The rise of electric vehicles is disrupting the car market and brand loyalty is experiencing fierce impact

Electric vehicles are disrupting the car market and impacting brand loyalty

【PhoneAuto News】In recent years, the rapid rise of electric vehicles has had a significant impact on the global automobile market. And a recent survey shows that electric vehicles not only impact the traditional fuel car market, but also have a strong impact on brand loyalty in the automobile market.

Tesla

According to a new study by the automotive website Edmunds, in the first quarter of 2023, 63% of electric vehicle buyers purchased a different brand than their previous vehicle when buying a new car. In contrast, only 51% of users who chose to buy a fuel-powered car did the same.

• Tesla’s market value evaporated by 360 billion overnight, and the current total market value is 763963 billion US dollars
• Volkswagen plans to launch an entry-level ID1 model with a price expected to be below $22,000
• Official Announcement! Lucid and Aston Martin Establish Long-Term Strategic Technology Partnership

Jessica Caldwell, executive director of Edmunds, said: “Electric vehicles are fiercely impacting brand loyalty in the automotive industry. If the number of mainstream brand electric vehicle models continues to increase, it remains to be seen whether consumers will maintain their loyalty or if brand loyalty is becoming a thing of the past.”

Of course, an important reason for this change is the emergence of Tesla. As a young brand, Tesla buyers are often first-time purchasers of that model, which means that most of these buyers will become “traitors” to their original brand. However, as electric vehicles continue to mature, many traditional brands are also joining the competition, providing more opportunities for those who have previously purchased traditional fuel cars, and also increasing the loyalty of traditional brand car companies to a certain extent.

Audi electric sports car

From January to May 2023, the penetration rate of electric vehicles in the United States was 6.7%, higher than the 5.2% in the same period in 2022. Among users who choose electric vehicles, younger users are obviously more interested. Among people aged 25-34, 75% consider purchasing electric vehicles. Among people aged 35-44, 88% are interested in this technology, while in the 55-64 age group, this proportion is only 27%. In terms of price, 23% of potential car buyers want a car priced below $30,000, and 49% hope the vehicle’s range can reach over 300 miles (483 kilometers).

Cordell Eminent Professor Jayant Baliga said that traditional brands need to listen to their customers’ voices and try their best to meet their needs if they want to continue to maintain high loyalty in the electrification era. How to reduce the price of electric vehicles is a problem they must face. This may also be the reason why many car companies have announced that they will launch more affordable electric vehicles.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!