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by Marsh Finance on Aug 8, 2024 3:00:00 PM
The electric vehicle (EV) market is forever growing, and the case for EVs seems to only strengthen. However, recent issues within the EV market, combined with a perceived lack of personality in vehicle array has left some scratching their heads regarding the future of the industry. In this piece, we take a look at the loyalty challenges the EV market faces and how to stand out in a densely packed market space.
The Current State of the EV Market
The Current State Of The EV Market
Since 2016, the number of EVs on our roads has grown from 770,000 worldwide to over 10 million by 2023, a near 2,000% increase in seven years (Statista). There are no doubts that the EV market has boomed over the last decade, and growth is set continue, with a prediction of over 17 million cars on the road by 2028. The sharp influx of EVs to the market has unearthed a possible issue that could have drastic effects for brands selling EVs: identity.
Brand Loyalty: The Risk Electric Cars Bring
Admit it, there is a certain car brand that will always have your heart. Brand loyalty in the car industry is strong, with Volvo and BMW both having loyalty rates above 56% (J.D. Power). Customers find a brand and tend to stick to it, enjoying the unique features of their brand, the unique sound and feel of the car and engine, its reliability and durability. With the arrival of hundreds of seemingly similar EVs, it is becoming harder to stand out in the market. Similar engines and power sources have created an overload of EVs that lack a unique touch. As a result, car manufacturers are facing an age-old challenge – standing out. The new era of EVs brings with it a level playing field; no brand has an established EV history to stand above others, and so it is a free game to grasp the market and become a leader. From the point of view of a car dealer, planning stock is also a challenge. Cars are constantly varying in popularity, and taking a gamble on an emerging EV can be a make-or-break decision. These factors leave the EV industry in an exciting but precarious position.
How To Lead In The EV Market
With the above in mind, many will be wondering what it takes to stand out in the EV market. As a car finance provider, we are well aware of the demands of everyday drivers and the fears they have over EVs. A constant worry centres around charging. Everyone will have heard a horror story about running out of charge in the middle of nowhere or seeing your range drop by 50 miles in an instant just because it’s cold outside. It’s true, people are cautious of the range of EVs, and until they see an improvement they will keep their money in their pockets. In our opinion, a fantastic way to stand out in the EV market is to provide a seamless charging experience, with copious amounts of battery potential off the back of one single charge. This is clearly the main barrier many face to owning an EV, and by providing a solution, you can propel your product to the forefront of the market. A fantastic example of this is Toyota, who recently announced a technology roadmap to provide vehicles with a range of nearly 500 miles based on one charge. This innovation is set to shake up the market when it debuts in 2026, solving a significant issue that EV manufacturers have not yet been able to fix. Aside from the standard practises that contribute to a successful car manufacturer, having a clear plan to constantly improve battery potential, combined with an extensive charging network is key to leading in the EV market.
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