August 28, 2024 – While the electric vehicle market in Europe has cooled over the last few months, it will start to heat up again, and it’s going to be driven, at least in part, by upscale buyers. According to a new report from Boston Consulting Group, 38% of consumers who plan to spend €80,000 or more on a car over the coming year are considering an electric vehicle-a strong leading indicator for premium EVs.
BCG partner and managing director Kathrin Pannier, co-author of the report, said this is a special chance for electric vehicle makers. “Electric vehicle manufacturers have a unique opportunity to attract a new wave of high-end consumers. This requires offering the right-specification and right-feature electric vehicles at a competitive price point. These consumers are eager to consider electric vehicles but are digitally savvy and value-conscious,” said Pannier.
Besides this, there are sharp expectations, with a lot of question marks to be answered by the manufacturers for high-end consumers. Charging infrastructure and range top the list of barriers. According to the study, 46% of possible buyers worry about the availability of high-speed chargers, queuing times, and overall costs related to installing private chargers. Range anxiety, in particular about the performance of the battery in colder weather, sends a red flag among 44% of the respondents.
These problems reflect in the purchase behaviour of prospective buyers. Though charging and range apprehensions are general, yet the study shows marked changes in perception among people who have already taken a drive of an electric vehicle. For users who have already driven an electric vehicle, their concern about time required for charging is reduced by 24%, and range by 34%. This would suggest that exposure to EVs firsthand might clear up some of the anxiety for new buyers and provides a key lesson for manufacturers in looking to convert interest into sales.
Besides questions of practicality, the few key features that have taken center stage as main driving factors for a purchase decision for a luxury buyer include safety, comfort, sustainability, and a solid digital and tech experience. These features are slowly becoming a driving point, where they want vehicles that can cater to their performance needs yet also meet their values and preferred lifestyle.
What was underlined from this BCG study is that those criteria are to be addressed by manufacturers with the view to capture this high-end market segment. Electric vehicles have to excel in terms of safety, comfort, and sustainability while offering a seamless digital experience. Apart from all these, there will be a need to address practical concerns over charging infrastructure and range to win the confidence of potential buyers.
This shift in the market dynamics has been both a challenge and an opportunity for electric vehicle manufacturers. Innovation and offering products that attract these high-end consumers are what manufacturers need to present to cash in on this potential comeback. This needs to focus on enhancing the general driving experience, from practical issues of charging and range to exceptional safety, comfort, and technological features.
The findings of this study have pointed toward a high-growth, high-end segment for consumer-driven electric vehicles ready to invest in a premium electric vehicle offering. However, this success will have to be tuned in the right way with the evolving dynamics of consumer expectation and delivery to the promise of performance and value.
With the European EV market set to recover, the focus on premium buyers underlines a sea change in what consumers want and need. Those manufacturers that can successfully alleviate concerns about charging and range, while meeting the top standards for safety, comfort, and technology, are in the best position to capture this growing market segment. Success here opens the future for the electric vehicle industry in its ability to balance innovation with practicality at a pace that will drive new adoption by discerning consumers.
The bottom line of the BCG study is that the outlook for the high-end electric vehicle market is very promising, especially considering that more and more consumers seem interested in investing in a high-class EV. If key concerns are tackled and consumer preferences are highly valued, then growth could be considerable in this evolving market.