New car sales are showing positive signs of recovery as various macro-economic setbacks are overcome. But finding the right environment and context to push vehicles to a very fast-changing market does require an in-depth and up-to-date understanding of our perceptions towards Electric Vehicles (EVs) in particular.

Our new Connector research – conducted in December 2022 amongst drivers – uncovers some of the changing attitudes and current knowledge levels that can inform how we can better target and reach this audience in the current economic and social climate.

Motorway drivers, who by definition spend longer with their current cars, are a good representation those in the market for change. You’re never as aware of where you’re at in a relationship with your car than when you’ve been driving for an hour or so on a motorway. Is it comfortable enough, is it fast enough, have you been putting off replacing old faithful for too long? More time to think about the overall EV experience. These issues are more likely to float through people’s minds as they stop to take a well-earned break on a long journey.

Car sales are recovering – but in the changing context post-Covid of a petrol crisis, a looming recession sparked by an energy crisis and inflation. So, what are the dynamics that motor manufacturers need to consider to put real energy into their campaigns to get noticed and to have the desired effect in 2023?

Pent-up demand for BEVs

Our Connector research suggests a number of major changes and reflecting a real shift in our major purchasing intentions in light of economic and mortgage rate factors. 30% of drivers expect to change their main car in the next 12 months, with an average time frame of people expecting to change their main car in the next 2 years and 1 month. This tallies well with November’s +12% increase in Western European car sales. And while the floodgates may not be opening just yet, they certainly appear to be ajar when it comes to the UK car market.

The pickup in demand seen in the 2^nd half of 2022 has been, in part, helped by the increasing demand for EVs and Hybrids. 51% of drivers expect their next car to be an EV or Hybrid, a sharp upturn from 2019 when less than a third (31%) anticipated their next car would be battery-fuelled. 57% of new car sales are currently in this category.

What’s even more positive for manufacturers is the timeframe in which drivers are looking at transitioning to EV. When asked in 2019, 11% of drivers looking to buy a car in the next 12 months expected that car to be an EV. At the end of 2022 this stood at 37%, a huge jump that has been reflected in recent sales figures as EV sales overtake Diesel sales for the first time.

Defining those planning to switch engine types reveals an interesting mix. 80% of EV owners would go for an EV again, by far the most loyal to their current engine type. Of current Hybrid owners 58% would go Hybrid again, but a third would now switch to full EV for their next vehicle, an example of how drivers see the transition to EV via Hybrid as a stepping stone.

So, what of current petrol and diesel owners? Here we see more variation between deciding to stick or twist on engine types. 46% of Petrol owners would go for the same again, as opposed to only 29% of Diesel drivers going for a Diesel engine again. Both Petrol and Diesel are split on whether they choose EV or Hybrid – 19% petrol owners would shift to an EV, 22% Hybrid. 22% of Diesel owners meanwhile would choose an EV, 23% Hybrid.

Our research also shows that Families and Men are more likely to consider an EV purchase (+26% and +27% respectively vs all intending to buy a car in the future. EV consideration is generally higher amongst younger drivers (33% of 18-34s would go EV next vs 17% of 55+) with the older target more open to Hybrid. This has real implications for effective targeting, whilst ensuring groups outside these demographics are persuaded of the benefits to change.

Barriers and the perception gap

For a number of years, the barriers to EV adoption have been fairly consistent around the upfront cost, range concerns and charging anxiety. Our research shows that these are still key issues, but aside from upfront cost they are slowly falling as the charging infrastructure grows and range is better understood. 2022 saw a significant hike in concerns over running costs, 42% of non-EV drivers giving that as a reason not to switch (vs only 17% pre-Covid).

Clearly the volatile landscape of the energy market has made people think more about the longer-term costs of going electric. This certainly needs to be addressed by manufacturers in terms of better detailing to drivers re the typical costs of running an EV whilst electricity costs remain high.

Those already driving EVs display a significant variation in perceptions of performance and design. Non-EV owners are typically on a par with EV owners when it comes to appreciating the environmental benefits of EVs and that they’re cheaper in the long term to run and maintain. However, what is striking is non-EV drivers do not particularly consider EVs as providing higher quality or better design, which contrasts starkly with EV owners. Nearly half of EV owners value the higher quality performance, yet only 13% of petrol and diesel owners perceive that as a benefit of owning an EV. Similarly, when thinking about the overall design of their vehicle 40% of EV drivers are positive, yet only 11% of petrol and diesel owners perceive it as a benefit of switching to an EV.

These perception gaps are critical when considering how to position EV brands. Whilst car manufacturers have spent decades marketing models and brand benefits, a brand’s heritage will transfer to its EV range only to a degree. EV drivers are far more likely to read user and expert reviews, and to conduct research. As innovators and early adopters, they are motivated by a desire to have the latest thing and love to research. As the EV market now establishes itself with the early majority the need to better promote/educate on performance and design is a terrific opportunity to turn the heads of non-EV owners.

Sustainability & battery performance

Finally, it is worth noting that whilst there is a common understanding across all drivers that EVs are better for the environment, non-EV drivers have two key battery issues that concern them. Firstly, the perception that an EV battery will act like a battery on their smartphone; 71% believe an EV battery will significantly deteriorate over time, and that on average they think it will last for just 7 years.  This does not reflect the actual EV battery performance, which is more than double that figure – something appreciated and understood by EV drivers – and again is an angle for manufacturers to reassure potential misinformed buyers about their longevity.

Around half of Petrol Diesel owners think EV batteries are difficult to recycle (actually manufacturers are more focused now on recycling and repurposing batteries). This acts as a reminder to car manufacturers to not take the environmental element of EVs for granted and ensure that sustainability messaging around the batteries is addressed.

The research confirms a number of elements at this critical time for the car industry, time when there is pent-up demand, growing consideration for EVs and a desire for a sustainable solution amongst many, but also real knowledge gaps around that subject. EVs are no longer just thought of as a future possibility, and concerns about the day-to-day vehicle running costs have reached new heights. Positioning brands around the concerns and perceptions of different audiences is critical. Both Petrol and Diesel owners are looking to switch to EV or Hybrid but they’re no longer necessarily considering design or performance as the main benefit of an Electric car.

Our 2022 Connector research – the fifth wave of a series of research dating back to 2019 looking at alternative fuels for vehicles – consisted of a Nat Rep survey of 1,500 GB drivers, conducted by our research partner WALR, with additional insights supplied by our i-media Drive Panel, a bespoke panel of drivers recruited through Motorway Services.