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Automotive: More U.S. consumers than last year say they prefer gas-powered vehicles over electric or hybrid

Why it is the topic trending:

  • Decreased EV Interest: A recent survey shows a drop in US consumer preference for electric vehicles compared to the previous year.

  • Increased Gas Vehicle Preference: More consumers now state a preference for traditional gas-powered vehicles over EVs or hybrids.

  • Concerns about EVs: Charging infrastructure and range limitations are cited as significant concerns influencing consumer preferences.

  • Automaker Adjustments: Car manufacturers are reportedly re-evaluating their aggressive EV production plans in response to consumer demand.

Overview:

The article discusses the findings of KPMG's annual American Perspectives survey regarding US consumer preferences for vehicle powertrains in 2025. The survey indicates a notable shift away from electric vehicles and back towards traditional gas-powered vehicles compared to the previous year. This trend is attributed to ongoing consumer concerns about EV charging infrastructure and range, prompting some automakers to reconsider their electrification strategies despite significant investments in the technology.

Detailed Findings:

  • Preference Shift: The survey revealed that 42% of US consumers prefer gas-powered vehicles (up from 38% in 2024), while only 16% prefer EVs (down from 21% in 2024). Hybrid preference remained relatively stable.

  • Reasons for Shift: Consumers express concerns regarding the availability and reliability of EV charging infrastructure and the limited driving range of electric vehicles.

  • Automaker Response: Several automakers, including Ford and Honda, are reportedly scaling back their EV production plans and investments, with some focusing more on hybrid vehicles.

  • EV Sales Data: Despite the preference shift, EV sales in Q1 2025 showed year-over-year growth, capturing 7.5% of the total new vehicle market.

  • Tariff Impact: A significant portion of consumers indicated that tariffs are influencing their auto purchase decisions, with many delaying purchases or buying sooner to avoid anticipated price hikes.

Key Success Factors of Product (Trend):

  • Familiarity and Comfort: Gas-powered vehicles represent a familiar and well-understood technology for most consumers.

  • Established Infrastructure: The widespread availability of gasoline fueling stations alleviates range anxiety.

  • Perceived Reliability: Consumers may have established perceptions of reliability associated with traditional internal combustion engines.

  • Addressing Practical Concerns: Automakers acknowledging and addressing consumer concerns about EV infrastructure and range could be a factor.

  • Pricing Considerations: The article mentions price parity, suggesting that at the same price point, other factors are influencing preference.

Key Takeaway:

Despite the ongoing push towards electrification in the automotive industry, a recent survey indicates a growing preference among US consumers for familiar gas-powered vehicles, driven by concerns about EV infrastructure and range, leading some automakers to adjust their future production strategies.

Main Trend:

The Cooling of EV Enthusiasm in the US

Description of the Trend:

This trend signifies a potential plateauing or even a slight reversal in the previously strong growth of consumer interest and preference for electric vehicles in the United States. Despite continued investment and advancements in EV technology, factors such as infrastructure limitations and range concerns are contributing to a renewed preference for traditional gasoline-powered vehicles.

What is Consumer Motivation:

  • Practicality and Convenience: Consumers prioritize the ease and convenience of refueling a gas-powered vehicle due to the readily available infrastructure.

  • Alleviating Range Anxiety: The established range of gas vehicles provides consumers with more confidence for longer journeys.

  • Lower Perceived Risk: Familiarity with gas engine technology may lead to a lower perceived risk compared to newer EV technology.

  • Upfront Cost Considerations (Indirect): While the survey assumes price parity, the current higher cost of EVs might still subconsciously influence sentiment.

  • Personal Experience and Comfort: Consumers may have existing positive experiences with gas-powered vehicles and feel more comfortable with what they know.

What is Driving Trend:

  • Limitations of Charging Infrastructure: The current charging network for EVs is not yet as widespread or reliable as gasoline stations, causing concern for consumers.

