Start-up automakers like Lucid and Rivian often make the point that electric vehicle buyers are open to trying new brands. This is quite true in the case of Tesla.
However, the special thing here is that that trend is true for startups, and also true for long-standing, large-scale automobile manufacturers such as Ford, General Motors and Volkswagen.
A series of established car companies are admitting that new electric vehicle products are attracting countless new customers - not customers for their gasoline cars - according to data from the automotive website. car Edmunds.com.
That means electric vehicles are bringing "conquering sales", expanding markets and customer files for all auto manufacturing companies globally. Conquest sales are essentially sales that not only bring in revenue but can also make automakers hope to create new long-term customers.
As Ford, General Motors and Volkswagen all promote electric vehicle production
Of the buyers of the new Ford Mustang Mach-E electric car, nearly 70% are not Ford customers, according to Edmunds.com. For General Motors' Chevrolet brand, this trend is similar. Among buyers of Chevrolet Bolt electric vehicles, 60% were first-time buyers of the Chevrolet brand.
At Volkswagen, a famous car company but its market share is not really as strong as Chevrolet or Ford in the US, this difference is smaller but still noticeable. Among buyers of the ID.4 electric SUV, 72% are not current VW customers, Edmunds.com figures show.
The trend even appears to be similar for the new F-150 Lightning pickup, Ford CEO Jim Farley said in an interview with CNN Business. Of those who put down deposits to buy new electric vehicles, Farley said, 70% to 80% are first-time Ford brand vehicle owners.
So far, sales figures for electric vehicle products are still not too great by the standards of major auto brands. Tesla remains at the top of the best-selling electric car brand rankings.
In the first 9 months of 2021, GM sold about 25.000 Bolt EV and EUV electric vehicles. (Due to the battery recall, General Motors has not sold the Bolt line since the end of August). Ford has sold about 8 electric Mach-Es and Volkswagen has sold 18.000 ID.12.000s.
Some other long-standing car manufacturing brands are competing quite well in the electric vehicle market such as Toyota or even luxury brands such as BMW and Audi are also said to be investing quite a lot in electric vehicles. Toyota is known to be the most popular brand although it currently only accounts for about 10% of the company's revenue.
Acquiring new customers is good for any automaker (and all other businesses). However, the ultimate goal of car companies is still to retain those customers when they need to switch to another vehicle.
Mr. Tyson Jominy, data analyst at J.D. Power said for customers who have already purchased an electric vehicle, it could mean they will go ahead and buy another electric vehicle. “They are still quite loyal to electric vehicles in general,” he said.
Challenges when shifting towards electric vehicle development
However, the “sales-conquering” benefits of owning all-new SUVs won't last forever, J.D.'s Jominy said. Power said. Ultimately, new electric cars will just be newer cars and customers will settle into familiar buying habits. When that time comes, they will only be loyal to their favorite brands.
Not only that, in the future there will be an activity of exchanging old electric vehicles for new ones and thus the rate of new customers will also decrease. The Nissan Leaf is a perfect example of this.
According to Edmunds.com, in 2012, 80% of Leaf buyers were new Nissan customers. In those days, the Leaf was pretty much the only electric car most Americans could buy because Tesla had just started producing the Model S.
Today, Leaf has more competitors and only 50% of its buyers are new customers. The reason is because many customers who buy Leaf electric cars are exchanging old cars for new ones.
Besides, another big challenge is that automakers need to equip other types of electric vehicles for customers who are ready to upgrade, such as a larger, more luxurious car.
Michelle Krebs, an industry analyst with Autotrader, said car buyers, whether they like electric vehicles or not, tend to set their own wants, must-haves, and if the manufacturer doesn't have the features. or that trait will be eliminated immediately.
“SUV buyers will buy SUVs, so will there be another electric SUV?” Ms. Krebs said.
General Motors is about to have more electric car models, but for now, there are no electric cars for sale. The Bolt EV and EUV have been temporarily withdrawn from the market while GM attempts to replace the batteries in Bolts already on the road following a previous battery recall.
“GM has committed to introducing more than 30 new EVs through 2025, leveraging the self-designed Ultium Platform. So we hope Bolt customers will stay with the company as we work through the recall repair process, and continue to find electric vehicles they love that fit their needs well into the future. hybrid,” GM spokesperson Kelly Cusinato said in an email interview with CNN.
However, GM's first and foremost job is still to ensure that customers are satisfied with the electric car they just purchased. Fortunately for GM, Chevrolet Bolt owners interviewed by CNN Business all said they were satisfied with the car itself, despite the occasional major inconvenience from the previous battery recall.
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