LIVONIA, Mich., Aug. 15, 2023 (GLOBE NEWSWIRE). Connected vehicle technology is becoming a key selling point for electric vehicle adoption. According to new study findings from Escalent, connected vehicle technology is becoming more of an expected EV benefit.
“There has been a notable shift in what new car buyers want in a battery electric vehicle, and state-of-the-art technology is rising in importance,” said Ben Lundin, insights director with Escalent’s Automotive & Mobility practice. “We’ve seen this trend blossom since launching our EVForward study in 2020. As a result, we’ve updated our EVForward algorithms to reflect technological appetite, instead of environmentalism, as a key driver of EV intention for future EV buyers.”
The study offers an insight into the minds of today’s and tomorrow’s electric vehicle shoppers. It revealed 60% of EV Intenders and 54% of EV Owners spend over three hours weekly in vehicles, unlike 48% new car buyers. Extended vehicle usage increases consumer familiarity with connectivity due to prolonged exposure to in-car technology and features. They connect their phone to their vehicle every time they drive, use existing connected car features, and use OEM-provided apps.
Additionally, roughly 66% of EV Owners, Intenders, and luxury car owners demand connected vehicle tech before considering a battery electric vehicle.
“Nowadays, consumers expect battery electric vehicles to fit seamlessly into their preexisting tech ecosystem, which is largely driven by smartphones and their home technology preferences and attitudes,” said Rich Clarke, vice president at Escalent and vehicle connectivity expert who leads the company’s new study on future adopters of connected vehicle services, Connectivity Forward™. “If a BEV doesn’t interact seamlessly with future EV buyers’ connected life, it may become a barrier to purchase. Future EV buyers’ tech orientation boosts potential for connected vehicle services, in contrast, creating greater opportunities in this aspect. This potential is more significant among EV buyers compared to the general population of new-car buyers.”
Additionally, connected car technology can help shoppers overcome some key EV purchase barriers.
The EVForward study found that features like range alerts, range estimators, battery level status updates, battery diagnostics, and charging finders/routing tools can alleviate consumer concerns. These concerns include range, battery life, and access to public charging, among others. Beyond addressing EV barriers, 44% of shoppers believe connected vehicle services would make EV ownership more convenient.
Automakers are boosting EV production, with a rising share of new-car sales coming from these innovative models. The findings also show that EV Intenders constitute a larger portion of the new-car buyer marketplace. It is currently at 25%, a rise from 21% in 2022. Meanwhile, the share of EV Open has fallen from 40% in 2022 to 35% in 2023. This reflects how new-car buyers receptive to purchasing an EV may be climbing up the EV adoption ladder, with EV Owners increasing from 1% in 2022 to 3% in 2023.
This trend is likely to continue as more consumers are becoming familiar with and more likely to consider BEVs:
- 37% of new-car shoppers report that they’ve either driven a EV or know the powertrain well in 2023, compared with 32% in 2022.
- 40% report knowing at least a few friends or family who own a EV, compared with 34% in 2022.
- 43% perceive EVs to be a practical option, compared with 39% in 2022.
- EV consideration rose to 38%, up from 35% in 2022.
“We’re seeing new-car buyers increasingly recognize how a EV can fit into their life. This is likely tied to increased awareness of public charging, the national EV infrastructure buildout, and the release of new and compelling EV models,” said K.C. Boyce, vice president with the Automotive & Mobility and Energy practices at Escalent. “Consumers not only expect a certain level of innovation in BEVs. A rising group sees connected car tech as vital for enhancing EV ownership, adding reassurance and satisfaction to it. Delivering EVs to the early majority aligns with integrating advanced connected vehicle services, crucial insight for industry players. These services address specific EV barriers and enhance the overall EV driving experience.”
To learn more about the study, visit escalent.co.