A closer look at sales and trade-in data through November for three mainstream EVs (Ford Mustang Mach E, Hyundai Ionic 5 and Kia EV6) shows that they’re not just redefining transportation. I understand this. EVs are causing a major shift in consumer perceptions of the major automakers that build EVs, which could create a competitive edge in the years to come. The trends driving this change include:
1. EVs are attracting more luxury owners. Auto industry maxim says that once a buyer buys luxury, they never go back. It is evolving to be placed. Trade-in data for these three EVs shows that these brands capture an impressive share of luxury trade-ins compared to their stable peers.
2. EV is winning the conquest from other brands. Even more exciting than luring luxury car buyers to non-luxury brands is the fact that these cars are attracting owners of other brands. brand. This is not easy. One of the reasons leasing was invented is to encourage repeat business. The cost of retaining buyers is much lower than the cost of finding new buyers, and these EVs are naturally attracting new buyers. This is an advantage that cannot be underestimated.
3. EV accounts for the highest amount. New car prices have skyrocketed significantly over the past year due to supply shortages, but demand for EVs remains high even as gasoline prices soften. It’s no surprise that Hyundai and Kia’s EVs are priced higher than the brand’s average, given their lineups of already fuel-efficient small cars. But it’s worth noting that Ford, known for its big pickup trucks and SUVs, is pulling more money for a vehicle that’s one of the smallest footprints in its lineup.
4. EVs are attractive to young shoppers. EVs are more expensive, but that doesn’t necessarily mean they have older buyers. By his first three quarters of 2022, 44% of his EV buyers were under the age of 45. In comparison, his 36% of all new car buyers were in this age group. This means automakers will buy more vehicles in the future.