What Will It Take To Make EV Sales Go Through The Roof?
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The pace of global EV sales continues to rise, and yet it would be much quicker if automakers could only figure out how to capture the second wave of EV buyers. Only 10% of drivers have told researchers that they would never, ever consider buying an EV, so what’s holding up the works for the other 90%?
EV Sales: Early Adopters Have Already Adopted
If you don’t own an EV yet, but would like to own one in the future, you probably have some valuable insights to share. Drop a note in the comment thread and let us know what’s holding up the works.
In the meantime, let’s take a look at a new report on EV sales and driver preferences issued yesterday by the global professional services firm Accenture under the title, “Decoding the human mindsets behind EV adoption.”
“EVs have driven extraordinary changes across the automotive industry — but sales are still mostly limited to early adopters,” Accenture summarizes. They advise that automakers cultivate a “deeper life-centric understanding of who the next EV buyers are — and what they really want.”
The centerpiece of the report is a driver survey, in which 57% of those responding indicated that they expect to buy an EV within the next 10 years. In addition, 43% of non-EV drivers expect their next car to be an EV, and 47% indicated that the transition to EVs is inevitable. Only 10% declared that there would never be an EV in their future.
As Accenture sees it, previous years saw an rapid increase in global EV sales due to the interest of early adopters. Now that the first wave has tapped out, the harder task of pulling in latecomers needs to kick in.
“In 2023, nearly 14 million EVs were sold globally. That’s a 35% year-on-year increase, but it’s down from 55% in 2022 and 121% in 2021,” Accenture points out.
How To Increase The Pace Of EV Sales
From a big-picture perspective, that 35% increase in EV sales for 2023 is not too shabby. Wards Intelligence, for example, calculates that global sales of all vehicles in 2023 totaled 92.4 million units, of which 88.8 million were classified as light vehicles. Within that light vehicle set, the increase in sales was just 10.8% from 2022 to 2023.
However, from a business perspective, automakers need to justify their EV programs to investors, and that’s going to be a tough row to hoe until EV sales carve more deeply into the non-EV space.
Based on the results of their driver survey, Accenture advises that EV stakeholders prioritize the same things that motivate any car buyer: reliability, safety, and affordability.
The firm also advises that a “highly personalized and flexible omni-channel sales and marketing approach” is also needed, by which they mean more face time between sellers and buyers. It also needs to be meaningful face time, not a preset sales pitch. Aiming vehicle design and function straight at the mass market would help, too, along with a seamless connection between the EV and the electricity ecosystem.
No, Really, How Can You Increase The Pace Of EV Sales?
“Tomorrow’s mainstream customers…[are] more concerned with reliability, affordability, and how well EVs integrate into their everyday lives. Issues like charging infrastructure, high upfront costs, and potential lifestyle disruptions continue to deter many from making the transition,” Accenture explains.
None of this is particularly surprising. Automakers like GM are beginning to offer seamless EV-integrated products. Another example is Ford, which notes that the overwhelming majority of EV owners prefer to charge up at home. They are aiming to increase EV sales by making it easier for EV owners to install home charging stations.
Automakers are also beginning to improve the public charging experience with lounge-like, comfort stations where drivers can relax. Ford CEO Jim Farley likens it to the early days of the automobile, when drivers appreciated the reassurance of full-service gas stations and restroom facilities, too.
More Than One Way To Attract The Next Wave Of EV Buyers
A significant gender gap is another factor holding back the pace of EV sales, and that’s where things get interesting.
The research firm Escalent, for example, published a new report on EV sales last month, which found that EV “ownership, shopping and awareness are largely male-dominated, with men making up 71% of owners and 74% of shoppers and typically conducting more exploratory research throughout the purchasing process.”
On the plus side, Escalant found the women tend to focus on actionable research. That should motivate automakers and dealerships to adopt the mantle of a “trusted source of clear, reliable information for women throughout the BEV buying process,” Escalent concludes.
Along those lines, automotive stakeholders are beginning to recognize that EV batteries enable a much more flexible use of interior space. That can attract self-employed drivers and parents — primarily, mothers — who appreciate a multi-use vehicle that doubles as a safe, convenient, secure work and family place. The advantage of an electric vehicle during weather emergencies and power outages is another selling point.
Unplugging The Rental Bottleneck
Rental housing is yet another obstacle for EV sales. Aside from any limitations on physical space, property owners generally don’t want to make the up-front investment in EV charging stations. Neither do tenants, especially those who move frequently. According to the latest figures from the Bureau of Labor Statistics, there are 44 million rental households in the US. The most common lease lasts for one year and many are just month-to-month. Accordingly, surveys show the average length of stay is just two years or so.
To complicate matters further, in recent years average rents have risen to the point where many low- and middle-income families simply don’t have room in their budget to invest in zero emission mobility technology, a trend that is likely to continue.
Still, there is plenty of room for EV chargers in the premium and near-premium Class A and B rental market, where charging stations can be seen through the same lens as onsite fitness rooms and other amenities.
Earlier today, the research firm Park Associates released a survey indicating that the wave is gathering steam among Class A and B rental property owners. They found that “32% of multifamily owners and operators plan on deploying, upgrading, or replacing EV charging stations in at least one of their properties within the next 12 months.”
Park advises that implementation can be a challenge, with connectivity and availability being two main issues leading to tenant dissatisfaction. EV charging stakeholders are beginning to develop solutions for that as well.
Last month CleanTechnica took note of a firm called 3V Infrastructure, which has come up with a charging-as-a-service model for multi-family dwellings of 20 units or more. It involves no up-front cost to the property owner for installation. 3V also takes care of operating, administering, and maintaining the charging stations.
Of course, if US automakers are really serious about boosting the rate of EV sales and closing the gender gap, too, they might want to consider investing in EV-enabled affordable rentals for women heads of households. Dream on, Klingon…
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Photo (cropped): The shocking truth: To increase the pace of EV sales, auto makers need to focus on that which all car buyers value: safety, value, and reliability (all-electric Explorer courtesy of Ford Motor Company).
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