More than half (59%) of new-vehicle shoppers fall into the categories of “somewhat likely” or “somewhat unlikely” to purchase or lease a battery electric vehicle (BEV) as their next car, creating a “significant window of opportunity” for future EV sales, according to J.D. Power.
The data was pulled from the inaugural J.D. Power U.S. Electric Vehicle Consideration (EVC) Study that was released this year. According to Stewart Stropp, Senior Director of Automotive Retail at J.D. Power, the projected BEV supply currently outweighs consumer interest.
“And for every new-vehicle shopper seriously considering BEVs, there’s another at the opposite end of the spectrum,” said Stropp. “To avoid a potential ongoing inventory surplus, it behooves manufacturers and retailers to identify why shoppers in the middle ground aren’t completely sold on the technology, and how to get them over the hump into the ‘very likely’ consideration camp.”
The study found that first-hand experience with BEVs plays an important role when it comes to buyer consideration. Forty-six per cent of respondents who said they have owned or leased a BEV in the past are “very likely” to consider another one, while only 6% said they are “very unlikely” to consider buying another BEV as their next vehicle.
It’s also worth mentioning that the study found that consumers who were “very likely” to consider buying a BEV represented nearly three times that of those who have never been in one: 20% versus 7%, respectively. And half of respondents have never been in a BEV, which J.D. Power said highlights a “critical need” for OEMs and retailers to create opportunities for consumers to become more familiar with these types of vehicles.
“Anything stakeholders can do to get more people into electric vehicles, whether it’s experiential events, take-home test drives or other proactive efforts, will help break down the preconceptions people have about BEVs and drive higher consideration,” said Stropp.
Other key findings from the study include vehicle use (eliminating gasoline expense) outweighing or neutralizing range anxiety. The “very likely” consideration is more than three times higher among consumers who take more than 10 road trips per year, compared with those who take none: 34% versus 10%, respectively).
Nearly one-third (30%) of respondents not considering a BEV cite a lack of information as a reason for their lack of consideration, pushing the point that car shoppers need to be better informed about these types of vehicles and the ownership proposition they offer.
The study also found that Tesla tops the list of luxury brands being considered, with more than one-fourth (27%) of car shoppers considering a BEV as being inclined to select a Tesla model as their top choice. Performance is the main driver for their decision. The reasons they offered for selecting another brand include better performance, purchase price, features, functionality, technology or capacity.
Only 4% of respondents among whom Tesla is the top choice said they are only considering a Tesla. “One could argue this indicates that, while Tesla’s appeal is clearly formidable, it’s not absolute and could be displaced by a worthy alternative,” said Stropp.
J.D. Power’s U.S. Electric Vehicle Consideration (EVC) Study is a new industry benchmark for gauging EV shopper consideration. It was conducted between December 2020 and January 2021, and includes 9,030 U.S. new-vehicle intenders in-market to purchase or lease within 12 months.
