A Shift In Demand: Study Shows American Families Want Affordable Three-Row Electric SUVs

A new study has unveiled a significant shift in consumer preferences that could reshape the electric vehicle (EV) market: American families are eagerly awaiting affordable three-row electric SUVs and crossovers.

Rising Demand for Affordable Electric SUVs

According to AutoPacific’s 2024 Future Vehicle Planner study, which surveyed over 14,000 prospective vehicle buyers, nearly half of all three-row SUV shoppers would consider an electric option for their next purchase.

The findings reveal a compelling market opportunity, especially considering that 8% of surveyed buyers are actively planning to purchase an electric three-row vehicle – a noteworthy percentage given the limited options currently available. AutoPacific predicts this segment will experience explosive growth, projecting sales to quadruple from under 100,000 units in 2024 to around 400,000 units by 2029.

Interestingly, brand loyalty appears less important in this emerging segment. Robby DeGraff, Manager of Product and Consumer Insights at AutoPacific, notes that “the competition is fiercely fierce, and this notion of brand loyalty is not as relevant when cross-shopping. Oftentimes it really does come down to which vehicle has the hottest features and tech a consumer can get their hands on right now.”

Market Opportunity for Electric SUVs

However, there’s a significant disconnect between consumer desires and current market offerings. While 59% of potential buyers are looking to spend less than $50,000, most available options far exceed this price point.

Currently, only seven three-row electric SUVs are available in the market, including the Volvo EX90, Tesla Model X, Rivian R1S, and Kia EV9. Among these, only the Kia EV9 and Mercedes-Benz EQB approach the desired price range, starting in the mid-$50,000s.

“All-electric three-row SUVs and crossovers are set to become one of the most important growth segments in the EV space,” explains Ed Kim, AutoPacific’s president and chief analyst. “There is a perfect storm of life stage needs and EV acceptance that will power consumer interest and sales in this rapidly emerging space.”

Target Buyer Profile

The study paints a clear picture of the target buyer: typically a married Millennial mother living in suburban single-family housing, driving less than 30 miles daily. These consumers are technologically savvy, environmentally conscious, and seeking vehicles that combine family practicality with modern amenities. They desire features such as wireless charging pads, heated and ventilated seats, hands-free power liftgates, and second-row captain’s chairs.

New Models Coming Soon

More automakers are recognizing this opportunity. Several new entries are expected to join the market, including the Cadillac Escalade IQ, Lucid Gravity, and Hyundai IONIQ 9. However, many of these upcoming vehicles are positioned in the luxury segment, leaving a significant gap in the affordable market space.

The timing of this market shift coincides with broader industry changes. AutoPacific forecasts that fully-electric SUVs and crossovers will more than double their market share from 5.8% in 2024 to over 13% by 2029. This growth trajectory suggests that manufacturers who can deliver affordable three-row electric options may gain a significant competitive advantage.

Read More: EV Ownership Soars: Survey Finds 92% Of Drivers Plan To Stick With An EV

As the automotive industry continues its electric transformation, the message from consumers is clear: there’s a growing demand for practical, affordable EVs that can accommodate larger families.

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