Electric vehicles are here — Is your marketing department ready?

Limited inventory, affordability challenges, reduced customer loyalty—we all remember the significant changes brought about by the pandemic. While these issues have started to dissipate, the automotive industry is now entering a new era as electric vehicles (EVs) take center stage. For as many opportunities as this next frontier creates, an equal number of challenges emerge. These headwinds include slowing sales velocity, EV prices that are still higher than ICE vehicles, and a noisy market saturated with new EV models.

In recent months, new-vehicle inventory levels have been on the rise, reaching some of their highest point in two years, according to monthly reporting by Cox Automotive. And when you drill into this issue, you quickly see that EVs are among the segments with the highest inventory — many EVs had more than 100 days’ supply at the end of July 2023. Additionally, Kelley Blue Book reported that the average price of an EV in July 2023 was still several thousand dollars higher than the average price of a new vehicle. The Inflation Reduction Act's tax credits for EVs, which have requirements for sourcing battery minerals and components from North America or a U.S. trade partner, have further limited the models eligible for previously available rebates.

In this new reality, automotive brands must rethink their marketing strategies to drive immediate sales and foster long-term loyalty. As a marketing expert with over 20 years of experience partnering with leading auto brands, I am here to offer insights and guidance for marketers and agencies seeking to navigate the road ahead. And if you’re attending this year’s Detroit Auto Show, I’d love to talk about this advice in-person — you can find me at the indoor Powering Michigan EV Experience, electrified by Volta!

Embrace What Makes You Different

As the EV market becomes increasingly saturated with new models, it is vital for brands to highlight what sets them apart. Consumers are faced with a plethora of options, and in this crowded market, it is imperative for auto marketers to educate consumers about the unique features and attributes of their models.

Differentiation can take various forms. A study by F'inn revealed that potential EV customers prioritize factors such as durability, functionality/capabilities, price, premium quality, and ease of ownership over environmental benefits¹. Given that, OEMs should feel confident that an effective campaign could highlight standout features, distinct feelings associated with the brand, or intangible qualities such as historical legacy or innovation.

Grow the Pie

While the adoption of EVs is on the rise, a significant portion of the American population remains reluctant to make the switch. According to a recent Gallup poll, 41% of Americans stated that they are not currently considering an EV. To grow the customer base for EVs, brands must invest in ongoing education and awareness campaigns that keep their EV models top of mind.

As any technology progresses along the adoption curve, the reasons why a consumer may purchase a product diversifies. In response, OEMs should also broaden their marketing messages to appeal to a diverse audience that may or may not have much in common with earlier adopters. For instance, Kia and media agency, Canvas Worldwide, recently launched a campaign showcasing how the EV6 could provide electricity during a camping trip. These ads were designed to demonstrate how this EV model fits into, and enhances, the adventurous, outdoors lifestyle of Kia’s target audience.

Build Future Loyalty Now

Building brand loyalty is paramount for long-term success in the EV market. Auto marketers can strengthen customer relationships through brand advertising campaigns that continuously reinforce the power of their brand, keeping them in the consideration set for future car purchases or leases. For example, Subaru's ongoing "Loves Pets" campaigns resonate with consumers who have developed loyalty to the brand due to its commitment to pet rescue and animal protection.

However, fostering loyalty goes beyond ads; it requires designing unique brand experiences that engage your community throughout their entire customer journey. Ride and drives, owners’ clubs, sponsorships, and activations can all contribute to building pride among existing customers and weaving the brand into their lives.

Auto brands are making substantial investments in EVs during a time of significant change in the overall auto market. To thrive in this new reality, marketers must focus on both short-term and long-term sales velocity by building their brand and establishing a differentiated space in the growing consumer market. By targeting customers who are ready to adopt EVs, highlighting what sets their models apart, expanding the customer base through education campaigns, and building brand loyalty through unique experiences, OEMs can navigate the shifting landscape of the automotive EV market successfully.

¹F’inn, Accelerating EV Adoption Study, March 2022

Volta, a member of the Shell Group, is an industry-leading electric vehicle ("EV") charging and media company. Volta's unique network of charging stations powers vehicles and drives commerce, delivering value today while building the EV infrastructure of tomorrow. Volta offers benefits to site partners, cities, brands, and consumers by installing charging stations that feature large-format digital advertising screens located steps away from the entrances of popular commercial locations. Retailers can increase shoppers’ spending, advertisers can precisely target audiences, and EV drivers can charge their vehicles seamlessly as they go about their daily routines. Volta's extensive network leverages its proprietary PredictEV® platform, which uses behavioral science and machine learning technology to help commercial property owners and cities plan EV infrastructure intelligently, efficiently, and equitably.