3 Reasons to Understand EV Ownership in 2025

At J.D. Power, we consider it to be more important than ever to understand EV ownership in 2025. Why? Here's three key reasons.

#1 It's critical to know which EVs are at risk from discontinued incentives.

EV market dynamics are changing and incentives may be discontinued. In the 2024 EVX Ownership Study, tax credits/incentives was the third most frequently cited purchase reason for buying an EV. 

Source: J.D. Power 2024 U.S. Electric Vehicle Experience (EVX) Ownership Study

While it is not the case for every electric vehicle, many automakers have reason for concern. For buyers of Chevrolet, Tesla and Volkswagen vehicles, tax credits/incentives was the number one purchase driver.
Source: J.D. Power 2024 U.S. Electric Vehicle Experience (EVX) Ownership Study

If the tax credit goes away, how will these products best compete for buyers? For those models where the tax credit wasn’t influential, what is attracting buyers to those vehicles? 

#2 Each slice of the EV pie is getting smaller.

With EV market share remaining flat, but many more models entering the marketplace, each automaker has to fight harder to retain their piece of the "EV pie."
Source: J.D. Power 2024 U.S. Electric Vehicle Experience (EVX) Ownership Study and J.D. Power 2025 U.S. Electric Vehicle Experience (EVX) Ownership Study

In January of 2024 there were 52 BEV and 39 PHEV models available in the U.S. market. In January of this year there were 71 BEV and 48 PHEV models available. Consumer options, and competition for loyal customers, is growing exponentially. 

#3 Satisfied owners can provide (much-needed) free marketing.

In 2024, 94% of the EV drivers we surveyed said they would consider another EV for their next vehicle purchase. In the same vein, satisfied EV drivers were the most likely to recommend their vehicle to others. In the more saturated 2025 market, it is increasingly important for automakers to capture these brand advocates and ensure this free marketing goes to their own line-up.

In order to win repeat EV customers and create loyal brand advocates, it's critical to build EVs customers truly want, regardless of incentives or the current environment of competing launches. This lofty goal will require that automakers and other key players understand EV ownership in 2025.