Traditional automakers have historically depended on their esteemed standing and customer faithfulness to uphold their clientele. However, due to the intensifying competition from emerging Electric Vehicle (EV) producers, loyalty to a particular brand is no longer a certainty.
As per a recent survey of 5,000 European shoppers conducted by Adevinta, a top online categorized group and notable participant in the European mobility sector. Their specialized mobility marketplaces incorporate mobile.de (DE), coches.net (ES), and automobile.it (IT), aside from the generalist portals with a solid mobility selection, such as leboncoin (FR) and Marktplaats (NL).
Brand standing remains a vital element in buying decisions. For 45% of European consumers, it stands as the primary consideration when scouting for a fresh vehicle, with nearly one-third (31%) having historically made acquisitions from the same brand.
Nevertheless, the shift to EVs has evened out the field, and research from Adevinta suggests that numerous customers are ready to switch their allegiance to acquire a vehicle that satisfies their requirements. For example, over 25% (28%) are more inclined to procure an EV from a new or unfamiliar brand compared to opting for a petrol or diesel vehicle.
Several crucial aspects commonly noted as obstacles to adoption, such as battery range, affordability, and availability, are motivating consumers to contemplate brands that might not be within their familiarity. To illustrate, nearly 39% of consumers would contemplate purchasing an EV from a new or unfamiliar brand if it outperformed other models in terms of battery range. Over 35% would do the same if it were more cost-effective than other models, and more than 26% would consider purchasing an EV from a new or unfamiliar brand if it could be delivered swiftly.
Ajay Bhatia, CEO of mobile.de and Head of Adevinta’s global mobility portfolio, stated: “In the swiftly evolving EV market, traditional manufacturers must no longer lean solely on brand loyalty to secure their market slice. Hence, in order to remain top-of-mind for a new era of EV purchasers, there’s a necessity to establish trust by addressing concerns centered around critical barriers to adoption, such as cost and battery range.”
From a selection of ten trendy car models,* consumer recognition concerning EVs is relatively low in comparison to petrol or diesel equivalents. For instance, the Volkswagen Golf (52%), BMW 3 Series (39%), and Dacia Sandero (34%) are the most widely identified by participants. Conversely, regarding the EV equivalents, 28% of consumers recognize Volkswagen’s ID.3, 29% are acquainted with BMW’s i4, and just 15% are aware of the Dacia Spring.
With the anticipation of European EV volumes expected to grow by 18% year on year, traditional manufacturers have to compete with an array of increasingly competitive new brands for market presence. Analysis suggests that one in four EVs sold in Europe this year will be made in China.
Nevertheless, establishing a reputation in the European market presents a substantial challenge due to the consumer propensity to connect quality with legacy. For instance, nearly 29% of consumers doubt the reliability or build quality of vehicles produced by new brands.
From a roster of ten brands* comprising of both traditional and new manufacturers, Volkswagen (41%), BMW (40%), and Tesla (27%) are deemed the most dependable or trustworthy by consumers. On the contrary, emerging brands like Polestar (6%), MG (4%), BYD (4%), and Lynk & Co (3%) occupy the lower end of the spectrum.
When polled on which brands** hold the strongest reputation as EV manufacturers, Tesla emerged as the top choice with 48%, followed by Volkswagen and BMW, both at 26%. In contrast, other manufacturers focusing on EVs, such as Polestar and BYD – the leading EV manufacturer globally in 2022 – are considered reputable EV makers by only 11% and 9%, respectively.
*Respondents had to select from the following models: Volkswagen Golf, BMW 3 Series, Dacia Sandero, Tesla Model Y, Porsche 911, BMW i4, Volkswagen ID.3, Porche Taycan, Dacia Spring, MG 4.
**Respondents were asked to choose from the following brands: Volkswagen, BMW, Tesla, Renault, Nissan, Seat, Polestar, MG, BYD, Lynk & Co.
SOURCE: Adevinta
