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Electric Vehicles in Operation: Share Still Low as OEMs Make Bets on How to Time the Market

Published: January 14, 2020 by Guest Contributor

Electric Vehicle with charger

Last month, Mercedes-Benz announced it would push the North American introduction of the EQC all-electric SUV from 2020 to 2021. The company said it made the move to focus on demand in Europe. It’s true that electric vehicles (EVs) are more in demand across the Atlantic, but there are several factors that impact adoption of EVs in the U.S. ranging from costs, limited government incentives and to a lack of a nationwide infrastructure.

Since General Motors launched the EV1 in 1996, electric vehicle technology has always felt like it’s right around the corner.  “Battery costs will come down,” is a common refrain repeated by many industry observers.  Discussion of charging infrastructure and how to make cities EV ready is seemingly ubiquitous.

The reality is EVs and hybrids still have a low share of vehicles in operation (VIO) even after more than 20 years on the market. Electric vehicles have 2.08 percent of total VIO share through September 30, 2019.  Full sized pickup trucks (15.7 percent), midrange cars (10.1 percent) and entry-level crossover utility vehicles (9.5 percent) are the top three vehicle segments on the road today.

Despite the low overall VIO share, registrations of new electric and hybrid vehicles have nearly tripled since 2015. But, a deeper look at the numbers shows Tesla drives almost all EV growth. Elon Musk’s high-profile startup had 33.3 percent of EV registrations in the first three quarters of 2015 and leaped to 77.1 percent of EV share through the first three quarters of 2019.

Tesla is gobbling up market share at the expense of other manufacturers. Nissan, for example, had 26.5 percent of EV market share through the first three quarters of 2015. Its share fell to 5.3 percent through the first three quarters of 2019. Chevrolet dropped from 19.2 percent the first three quarters of 2017 to 7.3 percent in the first three quarters of 2019.

The electric market by make - New registrations January - September

The electric market by make – New registrations January – September

The general malaise in non-Tesla EV sales comes at a time when most manufacturers are ramping up plans to flood the market with EV options. General Motors, for example, has announced it will launch 20 EV models between now and 2023. GM CEO Mary Barra recently told reporters and analysts, “GM believes in the science of global warming. We believe in an all-electric future. It’s not a question of if, but when.”

But, Toyota EVP Bob Carter had a slightly different take:

“Somebody’s got to buy these things. I’ve been saying we’re going to see electrified Armageddon. Because of the cost premium, supply is going to get ahead of true customer demand.”

The reality? Both are probably right. Electric vehicles are coming. As Mary Barra said, it’s just a question of when. The challenge for automakers is to figure out the correct timing. If as, Bob Carter said, supply out paces demand, it could make for a bumpy road for manufacturers.

To learn more about the latest automotive trends impacting the marketplace, view the full Q3 2019 Automotive Market Trends Analysis.

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Published: March 1, 2025 by Jon Mostajo, test user

