When a customer first walks into your dealership, can you differentiate between someone who may be interested in an electric vehicle (EV) vs. someone who is strictly looking for a traditional gas (internal combustion engine – or ICE) vehicle? The answer is “no!”
The evolving and expanding EV buyer profile means that many shoppers are now adding EVs to their short list of considerations.
Market Shifts
Until now, EV buyers were typically Gen X males. They were affluent, highly educated, married, and likely to have three or more vehicles in their household.1
However, now Millennials are expected to drive the shift to EV technology. In a recent survey, 63% of this group said they would consider an EV when shopping for a new vehicle. The same survey showed that while Baby Boomers are slower to adopt EVs, there are opportunities here as well, with 38% of this target market saying they would consider an EV.2
The next generation of EV buyers is expected to be different in several ways3:
- Less outlier, more mainstream
- More households with children
- More apartment dwellers
- More single-car households
- Demand more from an EV; willing to wait for the right one
- Younger and more diverse (but also have higher income and education)
- Live in the center or suburb of a large city
- More open to forms of alternative transportation
- Consider financial incentives important
Is The Timing Right?
When J.D. Power* surveyed people who intend to buy or lease a new vehicle in the next 18 months, about 20% said they were likely to buy an EV. Roughly 21% were unlikely. The rest were undecided.4
Some new vehicle shoppers said that an EV might be added to their shopping list if it cost less, if more charging stations existed, or if a wider variety of models were available.4
However, about one-third of shoppers cited a “lack of information” about electric vehicles as the reason they would not consider them:They just did not know enough to be comfortable.5
Most buyers are unfamiliar with EVs and have not ridden in one — and the good news is that those who have test driven an EV are roughly three times more likely to consider them.5
Interestingly, the study also found that longer commutes and high annual mileage make a shopper more likely to consider an EV — because customers (correctly) believe they will save considerable money by recharging vs. buying lots of gasoline.5
Is The Customer a Good Fit?
While some people come in looking for a specific EV, many others may need to learn more about EVs first. As you work to fully understand their needs, you can evaluate whether they would be a good choice for EV ownership.
If they are new to EV technology, be prepared to proactively address customers’ misconceptions and present the benefits of EVs.
During your discussions, it is important to set expectations properly. The goal is to ensure customers are comfortable and well prepared for EV ownership. This includes their ability — and willingness — to install an in-home charging station. This station provides easy, convenient access to Level 2 Charging* with a 40-amp, 240-volt outlet (just like a typical electric clothes dryer). Using this type of charger is much faster and more convenient than Level 1 Charging*; for a 64-kWh battery, it reduces the charging time from approximately 60 hours with Level 1 Charging* to approximately 9 and a half with Level 2 Charging*.
Breaking Down the Barriers
According to research by Deloitte, from 2018 to 2020, there were noticeable changes in consumer attitudes toward EVs. Concerns over the cost/price premium have diminished in the U.S. and the lack of charging infrastructure has become the top priority for consumers, reflecting the possibility that they are starting to see EVs as a realistic option and are considering the practicalities of ownership.6
This report predicts that some barriers will be completely removed in the next few years, including EVs’ driving range* and price when compared with gas vehicles. As the number of models available increases and EV sales continue to grow, consumers will see more of them on the roads and have more opportunities to experience EVs for themselves, which will help ease concerns.6
Growth Predictions for EVs
Edmunds.com®* reports that experts expect record EV sales for 2021.7 They attribute this to new vehicles becoming available and a positive shift in consumer interest in EVs. According to Google* Trends data, consumer searches for electric trucks and SUVs have recently hit a high point after trending upward for years.7 Customers who purchase an EV typically do additionalresearch and ask more questions than when they are shopping for traditional gas vehicles.7
Get All the Latest Details
Visit the new Kia EV Learning Center on the Kia Product Presentation Center for a wealth of information on EVs, helpful links, FAQs, and more.
*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 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.
Driving Range: Based on EPA estimates when vehicle is fully charged. Actual MPGe will vary based on driving habits, vehicle maintenance, charging practice, battery age, weather, temperature, and road/traffic conditions. Battery capacity will decrease with time and use. For more information on MPGe and range, please see www.fueleconomy.gov.
Edmunds.com®: Edmunds® and Edmunds.com® are registered trademarks of Edmunds.com, Inc.
Google®: © 2020 Google LLC All rights reserved. Google and the Google logo are registered trademarks of Google LLC.
J.D. Power: All information provided by J.D. Power is proprietary information owned by J.D. Power 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, other than printing copies of the JDP content by site visitors for their personal use. J.D. Power® is a registered trademark of J.D. Power.
Level 1 Charging: Level 1 Charging refers to 110/120V outlet. Never use an extension cord with a Level 1 connection cord. Charging times will vary with options, vehicle maintenance, charging practice, battery age, weather, temperature, and your vehicle’s condition. Battery capacity will decrease with time and use.
Level 2 Charging: 220/240V outlet from public charging or from the installation of a Level 2 charger or an Electric Vehicle Service Equipment box (EVSE). Home installation should be performed by a professional. Permits and permissions may be required for home installation. Charging times will vary with options, vehicle maintenance, charging practice, battery age, weather, temperature, and your vehicle’s condition. Battery capacity will decrease with time and use.
1 https://www.findthebestcarprice.com/electric-vehicle-statistics-trends/
3 Escalent 2020 EVForward™ Report
5 https://www.forbes.com/wheels/news/j-d-power-electric-vehicle-consideration-study/
6 https://www2.deloitte.com/us/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html