The under-30s are losing interest in electric cars, which many of them see as being too expensive to purchase, according to a recent survey by management consultancy Simon-Kucher.
The poll showed that only 52% of the under-30s are still considering buying an electric car – a decline of nine percentage points compared to last year.
For the survey, canvasser Dynata asked 1,007 consumers in Germany about brand perception, technological innovation and their purchasing decisions.
"Manufacturers now need to respond in a differentiated manner to different age and price segments," said Simon-Kucher partner Matthias Riemer.
The figures come as a surprise since younger people have generally shown a stronger interest in electric vehicles (EVs) than older generations. Analysts have often pointed to younger buyers being increasingly less interested in engine power and more in state-of-the-art technology that is intuitive and easy to use.
Their enthusiasm is also driven by factors such as environmental consciousness, the appeal of innovative technology and digital-native tendencies.
However, the perceived higher costs of buying and running an EV appear to be a barrier preventing many young people from purchasing an EV, even amid growing interest.
Experts say young buyers are price-sensitive, and this is where the automobile industry is failing to provide suitable offerings.
While Chinese manufacturers are already launching affordable entry-level models with comprehensive features, European brands are lagging behind. New vehicle concepts or affordable base models remain the exception.
Many German-made electric cars come across as high-tech products with premium aspirations. Millenials and those slightly older are not looking for prestige but practicality.
They want a reliable everyday car which offers a stable residual value and is therefore an economically viable alternative to a petrol or diesel car.
“Young buyers often do not yet belong to the affluent target group,” Alexander Dietz from Simon-Kucher told the German automotive gazette Automobilwoche. He believes the combustion engines are seen by many as a safer bet.
What appears to fly in the face of the largely positive view of EVs among young adults is borne out by an automotive barometer from the financial group Consors Finanz.
The group's international survey, carried out in 14 countries and surveying 16,000 people aged between 18 and 65, found that 60% of under-30s said they see the future in electric mobility, however only 27% actually plan to buy such a vehicle, while 59% said the high price of cars was the main obstacle.
This was shown by a strong preference across Europe for more affordable second-hand combustion engine models, which are also more common and cheaper to buy than used electrics.
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