As the growth of Electric Vehicles (EV) sales to private consumers begins to plateau, automotive manufacturers face an uphill challenge. With the target for EVs to comprise 22% of total sales this year and an ambitious goal of 80% zero emission new cars in 2030, what strategies can Original Equipment Manufacturers (OEMs) adopt?
Amelia Iredale, Manager, Electrification and Sustainability, MHP Consulting UK and Andrew Whitehouse, Mobility and Immersive Experience, MHP Consulting UK shed light on the necessity for OEMs to develop a comprehensive understanding of their customers through a 360-degree view, utilising driver personas to tailor messages and offerings that resonate with individual lifestyles…
Understanding EV Driver Personas
While early adopters of EVs have made the shift, broader consumer acceptance remains sluggish as traditional driving habits persist. Although sales to fleet markets are filling the gap temporarily, it is essential for OEMs to craft compelling journeys and propositions that entice diverse customer personas to transition sooner.
Consumers show varied attitudes towards EVs, each harbouring distinct reservations about moving away from Internal Combustion Engine (ICE) vehicles. These hesitations encompass concerns about battery range, access to charging points, charging times, and financial considerations relating to pricing, depreciation and battery longevity. Additionally, environmental worries about vehicle lifecycle management – including battery disposal – further complicate the decision-making process. To engage the next wave of potential drivers, OEMs must firstly identify, and then address, the unique needs of ‘enthusiasts’, ‘considerers’, ‘persuadables’ and ‘sceptics’.
Creating Positive Messaging Around EVs
Consumer education is pivotal in guiding individuals through their journey, as many apprehensions can not be easily resolved. For instance, charging infrastructure is a critical aspect, with the Society of Motor Manufacturers and Traders predicting a requirement of 2.3 million charging points in the UK by 2030. Given the current count being only 64,000 public charge points as of June 2024, this marks a 46% increase within a year. The newly elected government has committed to bolstering infrastructure investments, heralding the most significant upgrade to national transmission in a generation.
Moreover, traditional fuel stations are increasingly transforming into charging hubs, as brands collaborate with retailers to create ‘charging destinations’. In a move to enhance accessibility, OEMs like Tesla are opening their charge points to other brands. Alongside this, the Public Charge Point Regulation, effective from November 2024, will standardise pricing, facilitate contactless payment, and enforce high levels of reliability, thus improving public perceptions of charging point infrastructure.
Additionally, innovative subscription-based charging solutions are emerging, addressing the needs of residents in flats or terraced homes by utilising charging vans for overnight on-street charging. Some automotive manufacturers are also exploring these flexible offerings, to augment public infrastructure and bolster consumer confidence. On-demand mobility services, including vehicle subscription and rentals, allow potential customers to experience driving an EV without financial commitments or lifestyle changes.
Seamless Customer Journey Integration
To enhance consumer education, OEMs must scrutinise the behaviour of various customer personas when contemplating a vehicle purchase. While a small percentage of consumers prefer a completely online experience, most anticipate a blended experience that combines online research with opportunities for test drives and in-person discussions. Consequently, the dealer network remains integral to this journey, serving as the crucial point of contact for sales and servicing needs.
The transition to an agency model for EV sales has, in some cases, strained relationships with dealers. For OEMs to meet new EV sales targets, it is imperative to leverage comprehensive insights into customer and prospect data. This approach requires stronger collaboration with the dealer network to ensure all parties are aligned throughout the customer journey. While connected car data provides OEMs with valuable insights, dealers possess crucial knowledge about customer behaviour, including servicing routines and vehicle replacement histories. By effectively utilising this consolidated data, OEMs and dealers can create targeted offers that encourage diverse personas to explore the EV market.
Conclusion
As the charging infrastructure improves and customers become more accustomed to EVs, the shift towards electric mobility should naturally accelerate. In the coming years, an increasing number of drivers will experience EVs first-hand through courtesy cars while their traditional ICE vehicles are in for service or repair, helping to ease concerns about charging and range. By strategically prioritising access to EV courtesy for those in the OEMs’ ‘considerers’ category, OEMs and dealers can enhance their chances of converting the ‘persuadable’ and ‘sceptics’ into committed EV drivers.
Car manufacturers are in a prime position to facilitate a transformative shift in driver behaviour. By harnessing customer insights, they can improve education and awareness while delivering a cohesive and engaging experience. Regardless of whether a potential customer interacts with a brand online or physically visits a dealership, a comprehensive strategy that brings together the various data sources to create a complete customer picture will be essential for successfully transitioning ICE drivers to electric vehicles.
