Range anxiety once deterred US car shoppers from buying EVs. But now, affordability is the bigger obstacle for EV adoption.
So says global consulting firm McKinsey in its latest Mobility Consumer Pulse 2026 Survey. The firm’s analysts note “electrification continues to advance” with “interest in electric vehicles (EVs) steadily rising, and the customer base of potential EV customers broadening to include more mainstream buyers.” McKinsey polled more than 20,000 mobility users across China, Germany, Japan, the United Kingdom, and the United States for the study.
Despite headwinds in the US, the percentage of consumers who expect to buy an EV as their next vehicle rose to 17%, up from 11% in 2023. Meanwhile, the number of those opposed to EVs fell to 30%, down from 34% three years ago. “For many consumers, barriers to EV adoption primarily involve economic and practical considerations, rather than ideological resistance,” the report said.
The biggest drop in obstacles for EV adoption came with range anxiety. Only 20% of consumers said range was an issue in switching from a gas-powered car, compared with 45% three years earlier. Range anxiety, a top concern among those not considering an EV, subsequently fell to 8th overall, down from the number 2 concern just three years ago.
McKinsey credits improving hardware: “The recent increase in battery capacity by OEMs may now be allaying these fears.” The firm expects the trend to reshape competition, noting that “for many OEMs, ADAS [driver assistance software]—not EV range—will be the most important area of competition for customer attention in the coming years.”
But as one obstacle falls, another rises. The report warns that “vehicle costs and charging access remain top of mind for many consumers,” especially in the US.
Affordability is squeezing buyers out of EVs — and cars in general. The survey found 35% of buyers will likely buy a cheaper vehicle with their next purchase, and nearly half (45%) are keeping their current vehicle longer, due to financial issues.
Globally, McKinsey reports that “45 percent say they will consider smaller vehicle categories than originally planned to remain within budget,” while roughly “50 percent of global respondents plan to budget under $40,000 for their vehicle purchase.”
EVs typically cost more than gas-powered equivalents. And with President Trump and the GOP-controlled Congress removing the $7,500 EV tax credit last year, the math for buying an EV is even harder for most Americans.
McKinsey notes that “the average budget of more conservative and cost-constrained customer cohorts may be up to $15,000 lower than that of more affluent early adopters.”
Still, the report offers automakers reason for optimism. Owning an EV is the most decisive factor, with 70% of respondents claiming they will replace their EV with another one. Incidentally, 19% said they would switch to a hybrid, but just 8% said they would go back to a gas powered car.
Data shows EV sales are also slowly recovering in the US. Cox Automotive’s Kelley Blue Book reports US EV sales were up 14.7% in the second quarter compared to Q1. Year over year, a Q2 sales decline of 20.5% was an improvement over Q1, when sales fell 27.3%.
Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
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