Electric vehicle (EV) registrations are re-gaining momentum as a wave of more affordable models hit the market, pushing more consumers than ever to make the transition. According to Experian’s State of the Automotive Finance Market Report: Q3 2024, EVs made up 10.1% of new vehicle financing this quarter, increasing more than 30% from last year. Furthermore, 45% of EV consumers leased their vehicle in Q3 2024—resulting in EVs accounting for 17.3% of all new vehicle leasing. Of the top five transacted EV models this quarter, Tesla accounted for three—with the Tesla Model Y leading at 31.8%, followed by the Tesla Model 3 (14.3%) and Tesla Cybertruck (4.9%). Rounding out the top five were the Ford Mustang Mach-E (3.9%) and Hyundai IONIQ 5 (3.7%). Interestingly, data in the third quarter of 2024 found that consumers’ financing decisions vary based on the EV model they’re looking at. For example, 76.5% of consumers purchased the Tesla Model Y with a loan and 13.1% opted for a lease; on the other hand, only 8.5% of consumers bought the Hyundai IONIQ 5 with a loan and 78.7% chose to lease. Despite the rising interest in leasing as more incentives and rebate programs roll out, some consumers still prefer to purchase their EV with a loan. Understanding financing patterns based on different models is key for professionals as they cater to the diverse preferences and determine the long-term viability of certain EVs and their potential for leasing renewals. Snapshot of the overall vehicle finance market As the finance market continues to stabilize, it’s notable that the average interest rate for a new vehicle fell year-over-year, going from 7.1% to 6.6%, respectively. However, average new vehicle loan amounts increased $736 from last year, reaching $41,068 in Q3 2024, and average monthly payments went from $732 to $737 in the same time frame. On the used side, average interest rates saw a slight uptick to 11.7% in Q3 2024, from 11.6% last year. Meanwhile, the average loan amount dropped from $1,195 over the last year to $26,091 this quarter and the average monthly payment declined from $538 to $520 year-over-year. With the overall market shifting and EVs re-sparking interest, automotive professionals should leverage how consumers are purchasing their vehicles based on average payments and the fuel type as more incentives are being offered. Monitoring these insights can unlock opportunities for tailored financing solutions that meet the needs of consumers as preferences continue to evolve. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q3 2024 presentation on demand.

Published: December 5, 2024 by Melinda Zabritski

Quick Answer: New research on generational buying habits can help the auto industry better understand target audiences and improve marketing.  The automotive industry is undergoing a rapid transformation, driven by technological advancements, changing consumer preferences, and a diverse marketplace. To navigate this complex landscape, understanding your target audience is key. This is where generational insights are indispensable.     Why Generations Matter  Each generation brings unique values, preferences, and buying behaviors to the table. Ignoring these differences can lead to ineffective marketing campaigns and missed opportunities.  Different Needs and Priorities: Baby Boomers, Gen X, Millennials, and Gen Z have distinct needs and priorities when it comes to vehicles. For example, Baby Boomers may purchase more luxury vehicles, while Gen Z purchases a higher percentage of non-luxury vehicles.  Communication Styles: Each generation responds differently to marketing messages. Traditional advertising might resonate with Baby Boomers, while social media and influencer marketing could be more effective for younger generations.  Purchasing Behavior: The way people research and purchase cars has evolved significantly across generations. Understanding these differences can help you optimize your sales process.  Leveraging Generational Insights  To effectively leverage generational insights, consider the following:  Conduct In-Depth Research: Gain a deep understanding of each generation's values, preferences, and buying habits. Use data analytics, surveys, and focus groups to gather insights.  Create Targeted Messaging: Develop tailored messaging that resonates with each generation. Highlight the features and benefits that matter most to them.  Choose the Right Channels: Select the most effective marketing channels for each generation. For example, television advertising might be less effective for Gen Z compared to social media.  Personalize the Customer Experience: Offer personalized experiences that cater to the specific needs and preferences of each generation.  Embrace Technology: Utilize technology to reach and engage different generations. For example, virtual showrooms or augmented reality experiences can appeal to younger consumers.  Special Report: Generational Insights  We've conducted in-depth research on generational buying habits for new and used vehicles. These insights can revolutionize your automotive marketing and sales strategies. Gain a competitive edge with our Automotive Consumer Trends Special Report: Generation Insights. Discover how to tailor your approach for maximum impact. Conclusion  In today's competitive automotive market, understanding your target audience is essential for success. By incorporating generational insights into your marketing strategy, you can create more effective campaigns, build stronger customer relationships, and drive sales growth. Remember, a one-size-fits-all approach is unlikely to work. Embrace the diversity of your audience and tailor your message accordingly.  Experian Automotive is here to help you with your marketing needs.  If you’d like to learn more about our solutions and how we can support you, contact us below.

Published: August 26, 2024 by Kirsten Von Busch

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