#ev consumer sentiments

Unlocking Behaviour Of Electric Vehicle Owners

Electric Vehicle - Opportunities For EV Marketers

Mapping the global adoption of electric two-wheelers, barriers, consumer preferences and expectations.

A million-dollar question today is how soon the world will shift to electrified transportation and how the competitive dynamics in the global automobile market will change as a result. Scientists, policymakers, and industry experts around the world have been advocating for the electrification of road transportation as a strategy to reduce dependency on oil, CO2 emissions, and urban air pollution. However, electric four-wheelers (E4Ws) has their own set of challenges, as a result, electric two-wheelers (E2Ws) such as e-bikes, e-scooters, and e-motorcycles may offer more immediate opportunities for electrification of road transport, particularly in urban areas.

As per the news website Globe Newswire, the market size for global electric scooters and motorcycles is expected to grow at a CAGR of 32.5% during the forecast period 2021 to 2030.

Furthermore, innovators are constantly introducing new technologies and business models while upgrading existing ones, clearly reviving the market for small-format EVs.

So, is the global EV revolution primarily based on two wheels?

To better understand this, Borderless Access investigated global trends for small-format EVs, existing and potential owners' preferences and perceptions, influencers, brand expectations, opportunities for brands and more.

Environmental Concern- A major driver to adoption

Environmental concerns and cost efficiency are the top reasons for considering electric 2-wheelers.

Two-wheeler EVs though restricted by range on a single charge but with the advantages of quick acceleration, ease of maintenance, and cost efficiency makes them a preferred choice over conventional two-wheelers and even electric cars.

Charging Infrastructure - A major challenge in the adoption of Electric 2-wheelers

Despite all the cost and maintenance perks, there are still a few major challenges in EV adoption.

Expectedly, the lack of proper charging infrastructure is a primary challenge pointed out both by the users and intenders of 2-wheeler EVs.

Few of these concerns have been shared by electric car owners and intenders as well in this report.

Consumers have expressed high range anxiety as a result of long charging hours, making them hesitant to choose an EV vehicle for long-distance runs. When compared to the distance a petrol/diesel vehicle can cover with a single filling, EVs can only travel a limited distance on a single charge.

The increasing adoption of E2Ws for short commutes, rising environmental concerns, and increased investments by start-up’s and established two-wheeler brands in this micro-mobility space are all contributing to the market's growth.

The game changers - Opportunities for marketers

Similar to our findings in the opportunities for marketers section in this electric cars report, existing consumers of electric 2-wheelers turn out to be the most significant salesforce for electric 2-wheeler brands.

With EVs, there exist so many apprehensions, that a potential buyer must be certain before proceeding to make an investment. In this case, intenders rely heavily on the recommendations of existing owners or users, that is readily available within their social circles and are heavily influenced by ‘social media and digital ads’, that are extremely targeted and personalized for increased impact for this niche category.

Government Schemes- Another major driver to adoption

33% of the Intenders believe that better federal incentives can accelerate the E2W adoption rate.

The opportunity and market penetration of E2Ws also depend on the government schemes and policies. They can play an important role in sustainable urban mobility systems and addressing climate change.

A range of policy measures, regulatory, planning, economic and communicative instruments can be used to promote the purchase and use of E2Ws. Some of these measures can include low-emission zones, tax rebates, reforming the legal framework, urban planning to increase the attractiveness of two-wheelers and implementing information and incentives for consumers.

The Future seems bright but can be brighter

In the economic realm, electrification of transport is a key strategy to reduce oil consumption and CO2 emissions.

E2Ws have emerged as the ideal choice to start with for EV play as metros and cities would be the early adopters of small-format EVs. Whether E2Ws can make a noteworthy contribution to the electrification of road transportation depends on their techno-economic, environmental, and social performance relative to competing modes of transportation. The key factors propelling the adoption are innovative battery technologies, improving ride performance and design specifications, and enhancing charging infrastructure. In addition, it also requires minimal maintenance as compared to internal combustion 2-wheelers, and growing demand for effective commuting options, which are boosting the growth of the market.

Imagine people widely using smartphones and laptops in the 1980s, colour TVs in the 1950s, or motor cars in the early 1900s. These technologies were regarded as futuristic concepts at first, but eventually became the way of life.

