Transitioning to Electrified Vehicles: Dealers Brace for a Sequential Journey from Hybrids to BEVs

The latest findings from McKinsey's annual Consumer Pulse Survey reveal intriguing trends about electrified vehicle (EV) adoption in the United States. While other developed regions, particularly China, are making significant strides in EV adoption, America remains behind.

Among consumers polled, longer range takes precedence over quicker charging. This preference is largely influenced by a distrust of Chinese cars, with 75% of Americans expressing concerns about potential connected car tracking abilities and perceived national security risks. However, it's worth noting that a quarter of U.S. car consumers are open to Chinese-brand vehicles.

PHEVs (Plug-in Hybrid Electric Vehicles) perform comparatively better in the U.S., with 17% of consumers indicating they would buy one. This could be a stepping stone towards full BEV (Battery Electric Vehicle) adoption, as Peter Chung, president of Toyota of Tri-Cities in Kennewick, WA, speculates that some consumers may initially buy a hybrid or PHEV and then "work their way up to a BEV."

Younger people show a greater interest in new electrified vehicles compared to people 45 and older. As more Americans are exposed to EVs, they're likely to warm up to them, according to McKinsey senior partner, Philipp Kampshoff.

Despite consumer concerns about EVs, such as battery life, slow public charging devices, finding free parking stations, and an insufficient number of charging points, satisfaction with driving range of BEVs is on the rise. Satisfaction has increased from 60% in 2024 to 73% in 2025.

Interestingly, as BEV leasing grows, particularly in some spots where it's as high as 80%, consumers are shifting from buying to leasing BEVs. This trend is reflected in the growing number of used BEVs on dealership lots, a result of rental companies thinning out their BEV fleets due to customers' lack of interest.

Tesla is taking active measures to reduce its inventory of used BEVs by aggressively marketing them through leasing offers without down payments. On the other hand, Ford is scaling back some electric vehicle plans and closing production facilities due to poor market uptake, indicating a retreat rather than active promotion to reduce BEV fleets.

The survey does not delve into used BEVs, but their numbers on dealership lots are growing. Twelve percent of Americans say their next car will be a BEV compared with 45% of Chinese and 23% of Europeans. Despite this, most of the American BEV buyers don't feel buyer's remorse, suggesting a positive outlook for the future of EV adoption in the U.S.

In conclusion, while the jump to BEVs is not happening in America at the same pace as in other regions, the trends indicate a gradual warming up to electrified vehicles. As concerns are addressed and awareness increases, we may see a significant shift in the near future.

Transitioning to Electrified Vehicles: Dealers Brace for a Sequential Journey from Hybrids to BEVs