  • Range Concerns: Some consumers worry about the limited driving range of EVs, particularly for long trips.

  • Economic Uncertainty: In uncertain times, consumers might stick with familiar and potentially less expensive vehicle options.

  • Government Policy Ambiguity: Potential changes in EV incentives and tariffs might be causing consumer hesitation.

  • Automaker Messaging Shifts: As automakers adjust their EV plans, their messaging might also subtly influence consumer perceptions.

What is Motivation Beyond the Trend:

  • Established Habits: Consumers are accustomed to the refueling process and driving experience of gas-powered vehicles.

  • Sense of Freedom and Independence: The ability to quickly refuel anywhere may contribute to a greater sense of freedom for some drivers.

  • Sound and Feel of Traditional Engines: Some consumers may have a preference for the auditory and tactile experience of internal combustion engines.

  • Longer Track Record of Maintenance and Repair: The established network for servicing gas vehicles might provide a sense of security.

  • Lower Initial Investment (Generally): While the survey presents price parity, the reality of EV costs might still play a role in overall preference.

Description of Consumers Article is Referring To:

The article refers to a broad sample of 2,500 adults across the United States who participated in KPMG's annual American Perspectives survey.

  • Who are them: Adult consumers across the United States.

  • What kind of products they like: Automobiles, specifically identifying preferences between gas-powered vehicles, hybrids, and electric vehicles.

  • What is their age?: Not explicitly specified, but the survey includes a representative sample of adults.

  • What is their gender?: Not explicitly specified.

  • What is their income?: Not explicitly specified, but the survey aims for a broad representation of US adults.

  • What is their lifestyle: Includes individuals who own or plan to purchase vehicles for personal transportation.

  • What are their category article is referring shopping preferences: Automotive purchases.

  • Are they low, occasional or frequent category shoppers: Represents individuals in the market for a new or used vehicle.

  • What are their general shopping preferences-how they shop: Includes factors like price, practicality, convenience, and personal preferences regarding vehicle type and technology.

Conclusions:

The KPMG survey suggests a current cooling of enthusiasm for electric vehicles among US consumers, with a growing preference for traditional gas-powered vehicles, primarily due to concerns about charging infrastructure and range limitations. This shift is prompting some automakers to re-evaluate their aggressive electrification strategies for the near future.

Implications for Brands:

  • Automakers: May need to balance investments in EV technology with continued development and marketing of gas-powered and hybrid vehicles.

  • Charging Infrastructure Providers: Need to accelerate the expansion and reliability of the EV charging network to address consumer concerns.

  • Energy Companies: Will need to adapt to evolving energy consumption patterns based on vehicle powertrain preferences.

Implication for Society:

  • Potential Slower Transition to Electric Mobility: The shift in consumer preference could impact the pace at which the US transitions to electric vehicles.

  • Continued Reliance on Fossil Fuels: A stronger preference for gas-powered vehicles suggests a continued reliance on traditional fuel sources.

Implications for Consumers:

  • Wider Range of Vehicle Choices: Consumers will likely continue to have a variety of powertrain options available.

  • Potential for Competitive Pricing: Automaker competition across different vehicle types could lead to more competitive pricing.

Implication for Future:

  • Continued Monitoring of Consumer Preferences: Automakers and policymakers will need to closely track evolving consumer sentiment towards different vehicle technologies.

  • Focus on Addressing EV Concerns: Efforts to improve charging infrastructure, battery technology, and range will be crucial for future EV adoption.

Consumer Trend:

Name: Pragmatic Powertrain Preference

Detailed Description: US consumers, facing economic uncertainty and practical concerns, are currently showing a preference for familiar and convenient powertrain options, leading to a resurgence in interest for traditional gas-powered vehicles over electric vehicles, despite the ongoing industry shift towards electrification.

Consumer Sub Trend:

Name: Infrastructure Dependent EV Adoption

Detailed Description: The rate of electric vehicle adoption among US consumers appears to be heavily dependent on the perceived adequacy and reliability of the public charging infrastructure, with current concerns acting as a barrier for some.