Similarly, the idea of operating a vehicle using electricity was conceived in the 19th century. Unfortunately, the concept did not progress beyond just being an amusement or as they say a parlour trick—“Look! No horse or ox, yet it moves!’’. Yet, after several ups and downs, when electric vehicles (EVs) subsequently entered the automobile market as an alternative to internal combustion engine vehicles (ICEVs), they failed to penetrate the market due to multiple reasons.

With rising fuel prices and environmental concerns over the last few years, the automobile industry witnessed the return of EVs (electric vehicles) by new entrants such as Tesla painting a unique picture for the automobile sector with their high-performance EVs that use advanced technology.

This led to a disruption in the automobile sector causing dominant automobile brands to rethink their strategy and evolve. But the big question is, has the industry and brands been able to address the consumer concerns associated with EV adoption?

Hence, Borderless Access conducted a study across 13 markets to unlock the evolving behaviour, brand preferences, and factors influencing the attitudes and perceptions of EV owners. The insights here would also highlight the opportunities for brand marketers and how they can help drive EV adoption to gain a bigger market share for their brand.

 EVs are now more than just a “cleaner vehicle’’

EVs have always been a smart environmental choice, and it is one of the top reasons for existing EV owners to choose an EV over a fuel guzzler, and a sizable proportion of respondents are considering purchasing one, with 67% stating that they believe faster EV adoption will help slow down global warming.

NOTE: Each bar on the graphs represents global data of the associated survey question.

Another common reason for owning an EV is its low operating cost, which is a significant purchase factor for a large number of existing EVs.

It is common knowledge among EV enthusiasts that EVs are more economical to operate and maintain than ICEVs. EV sceptics, on the other hand, will point to the premium pricing of many EVs. So, are EVs truly less expensive to own in the long run?

EVs are not only environmentally friendly, existing owners find EVs to be more comfortable with better ride quality and fast acceleration.

EV owners demand better-charging infrastructure

Among the factors influencing EV satisfaction, range—the distance the vehicle can travel on a single charge—is crucial.

Access to efficient charging stations is not only a concern for potential EV buyers, but it also has an impact on the level of satisfaction of existing owners.

NOTE: Each bar on the graphs represents global data of the associated survey question.

Charging infrastructure remains a paramount concern due to inadequate number of charging stations and long charging times causing range anxiety, influencing the purchase decisions of consumers.

36% of EV owners will consider an upgraded version only if it offers more drive range while 49% of the potential consumers will make a purchase decision based on the range offered.

A majority of EV owners also own a fuel-powered car due to the concerns stated earlier, but, does that imply that consumers are more likely to use their ICEV in case of an emergency?

Possibly, yes.

Type of cars owned and brand preferences

Sedans followed by SUVs are the popular choice of EV’s owned by consumers.

When it comes to preferred brands, Tesla, the brand that more or less disrupted the EV market segment, is not at the top of the list. It is not surprising at all. Tesla offers a greater driving range, more power, and incredible acceleration for an EV, but it comes with a premium price due to its broad differentiation strategy. Though Tesla has rolled out its low-priced range EVs, there are now other established and new brands that are luring potential buyers with their high-performance and feature-rich EVs at better price points.

NOTE: Each bar on the graphs represents global data of the associated survey question.

Opportunity for EV Marketers

It is true that the movement towards cleaner vehicles has been a driving force in reshaping the EV market, and word-of-mouth has played a significant role.

NOTE: Each bar on the graphs represents global data of the associated survey question.

While making an expensive purchase, buyers mostly rely on the opinion of existing owners or users. In the case of EVs, there are already several concerns about cost and convenience, hence, real-time feedback from friends and family appears reliable. This gives brand marketers a great indirect marketing and sales team in the form of existing owners (95%) who are inclined to encourage non-EV owners to switch to electric vehicles. However, if the product does not meet the needs of the existing owners or creates a negative experience, then this can work against the brand, hence it's important for marketers to create fantastic experiences for their consumers at every touchpoint.

Almost at par with word of mouth, the next big medium driving awareness and influencing the purchase decisions are ‘social media and digital ads’. A compelling ad instigates the thought of considering the product and then a potential buyer goes to peers for recommendations and existing consumers for feedback. Social and digital media has played a crucial role in promoting EVs as a cleaner alternative and marketers have well-used this agenda to place the product.

