In these uncertain times, US consumers are embracing the familiar: gas-guzzling cars, trucks, and SUVs.
That’s according to findings from the auto section of KPMG’s annual American Perspectives survey.
Based on responses from 2,500 adults across the country, the survey suggested an “increasing preference for standard gas-powered vehicles.” Asked about their preference between internal combustion engine vehicles, hybrids, and EVs with the same price tags, 42% picked gas-powered cars—up from 38% last year. At the same time, interest in EVs fell from 21% in 2024 to 16% in 2025. Similar to last year, about one-third of respondents selected hybrids as their preference.
Lenny LaRocca, US auto sector leader for KPMG, told Tech Brew the responses suggest that the hype around EVs is cooling down.
“I think reality is setting in at this point,” he said. “Consumers are feeling more comfortable with gas engine vehicles. The EV charging infrastructure is still a big concern, range is still a big concern.”
Automakers are taking their cues from these consumer choices, even as they continue to invest in electrification. Recent developments indicate the industry is further retreating from its once-ambitious plans to go electric in the coming years.
The Wall Street Journal reported Wednesday that Ford is again pulling back on its electrification plans by letting Nissan use some of its unused EV battery manufacturing capacity in the US. And Japanese automaker Honda recently said it would reduce by 30% its planned investments in EVs by 2030 and focus more on hybrids, Reuters reported.
“You’re actually seeing more people look at impairments around their assets, because [of] EV volumes not reaching the level expected when they were making those investments,” LaRocca said, noting the hundreds of billions of dollars in investments in electrification the auto industry has made.
“Also, the profitability of EVs continues to be a struggle for traditional OEMs. How do you drive profitability on lower volumes, in an environment where you’ve made this big investment? It’s not surprising that they’d pivot back to where they make money,” he said.
In Q1, EV sales of 300,000 units represented 11.4% YoY growth, according to Kelley Blue Book data. EVs captured 7.5% of the total new-vehicle market, up from 7% a year earlier.
But analysts have warned that the market may not maintain its momentum as the year progresses, thanks to the Trump administration’s tariffs and EV sales incentives on the chopping block in Washington, DC.
“The year certainly started strong, but the road ahead will be anything but smooth,” Cox Automotive Analyst Stephanie Valdez Streaty said in a statement last month.
Meanwhile, the KPMG survey found that tariffs are having a significant effect on consumers’ auto purchase decisions. Of those who’re in the market for a car, 43% said “they will delay their purchase of a new or used vehicle until they know the impact of new tariffs on vehicle prices.” Another 17% planned to buy sooner in an attempt to preempt expected price increases.
Consumers flocked to car dealer lots in March and April, which analysts attributed to buyers trying to get ahead of anticipated price hikes from tariffs.
“I would anticipate that May is probably going to be much lower than March and April,” LaRocca said.
This report was originally published by Tech Brew.
