Electric cars are becoming popular, as people become increasingly concerned about the environment and their carbon footprints. But this isn’t the only reason people are attracted to electric cars.
While some are drawn to the environmental benefits of electric cars, others appreciate the cost savings they offer.
So, who’s buying these cars? And why are they choosing electric over other types of vehicles including hybrid vehicles?
In this article, we will explore the target market for electric cars and discuss some of the reasons why people are making the switch to environmentally friendly transportation.
What Do Consumers Look for in An Electric Car?
When looking for an electric car, the target market tends to consider a few key factors.
First, they want an environmentally friendly vehicle. All Battery Electric cars fall into this category as they, unlike hybrids, have no fuel engine. This is one of the reasons why people buy a Tesla.
Second, they want a car that is efficient and will save them money in the long run. Electric cars are cheaper to operate than IC Engine cars, and this is one of the main reasons people choose them. Electricity is cheaper than gasoline and electric cars need less maintenance.
Third, people look for a good charging network. One of the challenges of electric cars is “range anxiety,” or the fear that the car will run out of power before reaching the destination.
To combat this, many companies are investing in charging infrastructure. When considering an electric car, consumers want to be sure that there are charging stations available so they can easily recharge their car.
Finally, consumers look for an electric car that offers a sufficient range. Electric vehicle technologies have made enormous progress in recent years, and many now have ranges that are comparable to gas-powered cars.
Still, the anxiety we discussed in the previous paragraph can be a barrier for some people and they will often opt for a hybrid car, like a Toyota Prius, instead of a pure electric vehicle.
Who Is the Target Market for Electric Cars?
One of the best ways to understand the target market for electric cars we need to understand why some people look at an electric car as their next car instead of a conventional IC Engine car or even a hybrid car.
What motivates them to switch to an electric car when problems with electric vehicles have as yet not been fully ironed out?
When we understand this motivation, we get the following segments of the target market for electric cars:
- People who worry about air pollution and climate change
- People who are looking for substantial fuel cost savings
- People who want to take advantage of government incentives
- People who have a short daily commute
- People who want a car with low maintenance costs
Let’s look closely at each of these market segments.
#1. People who worry about air pollution and climate change
One of the main reasons people are interested in electric cars is because they want to do their part to reduce air pollution and combat climate change. Electric cars produce zero emissions at the location of the car, so they are much better for the environment than gas-powered cars.
The target market for electric cars includes people who are environmentally conscious and want to reduce their carbon footprint.
These consumers are willing to pay more for an electric car because they believe it is the right thing to do for the environment and the future of the planet.
#2. People who are looking for substantial fuel cost savings
With fuel prices rising continuously, people are always on the lookout for ways to save money on gas. Electric cars can offer substantial savings over their gasoline-powered counterparts.
Electricity is cheaper than gasoline, and electric cars are more efficient than gas-powered cars, so they use less energy. This means that people who switch to an electric car can save money on fuel costs over the life of the car.
#3. People who want to take advantage of government incentives
Many governments offer incentives to encourage people to switch to electric cars. These incentives can take the form of tax breaks, subsidies, free charging, or free parking.
Such incentives make electric cars more affordable for consumers and help to increase their deployment. This helps accelerate the transition to a low-carbon economy and reduces air pollution and greenhouse gas emissions.
#4. People who have a short daily commute
Often people who switch from gas to electric cars do so because they have a short daily commute. For such people, an electric car makes perfect sense because they can charge the car overnight and have a full charge for their commute the next day.
This target market for electric cars is motivated by the convenience of not having to stop at a gas station but also by the fear of their electric car running out of battery.
This segment of the target market for electric cars will often buy an electric car for their short daily commute but still hang on to their gas-powered car for longer trips.
#5. People who want a car with low maintenance costs
Electric cars do not have many moving parts, so they are much simpler than gasoline-powered cars. This means that they require less maintenance and have lower running costs.
Many people do not like the idea of having to take their car to the mechanic for regular maintenance, so they are drawn to electric cars because they require less frequent visits.
Conclusion
The transition from gas to electric cars is well underway, and the target market for electric cars is growing. People are motivated to switch to electric cars for a variety of reasons. These reasons give us a way to segment this very interesting market.
Many people make the switch from gasoline cars to electric cars because they care about air pollution and climate change. Others do so because they are looking for substantial fuel cost savings or because want to take advantage of government incentives
People who are worried about running out of battery, choose to use electric cars only for certain short drives – like a short daily commute. And finally, people who are fed up with the regular maintenance required of IC engine cars also look at electric cars as a better alternative.