Automobile review sites have been another excellent way to get more mind share.

Not surprisingly, ATL mediums—TV and Print—have been ranked low as a purchase influencer for EV’s due to its niche segmentation and TG that requires targeted BTL marketing avenues to create AIDA (Awareness, Interest, Desire, Action) for influencing consumer purchase decisions.

Future - Will EVs take over the automobile industry?

EVs do have a promising future. Consumers are more likely than ever to consider purchasing an EV, and sales could skyrocket.

However, there is still a long way to go before witnessing a complete shift to electric vehicles. Manufacturers are attempting to address concerns about charging infrastructure and mileage. Charging infrastructure in some markets has certainly improved in recent years, which has been critical in the positive shift in EV adoption.

55% of the potential buyers think that the improvement rate of charging infrastructure is slow which consequently may impact the adoption rate.

The government, too, can play an important role in promoting EVs and boosting the adoption rate. Federal incentives are essentially rewards for people who make an effort to clean up the environment.

For 56% of the existing EV owners, government subsidies played a significant role in their purchase decision. Interestingly, 42% of the intenders feel that the current incentive scheme should be improved to encourage them to make a purchase.

Collaboration between local governments and businesses can aid in determining the best strategy for EV charging station locations. By ensuring that the appropriate charging infrastructure is in place, one can ensure that their and the public's money is being spent wisely, facilitating the increased uptake of EVs.

Conclusion

To address raging environmental concerns and fluctuating fuel prices, the world appears ready to transition to electric vehicles. The environment is not the only advantage of EVs. They are also cost-effective to operate and maintain. Nevertheless, the path to complete transition has several impediments.

The increasing demand for EVs is an opportunity to invest in EV infrastructure and consumer engagement. The top reasons for slow EV adoption are poor drive range due to limited battery capacity, the cost versus benefit, and lack of adequate charging infrastructure. If these concerns are not addressed in a timely and appropriate manner, they can hurt potential consumers' purchase decisions.

Not just the potential of EV adoption, but the loyalty of the existing owners will be determined by how well consumer concerns other than environmental impact are addressed and how brands create a positive experience for them.

Imagine people widely using smartphones and laptops in the 1980s, colour TVs in the 1950s, or motor cars in the early 1900s. These technologies were regarded as futuristic concepts at first, but eventually became the way of life.

Similarly, the idea of operating a vehicle using electricity was conceived in the 19th century. Unfortunately, the concept did not progress beyond just being an amusement or as they say a parlour trick—“Look! No horse or ox, yet it moves!’’. Yet, after several ups and downs, when electric vehicles (EVs) subsequently entered the automobile market as an alternative to internal combustion engine vehicles (ICEVs), they failed to penetrate the market due to multiple reasons.

With rising fuel prices and environmental concerns over the last few years, the automobile industry witnessed the return of EVs (electric vehicles) by new entrants such as Tesla painting a unique picture for the automobile sector with their high-performance EVs that use advanced technology.

This led to a disruption in the automobile sector causing dominant automobile brands to rethink their strategy and evolve. But the big question is, has the industry and brands been able to address the consumer concerns associated with EV adoption?

Hence, BorderlessAccess conducted a study across 13 markets to unlock the evolving behaviour, brand preferences, and factors influencing the attitudes and perceptions of EV owners. The insights here would also highlight the opportunities for brand marketers and how can they help drive EV adoption to gain a bigger market share for their brand.

EVs are now more than just a “cleaner vehicle’’

EVs have always been a smart environmental choice, and it is one of the top reasons for existing EV owners to choose an EV over a fuel guzzler, and a sizable proportion of respondents are considering purchasing one, with 67% stating that they believe faster EV adoption will help slow down global warming.

Another common reason for owning an EV is its low operating cost, which is a significant purchase factor for a large number of existing EVs.

It is common knowledge among EV enthusiasts that EVs are more economical to operate and maintain than ICEVs. EV sceptics, on the other hand, will point to the premium pricing of many EVs. So, are EVs truly less expensive to own in the long run?

EVs are not only environmentally friendly, but existing owners also find EVs to be more comfortable with better ride quality and fast acceleration.

