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.
“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.”
“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.
“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.
“I would anticipate that May is probably going to be much lower than March and April,” LaRocca said.
