioritize real-world range improvement to meet consumer expectations.


• Charging Infrastructure Concerns: More than 75% of potential buyers expect public chargers to provide an 80% charge within 30 minutes. The availability and speed of charging remain crucial factors influencing purchase decisions.


• Shifting Consumer Preferences: EV buyers prioritize advanced driver-assistance systems (ADAS) and connectivity features more than traditional car buyers. This suggests that EVs are perceived as technologically advanced, and appealing to younger, tech-savvy consumers.


• Potential for Reversal in EV Adoption: 19% of European EV owners may revert to combustion engine vehicles due to factors like high total cost of ownership, insufficient charging infrastructure, and impact on long-distance travel.


• Emerging Brands Attract Attention: Chinese and other international brands are gaining traction in the European market by offering long-range EVs with innovative features and competitive pricing. This could challenge established European brands.


• Perception of Chinese Brands: While some consumers express concerns about the quality and data security of Chinese EVs, their value proposition and advanced features are increasingly recognized. "About half of the respondents said that they would consider a Chinese EV only if it were at least 15% cheaper than a comparable European model."


• Second-Hand Market Challenges: Concerns about battery degradation, high prices, and limited after-sales service hinder the growth of the second-hand EV market. Addressing these concerns is crucial for wider EV adoption.

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