EV automakers need great design, development, and manufacturing flexibility afforded by digital technologies to meet ever-changing and stringent customer expectations.
The electric vehicle (EV) market is at a pivotal juncture, with consumer expectations increasingly misaligned with current market offerings. A recent survey by Edmunds highlights significant disparities between what consumers desire in EVs and what manufacturers are providing, presenting both challenges and opportunities for automotive executives.
Increasingly, technologies like digital twins, virtual commissioning, and more are seen as the way to overcome those challenges and bridge the gap between customer expectations and delivered vehicles.
To understand the scope of the issues EV automakers face, here are some of the highlights from the Edmund survey.
Price Sensitivity and Affordability
A substantial portion of potential EV buyers are seeking vehicles priced below $40,000, with 22% aiming for options under $30,000. However, the reality of the market is starkly different. As of 2023, the average transaction price for an EV stood at $61,702, significantly higher than the $47,450 average for all other vehicles. Notably, there are no new EVs with an average Manufacturer’s Suggested Retail Price (MSRP) below $30,000, and only a handful fall under the $40,000 mark, including models like the Mini Hardtop 2 Door, Nissan Leaf, Fiat 500e, and Hyundai Kona Electric. This price gap is particularly concerning given that younger consumers, who are more open to purchasing EVs, may not have the financial means to afford them.
See also: A High-level Look at How EVs Impact Auto Manufacturing
Body Style Preferences
Consumer preferences are also misaligned with current EV offerings in terms of vehicle body types. While 43% of surveyed individuals interested in EVs prefer cars, and 42% favor SUVs or crossovers, only 10% are inclined toward trucks. Despite this, the market is witnessing a surge in electric truck models, such as the Rivian R1T, Ford F-150 Lightning, GMC Hummer EV, and the anticipated Tesla Cybertruck. This overemphasis on electric trucks may not align with the broader consumer demand, suggesting a need for manufacturers to recalibrate their product strategies.
Brand Trust and Production Gaps
Brand trust plays a crucial role in consumer purchasing decisions. The survey indicates that Toyota and Honda rank third and fourth, respectively, among the brands consumers trust most to produce quality EVs. However, these brands currently have limited EV offerings in the market. This gap between consumer trust and product availability presents an opportunity for these manufacturers to capitalize on their brand equity by accelerating their EV development and production efforts.
Driving Range Expectations
Driving range remains a critical factor for consumers considering EVs. The survey reveals that 37% of respondents expect an EV to offer a range of 500 miles or more on a single charge, a benchmark that exceeds the capabilities of most current models. This expectation underscores the importance of manufacturers investing in advanced battery technologies and infrastructure to meet consumer demands and alleviate range anxiety.
Implications for Automotive Manufacturers
The findings from the Edmunds survey underscore the necessity for automotive manufacturers to realign their EV strategies with consumer expectations. Key considerations include:
- Affordability: Developing cost-effective EV models to cater to the significant market segment seeking vehicles under $40,000.
- Product Diversification: Balancing the portfolio of EV offerings to include more cars and SUVs, aligning with consumer preferences rather than an overemphasis on trucks.
- Leveraging Brand Trust: Brands with high consumer trust but limited EV offerings should expedite their EV development to capture market share.
- Enhancing Driving Range: Investing in battery technology to extend driving ranges closer to consumer expectations of 500 miles per charge.
By addressing these areas through the use of digital and smart manufacturing technologies, automotive manufacturers can better align their EV offerings with consumer expectations, fostering greater adoption and satisfaction in the evolving automotive landscape.
