More car buyers are leaning toward purchasing an electric vehicle over a gas powered one, with 64 percent of consumers expected to choose an EV for their next vehicle, according to a report published by IT service provider TATA Consultancy Services (TCS) in January.

More than 1,300 respondents, including charging infrastructure providers, fleet adopters and consumers across several countries participated in the survey.

Coupled with a recent study suggesting EV batteries could last an additional 40 percent longer than originally thought, EVs may overtake gas powered vehicles on roads across the globe.

The TCS Future-Ready eMobility Study 2025 found that while 60 percent of consumers said charging infrastructure was a major challenge, 56 percent were ready to pay up to $40,000 for an EV.

In addition, 72 percent of U.S. consumers suggested they were likely or very likely to purchase an EV as their next vehicle.

Sustainability and lower operational costs were key factors driving EV adoption.

Though “environmental sustainability” was a key reason for switching to an EV, the environmental benefits did not match the expectations of many respondents, the survey found.

Nearly 48 percent said EVs increase the overall carbon output just as much as they reduce it, with 10 percent even saying EV adoption negatively impacts the environment.

Reducing operational costs was the primary motivation for a sizable percentage of commercial fleets (53 percent). Fleet adopters were willing to pay a premium for EVs than for traditional internal combustion engine (ICE) vehicles.

Despite the reduced expense for maintenance and operation, significant challenges remain.

While 74 percent of EV manufacturers said the lack of appropriate charging infrastructure remains the biggest obstacle limiting growth in the EV market, 55 percent have already begun investing in innovation for battery technology advancements.

Nearly 78 percent are making investments to reduce vehicle costs to cater to growing demand for EVs.

Battery Life Concern

Though the cost of batteries has declined significantly, batteries still account for almost a third of the price of a new EV.

The TSC survey indicates that 90 percent of manufacturers believe that improvements in battery technology will enhance range and charging speed.

Forty-one percent of consumers said that an acceptable EV range on a single charge is 200-300 miles, followed by 31 percent respondents who felt 300-400 miles was acceptable.

Though EV charging stations and distance remain an issue, a new study out of Stanford University found that EV batteries may last up to 40 percent longer than originally thought. The Stanford researchers found consumers’ actual driving habits benefit batteries more than the steady use simulated in almost all laboratory tests of new battery designs.

In the past, battery scientists and engineers tested batteries in labs using a constant rate of discharge followed by recharging. The cycle is continuously repeated to determine the life expectancy of a battery. It’s not the best way to evaluate the life expectancy of EV batteries, especially for people who own EVs for everyday commuting, the study found.

“To our surprise, real driving with frequent acceleration, braking that charges the batteries a bit, stopping to pop into a store, and letting the batteries rest for hours at a time, helps batteries last longer than we had thought based on industry standard lab tests,” said Simona Onori, senior author and an associate professor of energy science and engineering at the school.

The study found cycle aging is much more important than time-induced aging for commercial EVs like buses and delivery vans that are almost always in use or being recharged, one researcher noted.

The study identified an average discharge rate sweet spot for balancing time aging and cycle aging for the commercial battery they tested.

Researchers said car makers could update their EV battery management software to take advantage of the new findings and to maximize battery longevity under real-world conditions.

Costs of Owning EVs

Each year, the American Automobile Association (AAA) analyzes the cost of owning and operating a vehicle in the U.S.

The Your Driving Cost (YDC) study published in September 2024 indicates the total cost to own and operate a new vehicle is $12,297 annually, an increase of $115 from 2023. The analysis showed that EVs have the second-highest total ownership costs due to depreciation, purchase prices and finance charges.

EVs have the lowest fuel cost of any vehicle type, based on a national average electricity price of 15.9 cents per kilowatt hour (kWh and the lowest maintenance costs.

Insuring EVs still costs more than gas powered vehicles. EV insurance policies typically cost 23 percent higher, a 2025 LendingTree report found.

It found that insurance premiums for electric cars made by legacy manufacturers that have been around a long time cost 25 percent less than insurance premiums for cars manufactured by EV-only companies in 2025.

When it comes to claims frequency, Mitchell’s 2024 Insights report indicated claims frequency for collision-damaged, repairable battery electric vehicles (BEVs) increased to 2.71 percent in the U.S., a year-over-year increase of 38 percent.

Total loss frequency for BEVs increased to 10.2 percent in 2024, an increase of 2.2 percent from the year prior.

The increase was commensurate with increases overall, as vehicle values continued to decline and catastrophic claims activity increased in the second half of the year, Mitchell reported.

Average claims severity for repairable BEVs was $6,236 in the U.S. in 2024, a year-over-year decrease of 3 percent.

Mild hybrids (combining an ICE with a small electric battery) and plug-in hybrids (which include a secondary ICE but rely on a larger, high-voltage battery as the primary propulsion source) had an average severity of $4,726 in the U.S.

In comparison, repairable ICE-powered automobiles had the lowest average severity of all powertrains in 2024 at $5,066 in the U.S.

Analysis of newer ICE vehicles—which are similar to electrified alternatives in their complexity and cost to repair—average severity was much closer to that of BEVs and plug-in hybrids: $6,127 in the U.S.

EV Fire Hazards

As EVs take over the road, the risks associated with them become more evident.

Fires sparked by the lithium batteries must be handled carefully, requiring additional training for emergency personnel.

The Idaho National Laboratory (INL) has been studying fire risk associated with EV batteries.

EVs in salvage yards must be spaced feet away from other vehicles due to the potential for fires to reignite.

The INL has also studied flood damage vehicles at the request of the National Highway Transportation Safety Administration to evaluate how saltwater impacts lithium batteries, since the corrosion resulting from submerged vehicles can spark a fire.

Despite their higher costs and risks that have yet to be fully evaluated, there is no doubt consumers are opting for EVs over gas-powered vehicle options.

Mark Golden, Stanford University, contributed to this article. ScienceDaily. Retrieved February 7, 2025 from www.sciencedaily.com/releases/2024/12/241209122933.htm