According to data from Experian, in January, electric vehicles made up over 7% of all newly registered light vehicles in the US, marking a significant 74% growth compared to the previous year.
However, a considerable number of individuals remain apprehensive about embracing electric vehicles. A recent survey conducted by Verra Mobility, a transportation solutions company, revealed that almost 80% of respondents expressed concerns about “range anxiety.” This term refers to the fear of being unable to locate a charging station or running out of power while traveling.
According to a 2020 AAA report, driving an electric vehicle emerged as the most effective solution to alleviate range anxiety. Out of the 40,000 surveyed EV owners, 77% reported being either less concerned or no longer concerned about range limitations. Alternatively, if investing $40,000 in a Tesla and relying solely on that option seems overly extreme, there is a less precarious alternative: renting an EV.
In Verra’s recent online survey, involving 2,000 US adults aged 25 and older, it was found that 78% of respondents expressed willingness to consider renting an electric vehicle for their upcoming vacations or business trips. This was seen as an opportunity to test the EV experience before making a final purchasing decision. Additionally, 40% of the participants indicated that if cost were not a factor, they would choose to rent an EV instead of a traditional internal combustion engine vehicle.
Steve Lalla, Executive Vice President of Verra, highlighted that drivers prioritize convenient charging options and have apprehensions about vehicle maintenance. In a statement, he emphasized the popularity of a “try before you buy” approach among many drivers in the US, indicating their preference for testing out EVs before making a purchasing decision.
Hertz, the third-largest car rental company, is betting on electric vehicles to boost its position. They have ordered 340,000 EV’s from Tesla, General Motors, and Polestar, aiming to create the largest EV rental fleet in North America. By the end of next year, EVs will make up 25% of Hertz’s fleet, up from the current 10%.
Hertz, the parent company of Dollar and Thrifty, is expecting a significant surge in EV rentals. They anticipate logging nearly 2 million EV rentals by the end of 2023, a fivefold increase compared to 2022. Emphasizing the importance of introducing customers to electric vehicles, Hertz stated that offering an EV “test drive” through their rental service is a crucial step towards wider EV adoption. On the other hand, while Enterprise did not provide specific data on their EV fleet, their research suggests that nearly half of potential customers are open to renting an EV as a way to personally experience it.
EV rentals often have higher costs compared to gas-powered cars, but rental companies are providing discounts and incentives, like partial charge returns. More employers are choosing electric vehicles for business travel to reduce their carbon footprint.
