What are customers looking for in an electric vehicle (EV)? Typically, they have the same things in mind that any customer would: convenience, efficiency, quality, design, and more. To showcase EVs, you need to focus on the advantages. You must be in-the-know about:
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EV technology and its benefits
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Available financial incentives
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Charging options for the customer (in-home charging as well as finding and using public charging stations)
The Market Is Ready
EVs reached record share in 2020, making up 2% of personal new registrations, according to IHS Markit1. The company forecasts EV share to be at least 3.5% in 2021 and at least 10% in 2025.
In a J.D. Power* U.S. Electric Vehicle Consideration (EVC) StudySM2 conducted from December 2020 to January 2021, 59% of new-vehicle shoppers fell into either “somewhat likely” or “somewhat unlikely” categories when it comes to considering an EV for their next purchase or lease.
What moves customers off the fence and into an EV? Knowledge! Lack of information was a reason for not considering an EV (cited by 30% of non-considerers in the EVC Study2).
Another study by Consumer Reports3 found that while approximately 98% of drivers said they had heard of electric vehicles, only 30% said they were knowledgeable about them.
To bring EVs into the picture, customers need to be better informed about the technology and the advantages.
Addressing Concerns and Presenting the Advantages
Customers who are considering an EV today have a few key concerns, according to Green Car Reports4:
Range
61% of respondents said this was their top priority. Range is extending as EV technology evolves. You can address this concern by determining how much driving the customer does in a typical day or week. Nationwide, the average commute is about 16 miles5, so range may not be a realistic concern if they have an in-home charging solution.
Purchase price
The key here is to change the conversation to focus on the total cost of ownership for an EV compared with a gas vehicle. Customers can expect lower maintenance costs because EVs have fewer moving parts to repair and replace. Fueling costs are also much less; depending on their area, electricity is roughly equivalent to gas at $1 per gallon6.
To help offset the initial purchase price EVs, there may be customer financial incentives on the federal, state, and local levels — including local utility incentives. These incentives vary, so be sure you are familiar with the offers available to your customers. All incentive programs have limited funding and are offered on a first-come/first-serve basis. Be sure to check availability at time of purchase. There are several tools online to help with this, including https://plugstar.zappyride.com/tools/incentives where you can look up incentives by ZIP code.
Charging infrastructure
How and where to fuel an EV are important customer concerns. Customers are looking for convenience: how hard will it be to charge an EV compared to refueling a gas vehicle. Locate the public charging stations near you using the Kia Access app or one of these websites:
Another important point to make with customers is that 71%3 of all drivers say that if they owned an EV, they would likely do most of their charging “in their private driveway or garage.” In-home charging stations should come up early in your discussions because it is important to know whether customers are open to this. Customers can visit qmeritcharging.com to find experienced, licensed electricians to help with home installation.
Quality
Customers are concerned with the reliability and durability of EVs, particularly when it comes to the high-voltage battery. The Kia high-voltage battery warranty covers capacity loss (State of Health or “SOH”) to 70% for 10 years/100,000 miles.
Kia is well known for our vehicles’ build quality and durability as well. According to the first J.D. Power* 2021 U.S. Electric Vehicle Experience (EVX) Ownership StudySM*, the 2020 Kia Niro EV ranked highest in the Best Ownership Experience among Mass Market Battery Electric Vehicles (BEV) segment7. Kia has also maintained the #1 spot among mass market brands in the J.D. Power Initial Quality StudySM* (IQS) for six years in a row .
Significant Opportunities for Repeat Purchases
The EVC Study2 found that firsthand experience with EVs plays an important role in future consideration. Among respondents who said they have owned or leased an EV in the past, 46% are “very likely” to consider another EV as their next vehicle.
There are many additional benefits that come with driving an EV that you can share with customers, including:
Fun-to-drive Feeling: Electric vehicles provide instant torque for quick off-the-line acceleration and a fun driving experience.
Convenience: No more gas station visits; if available, customers can “re-fuel” their vehicles right in their garage with an in-home charging station.
Zero Tailpipe Emissions: Pure electric vehicles produce no tailpipe emissions.
With the popular Kia Niro EV and the introduction of the Kia EV6, it will be important to research competitive advantages and be prepared to address these with customers who may be cross-shopping other EVs.
Taking a Test Drive
Test drives are essential when it comes to selling EVs. The EVC Study2 found that 20% of respondents who had ridden in an EV indicated they were “very likely” to purchase an EV, which is nearly three times more than those who said they have never been in one (7%).
The solution is to get more customers into EVs for a test drive where they can experience the benefits — and dispel the misconceptions — for themselves.
*Safety Information and Legal Disclaimers
Driving while distracted can result in a loss of vehicle control that may lead to an accident, severe bodily harm, and death. The driver’s primary responsibility is in the safe and legal operation of a vehicle, and the use of any handheld devices, other equipment, or vehicle systems, including steering wheel mounted controls, which take the driver’s eyes, attention, and focus away from the safe operation of a vehicle or which are not permissible by law should never be used during operation of the vehicle.
J.D. Power and Associates: All information provided by J.D. Power and Associates is proprietary information owned by J.D. Power and Associates and is protected by U.S. and international copyright law and conventions. Reproduction of this information, in whole or in part, by any means is prohibited without the express written consent of J.D. Power and Associates, other than printing copies of the JDPA content by site visitors for their personal use. J.D. Power and Associates® is a registered trademark of J.D. Power and Associates.
J.D. Power 2021 U.S. Electric Vehicle Experience (EVX) Ownership StudySM: Kia Niro EV received the highest score among mass market battery electric vehicles in the J.D. Power 2021 U.S. Electric Vehicle Experience (EVX) Ownership Study of new vehicle owners’ experience with their battery electric vehicles. Visit jdpower.com/awards.
J.D. Power 2020 U.S. Initial Quality StudySM (IQS): Kia received the lowest rate of reported problems among overall brands in a tie in the J.D. Power 2020 U.S. Initial Quality Study of new vehicle owners’ experiences with their own vehicle after 90 days of ownership. Visit jdpower.com/awards for more details.
1IHS Markit, Advisory Insights: The EV Buyer – April 2021
2https://www.jdpower.com/business/press-releases/2021-us-electric-vehicle-consideration-evc-study
3https://www.consumerreports.org/hybrids-evs/cr-survey-shows-strong-interest-in-evs/
5https://itstillruns.com/far-americans-drive-work-average-7446397.html