Big Social Trend:

Name: Balancing Innovation with Practicality

Detailed Description: In the face of rapid technological advancements, consumers are often balancing the appeal of innovation with practical considerations such as cost, convenience, and reliability in their purchasing decisions.

Worldwide Social Trend:

Name: Varied Pace of Electrification Globally

Detailed Description: The transition to electric vehicles is occurring at different speeds and with varying levels of consumer enthusiasm across different regions and countries worldwide.

Social Drive:

Name: The Desire for Reliable Personal Transportation

Detailed Description: Consumers are fundamentally driven by the need for reliable and convenient personal transportation that fits their daily needs and provides peace of mind regarding refueling and range.

Learnings for brands to use in 2025:

  • Acknowledge Consumer Concerns: Understand and address consumer anxieties related to EV infrastructure and range in your messaging.

  • Highlight the Benefits of Current Offerings: If you produce gas or hybrid vehicles, emphasize their advantages in terms of convenience and familiarity.

  • Continue Investing in EV Solutions: Maintain investment in electric vehicle technology to address future consumer needs as infrastructure improves.

  • Offer Diverse Powertrain Options: Cater to a range of consumer preferences by providing a variety of vehicle types, including gas, hybrid, and electric.

  • Track Consumer Sentiment Closely: Continuously monitor evolving consumer attitudes towards different vehicle technologies.

Strategy Recommendations for brands to follow in 2025:

  • Communicate Clearly About EV Advancements: Highlight improvements in EV range and charging technology to alleviate consumer concerns.

  • Invest in Partnerships to Expand Charging Infrastructure: Collaborate with charging network providers to increase accessibility and reliability.

  • Offer Hybrid Models as a Transitional Option: Position hybrids as a practical middle ground for consumers not yet ready for full electrification.

  • Tailor Marketing to Different Consumer Segments: Address the specific needs and preferences of both EV enthusiasts and those leaning towards traditional vehicles.

  • Provide Educational Resources About EVs: Offer clear and accessible information to help consumers understand the benefits and address their concerns about electric vehicles.

Final sentence (key concept) describing main trend from article:

A recent survey indicates a growing preference among US consumers for gas-powered vehicles over electric or hybrid options, signaling a cooling of EV enthusiasm driven by infrastructure and range concerns.

What brands & companies should do in 2025 to benefit from trend and how to do it:

  • Automakers should strategically balance their production and marketing efforts between electric, hybrid, and gas-powered vehicles to align with current consumer demand, while continuing to invest in long-term electrification goals.

  • Charging infrastructure companies need to prioritize rapid expansion and reliability improvements of their networks to address a major barrier to wider EV adoption and regain consumer confidence.

  • Governments and policymakers should consider policies and incentives that directly address consumer concerns about EV affordability, charging availability, and range to encourage a smoother transition to electric mobility.

  • Traditional automotive manufacturers should leverage their existing strengths in internal combustion engine technology while strategically and cautiously navigating the shift towards electrification, ensuring profitability across their diverse product lines.

  • Marketing efforts across the automotive industry should focus on clear communication about the benefits and drawbacks of each powertrain type, directly addressing consumer concerns and providing transparent information to guide their purchasing decisions.

Final Note: Core Trend

  • Name: Resurgent Preference for Internal Combustion Engines

  • Detailed Description: A recent survey suggests a noticeable increase in US consumer preference for traditional gas-powered vehicles, indicating a potential slowdown in the anticipated rapid shift towards full electrification of the automotive market.

Final Note: Core Strategy

  • Name: Balanced Powertrain Portfolio Approach

  • Detailed Description: Automotive manufacturers should adopt a balanced strategy that continues to cater to the demand for gasoline vehicles and hybrids while strategically developing and marketing electric vehicles, addressing consumer concerns to encourage future adoption.

