EV owners drive more on average versus their ICE counterparts

Environmental consciousness is in vogue and battery-powered vehicles are ushering in a new era of sustainable mobility across countries. Zero tailpipe emissions, reduced dependency on fossil fuels, spacious interior, lower cost of ownership and a quiet cabin describe the general sense of owning an electric vehicle (EV). Adoption of EVs is still at a nascent stage but in the bigger picture, they are penetrating markets everywhere. Global battery electric vehicles (BEVs) sales grew 29% YoY in the third quarter of 2023, as per latest data from Counterpoint research.

As car shoppers in the US deliberate about their future purchase from a sea of available options, JD Power’s 2023 Electric Vehicle Consideration Study reveals that 26% shoppers are “very likely” to consider purchasing an EV, up from 24% in 2022 while percentage of shoppers who are “overall likely” to purchase an EV has increased to 61% from 59% in 2022.

With more EVs being added to the global network of roads, newer long-term benefits and community trends are being uncovered. One such discovery is that EV owners tend to drive more as compared to their internal combustion engine (ICE) counterparts – a trend which is already being observed in Norway – a country which is way ahead in the EV adoption curve. EV owners in the country drive more miles on average per year than owners of petrol- or diesel-powered cars, a report by Statistics Norway unveiled. Owners of hybrid cars drove nearly as much.

The longest average commute distance of EV shoppers surveyed by CDK Global came out to be 20 miles.

A similar trend was observed among 1,000+ car shoppers surveyed by CDK Global in the US. Of the 29% EV shoppers in the batch, a third said they drove considerably more than their gas or hybrid shopping counterparts, putting between 15,000 and 20,000 miles on their vehicles every year. The distance is significantly more than the average 13,500 annual miles driven by drivers across car types and age groups in the country, according to data from the US Department of Transportation. The longest average commute distance of EV shoppers came out to be 20 miles as compared to 15 miles driven by gas shoppers and 14 miles driven by hybrid shoppers.

On similar lines, the JD Power study found that vehicle owners who drive more miles are likely to consider an EV for their next purchase. Among those who commute more than 45 minutes each way, 35% said they are “very likely” to consider an EV.

The findings allude to the fact that those driving an EV tend to spend more time on roads and vice versa. No wonder longer-range EVs coupled with fast-charging technologies are supporting their endeavours but what really is making the EV owners go the extra driving distance versus their ICE or hybrid counterparts?

Unit economics

All-electric Audi e-tron

When financial and environmental guilt evaporates from the conscience, it is organic for a person to experience a greater tendency to drive. Simply put, when driving costs less and doesn’t involve burning tonnes of fuel, one will do it more often. Despite coming with a costlier sticker price, the lower cost of ownership helps EVs reach the breakeven point sooner. In fact, some of the most expensive repairs a car owner is likely to face are related to the engine and transmission. The motor and battery typically come in a sealed system, greatly reducing the risk of water damage from flooding. Thus, making EVs less expensive to maintain over a lifetime as compared to combustion engine cars.

In-cabin experience

Tesla emerged as the favourite among EV shoppers in the US

Peaceful. Relaxing. Controlled. EVs are known for their quiet cabin, spacious interior and immediate acceleration. The absence of engine and transmission noise, roominess and abundance of creature comforts would make one take that coveted road trip to the hills or a family holiday away from the city, adding to the average miles driven on the vehicle. “With the perceived longer range of EVs and potential fuel cost savings, EV owners might be more inclined to take weekend trips or road vacations, boosting their annual mileage,” says Harshvardhan Sharma, Head – Auto retail practice, Nomura.

Longer range

Hyundai Ioniq 6 claims a longer range with 361 miles on offer

Longer range translates to longer uptime. The CDK Global study points out that EVs today offer almost over 200 to 250 miles of range, which coupled with rapid charging capabilities manages to eliminate range anxiety in travellers. This enables EV owners to spend more time on the road in a cost-effective manner. The study notes that nine out of ten EV shoppers agreed that they would purchase EV from a brand that offered longer-range models. “I plan to purchase my EV from a brand that has a longer driving range,” a survey participant said.

Tesla emerged as the favourite among EV shoppers in the US with 49% considering a battery-powered vehicle from the home-grown brand. The brand’s popular Model 3 offers a range of 358 miles while the Model Y offers 330 miles of range. At present, Hyundai’s Ioniq 6 is the only non-luxury model that claims a comparatively longer range with 361 miles on offer.

Environmental consciousness

An EV is a panacea to many environmental concerns. With almost every carmaker rolling out competitive battery-driven models in the market, options are expanding, and awareness is rising. EV owners are trying to ditch other carbon-intensive forms and transportation and instead take on the roads with electric power, leading to an increase in driving. “As EVs become more mainstream and perceptions shift towards their practicality and environmental benefits, driving them might also become more socially acceptable, leading to increased use,” said Sharma. Use of sustainable materials in these vehicles further enhance the environmental factor.

Conclusion

There are several factors contributing to EV shoppers in the US driving more miles on an average versus their ICE counterparts. While unit economics, in-cabin experience and environmental consciousness are some of the major factors, other influencers include changing lifestyle and acceptance of EVs in the mainstream car market. Additionally, government incentives, infrastructural progress and better technology play crucial roles. Newer EVs come with longer range, connected features, faster charging and comfortable seats, making for a good companion for longer drives.