Model loyalty can be essential for legacy automobile manufacturers to defend market share in opposition to the mounting menace of recent entrants similar to Tesla and cheaper imported Chinese language BEVs, in response to Bloomberg Intelligence’s newest European automobile shopping for intentions survey.
The examine additionally revealed that European shoppers proceed to favour inside combustion engine (ICE) fashions – particularly plug-in hybrids – over the battery electrical automobiles (BEVs).
Hybrids have gained in recognition, cut up evenly between plug-in hybrids (PHEVs) and hybrid electrical automobiles (HEVs), although neither is but mirrored in gross sales, with shares of 8% and 10%, respectively, in 2023.
Solely 18% of respondents planning to purchase a automobile within the subsequent 12 months stated they’d go for a BEV, with 46% saying they like hybrids.
The survey findings additionally pose a possible stumbling block to pure-plays like Tesla and Chinese language new entrants, with 74% of shoppers reluctant to purchase an imported automobile which is sweet information for home European manufacturers – however provided that they take pleasure in robust model loyalty.
“Total, model loyalty in Europe seems robust,” stated Michael Dean, senior business analyst at BI. “With 62% of survey respondents confirming they’re seemingly to purchase the identical marque and solely 14% intent on altering versus 17% in August.
“Model retention is highest in Germany, with simply 10% of these surveyed unlikely to buy the identical automobile once more. This bodes effectively for German automakers’ home market share of near 60%.
“Stellantis’ Peugeot had the bottom loyalty score, although it might draw consolation from responses to follow-up questions that steered the principle motive for altering manufacturers had been the flexibility to afford a dearer automobile or the unavailability of a most well-liked mannequin.”
He added that shopper apathy over switching to electrical could be being pushed by a watering down of pledges to ban ICE gross sales from 2035, particularly as 68% of these surveyed consider the 2035 deadline needs to be delayed.
Dean commented: “European carmakers are dialling again EV gross sales objectives in 2024 on account of rising shopper apathy. Our newest analysis reveals lower than one in 5 personal patrons favour EVs, with practically half preferring hybrids. This can be a development which performs to BMW, Mercedes and Toyota’s strengths, however disadvantages pureplay Tesla and China manufacturers.
“Tesla’s gross sales outlook continues to deteriorate, because it fell to fourth from pole place in August in our patrons’ rating of most-wanted manufacturers as competitors within the BEV house intensified. Audi now tops the checklist, intently adopted by Mercedes and BMW. Porsche isn’t far behind because the most-sought-after luxurious model, forward of Ferrari.
“Tesla’s continued worth cuts, because it seeks to maneuver about 1 million items of ramped-up capability in its Austin, Texas, and Berlin crops might delay potential patrons involved over resale values. In the meantime, European shoppers want reassurance over the standard, know-how and second-hand values of imported Chinese language manufacturers.”
An absence of charging factors, vary nervousness and excessive costs stay prime shopper issues throughout Europe, in response to the survey
Whereas European charging infrastructure is rising quickly – with solely 780,000 public connectors as of 2023 – it is failing to maintain tempo with EV gross sales and effectively under the 1.4 million factors wanted by 2025 to satisfy base transition situation.
Charging and vary nervousness are more likely to proceed to prime the checklist of shoppers’ issues, notes BI, as 77% of BEVs registered in Europe in 2023 had sub-312-mile (500 km) ranges.
As well as, the costs of recent vehicles are too excessive in Europe, in response to 83% of survey respondents, although most (27%) indicated they’ll go forward with their purchases and make financial savings elsewhere. Nonetheless, 26% (down from 28%) are more likely to delay a purchase order in anticipation of worth cuts, whereas 25% intend to purchase a lower-specification mannequin.
