While EV loyalty rates among luxury brands have seen an upward trend, legacy automakers face challenges in retaining customers, particularly when Tesla’s influence is discounted.
Excluding Tesla, mainstream brand EV households show a loyalty rate of 52.1%.
A consumer survey by S&P Global Mobility reports a decline in the consideration for purchasing EVs, dropping to 52% from 81% in 2021.
Among mainstream brands, Nissan leads in EV loyalty at 63.2%, with Chevrolet following at 60.6%.
According to a report by S&P Global, the auto industry is witnessing varied loyalty rates when it comes to electric vehicles (EVs). On a positive note, overall fuel-type loyalty for EVs across both luxury and mainstream brands has surged in the past three years. However, when Tesla’s dominant loyalty figures are set aside, the remaining industry sees a considerable dip in loyalty percentages. This might indicate a challenge for traditional automakers in establishing and maintaining customer allegiance to electric cars.
When Tesla is excluded from the data, mainstream brand EV households demonstrate a loyalty rate of 52.1% to the electric fuel type, irrespective of the subsequent brand chosen. Tom Libby from S&P Global Mobility highlighted the significant investments OEMs are making in EV development. Thus, a shift of EV owners back to internal combustion engines (ICE) is an undesirable outcome for them.
The data reveals another concern: nearly half of the non-Tesla EV households, upon acquiring a new EV, opt for an ICE vehicle in their next purchase. Factors impacting such decisions could stem from a reduced inclination to buy an EV. S&P Global Mobility’s recent survey showcased a decline in the consideration for EV purchases, down from 81% in 2021 to 52%. Top reasons cited by consumers included pricing, infrastructure, and range concerns.
Brands like Nissan and Chevrolet stand out in the mainstream market, boasting EV loyalty rates of 63.2% and 60.6% respectively. However, individual model performances showed variance. For example, only 37.3% of Ford Mustang Mach-E households remained loyal to EVs.
In the luxury segment, the EV loyalty rate consistently surpassed 70% in recent quarters. But, with Tesla’s influence omitted (+80%), the data suggests that some luxury brands grapple with keeping customers engaged. As the industry evolves and more EV options emerge, legacy automakers must strategize effectively to bolster EV loyalty.