Only the wealthy can revive the electric vehicle market

The European market for battery electric vehicles (BEV) could recover, primarily thanks to deep-pocketed customers considering the purchase of high-end, premium plus, and luxury vehicles costing more than €80,000. However, they will need to resolve some uncertainties before making a purchase, according to a study by the Boston Consulting Group (BCG).

The research conducted among five thousand respondents in Germany, the UK, France, Italy, and Spain showed that 38% of customers willing to spend more than €80,000 on a car are considering the purchase of a battery electric vehicle. Almost two-thirds (64%) of them would buy an electric vehicle before an internal combustion engine vehicle if it offers the same specifications.

However, as stated in BCG’s research Europe’s High-End Buyers Rethink EV Ownership, manufacturers of higher-priced electric vehicles must better address some concerns troubling higher-income buyers.

Among the main concerns troubling potential new buyers of luxury electric vehicles (46%) are charging time and availability of fast chargers, long waiting times, and the cost of installing home chargers. For 44% of respondents, the range of the vehicle is a significant issue, followed by the predictability of battery capacity, especially in cold conditions. Nevertheless, it is crucial to emphasize that these are fears of drivers who have not previously driven battery electric vehicles. Those with prior experience using battery electric vehicles are much less concerned about charging time and range.

– Electric vehicle manufacturers have a unique opportunity to attract a new generation of wealthy consumers – says co-author of the report Kathrin Pannier, partner and director at BCG, adding that manufacturers will need to offer vehicles with good specifications and performance at competitive prices to succeed.

– These are consumers who are willing to explore the electric vehicle market, but they are also digitally literate and seek value for money – said Pannier.

According to BCG’s survey, 70% of potential electric vehicle buyers belong to the millennial and Generation Z generations, with an equal ratio of women and men: 50-50. Three-quarters of them are tech enthusiasts and love trying new things, and for 75%, safety is a priority.

Dynamic driving is favored by 65% of respondents, and 64% would choose a battery electric vehicle over an internal combustion engine vehicle. Without waiting for new technological advancements, 60% of them would immediately buy a battery electric vehicle, and the same percentage is open to purchasing electric cars from Chinese manufacturers.