How to Overcome Electric Vehicle Sales Challenges

BY Rachel Cagle
Featured image for “How to Overcome Electric Vehicle Sales Challenges”

The automotive industry is shifting. According to a Cox Automotive report, the U.S. government has set a goal that 50% of all vehicles sold in the U.S. should be electric by 2030. As a result, auto manufacturers are launching branded electric vehicles, opening more factories to support the sales boom and are investing in battery innovations. However, Cox warns marketers that selling these vehicles will be challenging.

Electric Vehicle Sales Challenges

Right now, according to Cox, only 38% of consumers are considering purchasing an electric vehicle within the next year. Even fewer (21%) are more than 50% sure that their next vehicle will be electric. A measly 3% of consumers say their next vehicle, for sure, will be electric. So, “the industry must build higher consideration among shoppers,” says Cox.

Why is interest in electric vehicles so low, even with the rising availability and their positive environmental impact? There are still barriers to overcome. The top reason many consumers aren’t considering these vehicles is that they won’t have charging stations available in their area (57%). Another 51% also believe that this type of vehicle is too expensive. They’re also concerned that the battery won’t hold a charge (42%) and that batteries will be expensive to replace (41%).

How to Overcome Electric Vehicle Sales Challenges

Cox says that, in order to overcome electric vehicle sales challenges, your clients need to raise awareness to crush fears. Since the main concern the public has is price, be sure to include the vehicle’s price (and price comparisons) in your client’s ads. Now, don’t go bashing other company’s prices. Compare the prices of your client’s electric and non-​electric vehicles to show that they’re comparable. Also, your client’s ads should be transparent about monthly payments. Good financing programs may make the price range seem more affordable to a wider range of consumers.

Your client’s ads should also include the vehicles’ mileage ranges. Compare gas mileage to battery mileage and include how long the battery lasts on average. Comparing gas prices to how much it costs to charge electric vehicles is also important information to add. Also, be sure to at least reference a resource showing the locations of charging stations accessible to the public. Don’t forget that maintenance costs are a concern. In many cases, electric vehicles come with lower maintenance costs. So, mention a resource that answers those questions, as well.

Brand Awareness

Your clients can also use brand loyalty to their advantage. Electric vehicles may be a new factor for consumers to consider, but brand names aren’t. Ads can increase awareness among consumers that their favorite brands are joining the electric vehicle circuit. That may pique their curiosity to learn more and make electric vehicles seem more accessible.

Who to Target

The demographics currently showing the biggest interest in electric vehicles include:

  • Females: 45% (up 6% since 2019)
  • Generation Z and Millennials: 52% (an increase of 9% since 2019)
  • Consumers with Average Household Incomes of Around $87,000 (down from $90,000 in 2019)
  • College Graduates: 61% (consistent year-​over-​year since 2019)
  • Teenagers Still Living at Home: 51% (over the 45% of 2019)
  • Multicultural Consumers: 35% (down slightly from 2019)

How to Advertise to Them

Now all that’s left to figure out is how to target these consumers with ads. AudienceSCAN on AdMall by SalesFuel says that these are the ad media types that drove the most Electric Car Shoppers to take action within the last year:

  • Traditional TV ads: 77.6%
  • Sponsored search ads: 75.4%
  • Ads on social media networks: 73.5%

When it comes to consumers who may not be interested in electric vehicles, AudienceSCAN can also help. Check out specific brand audiences to see what media types have the most sway over these consumers to promote awareness.

Want to learn more about the impact COVID-​19 has had on media sales? Download our free white paper: 2020 State of Media Sales: COVID-​19 Special Report from AdMall.

Photo credit: myenergi