Final Note: Core Industry Trend

  • Name: EV Adoption Contingent on Infrastructure Development

  • Detailed Description: The widespread adoption of electric vehicles in the US market appears to be heavily contingent on significant and reliable improvements in the charging infrastructure network to alleviate consumer anxieties.

Final Note: Core Consumer Motivation

  • Name: Prioritizing Convenience and Addressing Practical Concerns in Vehicle Choice

  • Detailed Description: US consumers are currently prioritizing the convenience and established practicality of gasoline-powered vehicles, primarily due to ongoing concerns about the charging infrastructure and driving range limitations associated with electric vehicles.

Final Conclusion:

The latest survey data reveals a significant pause in the anticipated surge of electric vehicle preference among US consumers, highlighting the persistent appeal of traditional gasoline-powered vehicles and underscoring the critical need to address infrastructure and range concerns to accelerate the transition to electric mobility in the future.

Core Trend Detailed:

  • Description: Resurgent Preference for Internal Combustion Engines signifies a notable increase in the proportion of US consumers who, when given a choice at the same price point, are now leaning towards traditional gasoline-powered vehicles over electric or hybrid options. This trend marks a potential deceleration in the predicted rapid adoption of electric vehicles in the American automotive market and suggests that despite increasing awareness of environmental benefits and technological advancements in EVs, established preferences and practical considerations related to gas-powered vehicles are currently holding stronger sway.

    • Key Characteristics of the Trend:

      • Increase in Gas Vehicle Preference: The survey shows a rise from 38% in 2024 to 42% in 2025 in the percentage of consumers preferring gas-powered vehicles.

      • Decrease in EV Preference: Concurrently, interest in electric vehicles has declined from 21% in 2024 to 16% in 2025.

      • Stable Hybrid Preference: The preference for hybrid vehicles has remained relatively consistent, indicating a segment of consumers still interested in an alternative to traditional gasoline.

      • Influence of Practical Concerns: Consumer concerns about the availability and reliability of EV charging infrastructure and the limitations of driving range are key factors driving this preference.

    • Market and Cultural Signals Supporting the Trend:

      • KPMG Annual American Perspectives Survey: The findings of this reputable survey provide quantitative data indicating the shift in consumer preferences.

      • Automaker Adjustments to Production Plans: Reports of automakers scaling back EV production and focusing more on hybrids suggest that the industry is recognizing and responding to this consumer sentiment.

      • Analyst Warnings About Market Momentum: Experts are cautioning that the initial strong growth in EV sales may not be sustained throughout the year.

    • How the Trend Is Changing Consumer Behavior:

      • Delaying or Reconsidering EV Purchases: Some consumers who were considering purchasing an EV may now be delaying their decision or opting for a gas-powered or hybrid vehicle instead.

      • Prioritizing Infrastructure and Range in Research: Consumers researching vehicles are likely placing a higher emphasis on the practicality and convenience related to refueling or recharging.

      • Seeking Familiar Technology: There may be a tendency to stick with the well-known and understood technology of internal combustion engines.

    • Implications Across the Ecosystem:

      • For Brands and CPGs: Increased marketing opportunities for products related to gasoline vehicle maintenance and care.

      • For Retailers: Continued demand for gasoline and potentially slower growth in the demand for EV charging equipment.

      • For Consumers: A wider array of gas-powered vehicle options may remain available for longer, potentially with competitive pricing.

  • Strategic Forecast: While the long-term trend towards electrification is expected to continue, this data suggests a more gradual transition than initially anticipated. Automakers will likely adopt a more balanced approach to their powertrain offerings, and significant improvements in EV infrastructure and technology will be crucial to regain and sustain consumer enthusiasm for electric vehicles.

  • Final Thought (summary): Despite ongoing industry efforts to promote electric vehicles, a recent survey reveals a growing preference among US consumers for the familiarity and convenience of gas-powered vehicles, highlighting persistent concerns about charging infrastructure and range that are influencing current automotive purchase intentions.

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