With the increase in awareness of climate change, people have begun to alter their lifestyles to safeguard the environment. This had applied to various fields like disposable clothes, papers, and the current trend being environmental-friendly electric cars. Electric cars are emission-free, thus ensuring the safety of the environment. Here, let’s know about the Target Market of Electric Cars.
With the global sales increasing by 160% in the first half of 2021 alone, with over 3 million units sold, the electric vehicle industry has achieved mainstream success and acclaim. It made up 27% of the global car market, a number which is projected to reach 50% in just 5 years.
With billions in revenue, there may be questions around the target market along with the strategies of the electric cars, all of which have been covered in this article along with some more relevant information.
Target Market of Electric Cars
Since the concept of electric cars has recently achieved mainstream recognition, there has been a constant debate on the target market of electric cars as the prices are still in the process of going down. Researchers have found that the target market for Electric Cars can be divided into three segments.
- Environmental Conscious Segment
- Technological Oriented Segment
- Less Flexible Environmental Segment
The environmental-conscious segment is concerned about the environment, hence they will adapt to the new change by altering their lifestyles, believing that pollution and climate change are real threats.
The Technological Oriented segment is the tech-savvy majority who desire the latest technology and have a penchant for innovation.
The Less Flexible Environmental segment is not open to change even after being aware of the environmental factors, as that includes altering their lifestyles. Hybrid cars appeal to this segment due to insignificant lifestyle changes.
All of the above-mentioned segments belonged to the high-income bracket ($100,000 or more in annual income).
Since electric cars offer a unique and smooth experience, consumers may find it impossible to switch back to fuel vehicles. But for companies to offer them this experience, they have to advertise it properly, ensuring optimum sales. Below are a few of the tried and tested market strategies for electric cars.
Social Media Presence
Due to the world shifting online, marketers must hop on this and seize the opportunity by advertising on social media platforms. Informative blogs, dedicated websites, effective youtube videos can all go a long way in finding your target audience.
Studies and surveys show that over 38% of people in the age range of 30 to 39 (Millennials) were more likely to purchase an electric vehicle after reading about them online. Rather than just relying on a wall of text, marketers can use the visual form to explain their products further. Videos of driving and testing cars can also prove to be useful.
Genuine content on social media will further generate a large viewer base and lead to a clear view of your target audience.
If you have seen any advertisements on electric cars, you may think they’re well made but include confusing and unnecessary technological jargon. Marketers emphasize on real benefits and uses of electric cars in a way that even a 10-year-old can understand.
To build a relatable product, marketers often simplify the essential details, avoiding the use of complex or confusing jargon. This leads to transparency and more curiosity in potential consumers. Electric cars can’t be suitable for everyone, thus marketers list out the differences between the usage of electric versus traditional fuel cars. For example, an electric vehicle may be great for an urban commute that has at least one charging port every 150 miles.
Offering Test Drives
There may be potential consumers generated after social media or traditional marketing campaigns. After instilling in the initial curiosity, you must fulfill it by offering test drives so they get to know the product better. It has proven effective to offer multiple test driver sessions to consumers so they can make the final decision themself.
Emphasizing Experience and Novelty
Since most cars have similar features, putting experience on novelty will increase the potential customers. Traditionally, the driving experience of fuel cars was similar regardless of the manufacturer, this can not be said about electric cars, as they are refreshingly new.
Not only do they provide a unique experience, but they also have unique features like one single long gear, electric parking, and some cars like the Tesla offering auto-pilot mode. Highlighting such unique features will further help the growth in the sales of the cars.
Advantages of Electric Cars
You may be thinking that electric cars are a marketing sham and the car companies are trying to trick you into buying them. This is not true, as multiple studies have been conducted on this topic and it has proven that electric cars are 100% eco-friendly. Not only are they environmentally friendly, but they also have other advantages listed below.
No Need For Fuel
As the name suggests, electricity is used to charge the cars. There is no need for any sort of fuel. As the gas prices are at an all-time high at the moment, it is recommended to switch to electric cars when you get the chance. Gasoline or petrol is thrice as expensive as electricity.
Electric cars can save you upwards of $2,000-$5,000 a year that you would have spent on gas. At first, it may not seem much to you but it adds up eventually.
Zero Carbon Emissions
As mentioned before, the cars are produced with the safety of the environment in mind, thus there are no carbon emissions generated from these cars. The emission of toxic gas or smoke is not seen in the cars run on a clean source of energy.
Minimum to no Noise
The motors of electric cars are highly capable of ensuring a smooth ride without generating much sound. Even with higher acceleration and long distances, the motor does not crank up. This reduces noise pollution as well.
The driving method for electric cars may seem a little hard to adapt at first, but it is comfortable and ensures a smooth driving experience once you get the hang of it. Electric cars have one long gear and there are little to no stalling problems compared to petrol cars.
Contrary to popular belief, owning an electric car won’t burn a hole in your pocket. Earlier, it used to, as the industry was small and there was no environmental awareness and demand for electric cars. The cost and maintenance of electric cars have gone down marginally due to the mass production of batteries and an increase in demand.
Prominent Electric Car Manufacturers
There have been various manufacturers of electric cars, some seizing the opportunity recently and some holding their positions for decades. Below are some of the prominent electric car manufacturers along with their top-selling models.
When it comes to electric vehicles, Tesla is by far the most famous name. They are known as the industry leaders for having over 500 million units sold worldwide. Having an all-electric car lineup, the cars are limited to plug-in mode only. The lineup includes:
- Tesla Roadster (Sports Car)
- Model Y (CUV)
- Model S (lift-back)
- Model X
- Model 3
Tesla cars are durable and attractive but the downside is the price range, which may be a repellent for most consumers on a budget. The starting price is $39,990 for the Tesla Roadster.
The classic BMW has forayed into the modern world of electric cars. With 5 models for sale at the moment, their vision is to dominate the electric vehicle market with their impressive product line, most of them being PHEV (plug-in hybrid electric vehicle). The top 5 electric cars by BMW are mentioned below:
- I-3 hatchback (includes gasoline extender as a backup option)
- I8 (sports car providing high performance)
- X5-40e (an electric variant of X-5 fuel SUV)
- 530e (plug-in version of 530)
The starting price for a BMW electric variant is $55,399 for the i-3 hatchback.
Chevrolet forayed into the electric car market in 2010 with their Volt lineup. It was an extended-range electric vehicle that had gasoline extenders in it. It was the top-selling electric vehicle in the United States for two consecutive years from 2011 to 2012.
After the success of Chevy Volt, Chevrolet launched the Chevy Bolt which was the second most sold electric car after Tesla’s Model S. It is currently marketed for $40,000.
The rise of an environmentally conscious society has made people change the way they look at vehicles. With an increase in the number of sales of electric cars, some say that this is only the beginning. The sales of electric vehicles have increased tenfold with over 50% of the world’s cars being electric by 2040.
The target market of electric cars is the millennial group. 40% of millennials are likely to own an electric car, citing environmental or technological reasons. This sudden change in the manufacturing of cars will slowly negate the negative impacts of fuel cars and reduce emissions.