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Report: EV loyalty stagnant, struggling for some automakers

  • Loyalty for electric vehicles has soared over the past three years
  • Industry-leader Tesla could be inflating those numbers
  • Still, EV loyalty is also up for brands like Jaguar, Mercedes-Benz and Audi

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(NewsNation) — Loyalty for electric vehicles has seen a major uptick in recent years, but Tesla’s influence could be skewing those numbers, according to an S&P Global Mobility registration data analysis.

The EV loyalty rate across the luxury segment has remained above 70% for the past three full quarters, but while Tesla consumers’ loyalty has soared, other luxury brands are maintaining or struggling to keep buyers’ interest, according to the analysis.

According to the analysis, three of four luxury electric vehicle households bought another EV for their next car purchase.

Excluding Tesla, the loyalty rate for EVs – measured by whether a household’s next car purchase is also an EV – is about 52%.

“The (original equipment manufacturers) are spending huge amounts of money to develop EVs,” said Tom Libby, associate director for loyalty solutions and industry analysis at S&P Global Mobility. “So the last thing they want is for an EV owner to go back to (internal combustion engines).”

A recent consumer survey also by S&P Global Mobility found that buyers’ consideration for purchasing an EV has fallen to 52% from 81% in 2021.

Pricing, infrastructure and range were the most frequently cited reasons for investing instead in a hybrid or ICE vehicle.

Still, non-Tesla luxury brands including Jaguar, Mercedes-Benz and Audi have seen improved EV loyalty.

Additionally, the household data examined by S&P doesn’t measure whether an EV has been replaced by another EV.

“The new purchase, in other words, could be a replacement for a different household vehicle,” the analysis read.

Tech

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