Wednesday, June 19, 2024
NewsBuyers who Move to Electric Vehicles don’t Go Back

Buyers who Move to Electric Vehicles don’t Go Back

People who buy electric vehicles in the US are likely to buy a second one.

  • According to US registration data, most EV drivers choose another EV when replacing their vehicle

  • Tesla enjoys very high customer loyalty, with 91% of owners returning for their next vehicle

  • The US is still behind Asia and Europe in terms of EV adoption, but it is catching up

More and more people are turning to EVs when choosing their next vehicle and according to registration data in the United States, this choice is usually definitive.

Indeed, 65.3% (or about two-thirds) of the households which already owned an electric vehicle chose another EV when buying a new car in 2022.

This means that most people who live with an electric vehicle are willing to continue doing so for at least a number of years. This proportion is also increasing quickly since only 48% of EV-owning households who bought another car in 2021 chose an EV.

The United States is still behind Asia and Europe in terms of electric vehicle adoption, but recent increases in the proportion of EV sales show that it is catching up.

In July 2022, 5.8% of every new vehicle registered in the United States was powered by electricity, compared to only 3.4% in July 2021.

This is due to both the increasing variety of the EV market and the changing social perceptions about electric vehicles.

In July 2022, 45 different EV models were on the market compared to only 27 a year earlier, which means there are now more options to choose from in order to attract different customers.

This trend will continue to increase in the coming years, with a large number of new electric models being promised by every automaker.

One automaker that could suffer from the industry’s shift to electric power is Tesla since it currently enjoys an almost monopoly in the EV market.

Indeed, Tesla had an 81% market share in the US EV space in the first half of 2019, and the Model Y and the Model 3 are still the two best-selling electric vehicles in the world.

With the arrival of many new competitors from established brands as well as from start-up automakers, the EV market is getting more and more diverse and Tesla’s share of the pie dropped to less than 60% in 2022.

It is interesting to note that this reduction in market share is due to new EV buyers choosing competing models rather than Tesla owners abandoning the brand.

Indeed, Tesla is the automaker with the most loyal owners by far, with 91% of them choosing another Tesla when the time to change vehicles has come.

Source: Axios


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