EV owners demand better-charging infrastructure

Among the factors influencing EV satisfaction, range—the distance the vehicle can travel on a single charge—is crucial.

Access to efficient charging stations is not only a concern for potential EV buyers, but it also has an impact on the level of satisfaction of existing owners.

Charging infrastructure remains a paramount concern due to the inadequate number of charging stations and long charging times causing range anxiety, influencing the purchase decisions of consumers.

36% of EV owners will consider an upgraded version only if it offers more drive range while 49% of the potential consumers will make a purchase decision based on the range offered.

A majority of EV owners also own a fuel-powered car due to the concerns stated earlier, but, does that imply that consumers are more likely to use their ICEV in case of an emergency?

Possibly, yes.

Type of cars owned and brand preferences

Sedans followed by SUVs are the popular choice of EV’s owned by consumers.

When it comes to preferred brands, Tesla, the brand that more or less disrupted the EV market segment, is not at the top of the list. It is not surprising at all. Tesla offers a greater driving range, more power, and incredible acceleration for an EV, but it comes with a premium price due to its broad differentiation strategy. Though Tesla has rolled out its low-priced range EVs, there are now other established and new brands that are luring potential buyers with their high-performance and feature-rich EVs at better price points.

Opportunity for EV Marketers

It is true that the movement towards cleaner vehicles has been a driving force in reshaping the EV market, and word-of-mouth has played a significant role.

While making an expensive purchase, buyers mostly rely on the opinion of existing owners or users. In the case of EVs, there are already several concerns about cost and convenience, hence, real-time feedback from friends and family appears reliable. This gives brand marketers a great indirect marketing and sales team in the form of existing owners (95%) who are inclined to encourage non-EV owners to switch to electric vehicles. However, if the product does not meet the needs of the existing owners or creates a negative experience, then this can work against the brand, hence it's important for marketers to create fantastic experiences for their consumers at every touchpoint.

Almost at par with word of mouth, the next big medium driving awareness and influencing purchase decisions are ‘social media and digital ads’. A compelling ad instigates the thought of considering the product and then a potential buyer goes to peers for recommendations and existing consumers for feedback. Social and digital media has played a crucial role in promoting EVs as a cleaner alternative and marketers have well-used this agenda to place the product.

Automobile review sites have been another excellent way to get more mind share.

Not surprisingly, ATL mediums—TV and Print—have been ranked low as a purchase influencer for EV’s due to its niche segmentation and TG that requires targeted BTL marketing avenues to create AIDA (Awareness, Interest, Desire, Action) for influencing consumer purchase decisions.

Future - Will EVs take over the automobile industry?

EVs do have a promising future. Consumers are more likely than ever to consider purchasing an EV, and sales could skyrocket.

However, there is still a long way to go before witnessing a complete shift to electric vehicles. Manufacturers are attempting to address concerns about charging infrastructure and mileage. Charging infrastructure in some markets has certainly improved in recent years, which has been critical in the positive shift in EV adoption.

55% of the potential buyers think that the improvement rate of charging infrastructure is slow which consequently may impact the adoption rate.

The government, too, can play an important role in promoting EVs and boosting the adoption rate. Federal incentives are essentially rewards for people who make an effort to clean up the environment.

For 56% of the existing EV owners, government subsidies played a significant role in their purchase decision. Interestingly, 42% of the intenders feel that the current incentive scheme should be improved to encourage them to make a purchase.

Collaboration between local governments and businesses can aid in determining the best strategy for EV charging station locations. By ensuring that the appropriate charging infrastructure is in place, one can ensure that their and the public's money is being spent wisely, facilitating the increased uptake of EVs.

Conclusion

To address raging environmental concerns and fluctuating fuel prices, the world appears ready to transition to electric vehicles. The environment is not the only advantage of EVs. They are also cost-effective to operate and maintain. Nevertheless, the path to complete transition has several impediments.

The increasing demand for EVs is an opportunity to invest in EV infrastructure and consumer engagement. The top reasons for slow EV adoption are poor drive range due to limited battery capacity, the cost versus benefit, and lack of adequate charging infrastructure. If these concerns are not addressed in a timely and appropriate manner, they can hurt potential consumers' purchase decisions.