McKinsey study highlights strong regional differences in EV uptake

McKinsey’s latest Mobility Consumer Pulse Survey, conducted annually in major automotive markets worldwide since 2016, sheds light on recent market twists, including the impact of Chinese EVs, vehicle features that consumers find most compelling, and the perceived obstacles that make buyers hesitant to transition from an internal combustion engine (ICE) vehicle to an EV.

The 2025 survey is still ongoing and will eventually include respondents from nine countries. Results gathered during the first wave, which included respondents from China, Europe, and the United States, provide some initial insight into the market.

Although EV uptake has increased worldwide, it has always varied by region, McKinsey notes. In 2024, for example, about 50% of vehicles sold in China were EVs. Of these, 28% were battery electric vehicles (BEVs), 15% plug-in hybrid electric vehicles (PHEVs), and 6% extended-range electric vehicles (EREVs). China is the only market where EREVs are now available at scale.

By contrast, EVs accounted for only 21% of vehicles sold in Europe (14% BEV, 7% PHEV). EV sales were lowest in the United States, at 10% (8% BEV, 2% PHEV), with uptake varying vastly by state and region.

Across regions, EV purchase intent is highest among customers who already have experience with an EV. This also includes multicar households that currently have an ICE and a BEV, with the majority indicating they will replace their ICE with a BEV as their next car. This finding contradicts the commonly held assumptions that BEVs are only used as the secondary household car, driven for shorter trips, and that consumers may keep an ICE as backup in their garage forever, McKinsey says.

EV uptake is likely to continue to grow across regions. In China, 45% of respondents state that their next car will be a BEV; this compares with 23% in Europe and 12% in the United States. In a departure from current sales trends, customer intent to purchase a PHEV is higher than intent to buy a BEV in the United States and Europe, and it is almost as high as BEV intent in China. These findings highlight the continued relevance of hybrids in the EV transition.

In the United States, EV sales and consumer interest in EV purchases have remained flat over the past few years, but the results vary significantly by location (by state and by specific location within a state). In states that have adopted the rules of the California Air Resource Board (CARB), for example, 38% of respondents state that their next car will be electric (BEV or PHEV), compared with 25% in non-CARB states.

EV purchase intent is highest in California (above 50%) but is well below 20% in about 25 other states, mostly in the South and Midwest. The contrast between residents of urban and rural areas is equally stark: EV transition sentiment in urban areas (51%) is more than 2.5 times higher than that in rural areas (18%). Purchase intent for hybrid EVs—both plug-in and full hybrids—is higher than that for BEVs. These trends suggest that the overall EV transition in the United States will continue at a slow pace, and ICE and hybrid-electric-vehicle (HEV) technology will remain relevant over the longer term. OEMs should review their portfolios accordingly, McKinsey suggested.