ENERGY EFFICIENT TRANSPORT
THE OPPORTUNITY FOR EV BRANDS
With the appetite for EVs waning, Mark Carpenter,
UK managing director, Escalent, explains why EV brands need to understand what consumers are and are not ready for
A
ccording to EV-Volumes data, five car manufacturers are responsible for more than
half of all plug-in electric (BEVs and PHEVs) car sales. Tesla dominates the market, but other manufacturers like Mercedes, BMW and Vauxhall continue to expand their range of EVs. While the leader still leads, the question is for
how long? Tesla is fighting to maintain share in an increasingly fragmented market with competition from other manufacturers, including low-cost Chinese brands, offering similar capabilities. Tesla has recently cut the price of its Model Y in several European countries, but with ongoing supply chain disruptions and rising production costs, it’s not sustainable in the long term. Price is an important motivator, but not the only one. EV brands have an opportunity to do much more to woo customers. The market is slowing with the appetite for EVs waning. In Escalent’s recent EVForward Europe 2023 study of 10,000+ consumers, we found that despite most EV car owners being happy with their experience, the EV sector is seen as a ‘work in progress’. What’s concerning is the fact that a significant number of EV buyers are not convinced, with one in four saying they would not buy another EV. Automotive brands will need to attract and convert the current crop of EV owners, as well as car buyers of the future. This is especially true
Although the majority of new car buyers are not really considering sustainability when shopping for their next vehicle, it does influence them
of younger consumers who are often first-time buyers and likely to be more attracted to EVs and new EV brands. EVForward points to how brands can play a bigger role in supporting customers, while becoming a trusted advisor throughout the EV ownership experience.
EV DRIVING RANGE Driving range is the most prominent barrier to buying an EV in 2023, with 16% claiming it’s the top reason for not buying an EV. Yet, people are more realistic about how far they can drive their EVs today compared to previous years. This is particularly true of new car buyers aged 31-40 years, most of whom had an expectation of more than 625km in 2022 before they would consider buying an EV – this is now a more realistic 550km. Buyers also like the idea of having a ‘safety net’
in the form of second petrol cars as backup, which could further stall EV market growth. If this is a key motivator, particularly for longer trips, with 63% claiming that having the option to use petrol when charging is not available is their prime reason for buying, there is a danger that plug-in hybrid (PHEV) is seen as a destination rather than a way point en route to EV adoption. The lack of
visible EV charging infrastructure, with at-home charging highlighted as a worry, is also a concern. While the charging rollout is largely outside of the control of car makers,
26 ENERGY & SUSTAINABILITY SOLUTIONS - Spring 2024
it’s an opportunity for them to provide more support during the sales process to ease buyers’ concerns and help facilitate charger installation – at home and in public spaces.
SUSTAINABILITY PRINCIPLES These days, most of us acknowledge the idea of sustainability, but how far will car buyers go when it comes to putting principles into practice? With 70% of buyers saying they are not yet ready for recyclable materials in visible areas of their new car, and just a third concerned about carbon released in the production process, our study suggests that many buyers are happy to place responsibility for sustainability firmly on the shoulders of the manufacturers. There are some interesting nuances across
different countries and brands, with buyers in Italy and Spain claiming to be more influenced by sustainability principles than those in northern Europe. While some, but not all, premium brand owners claim to be more influenced by sustainability principles, how they want to experience this sustainability varies. Although the majority of new car buyers are
not really considering sustainability when shopping for their next vehicle, it does influence them. Knowing that a manufacturer is being more sustainable increases purchase consideration among 55% of consumers. EV brands will need to understand what consumers are and are not ready for. Being able to recognise and act upon what is acceptable to new car buyers will help minimise the risk of a disconnect between the brand promises and customers’ expectations. Gone are the days when a car purchase was a one-off transaction every few years. It’s now a huge opportunity for brands to look at what is motivating EV buyers today – and tomorrow – and act on it.
Escalent
https://escalent.co/
www.essmag.co.uk
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