Experian Automotive is a sponsor at the 2024 Digital Dealer Conference and Expo from October 8-10, 2024.
Non-luxury electric vehicle (EV) are slowly making up more of the market, growing to 26.6 percent in Q2 2024 from 22.7 percent a year earlier, according to Experian’s Automotive Consumer Trends Report: Q2 2024. Meanwhile, the percentage of exotic and luxury models declined to 73.4 percent from 77.3 percent year-over-year.
Those changes come as a wider range EV models are being introduced, according to Experian officials. The growth in non-luxury EV registrations is indicative of the continued expansion of the overall EV market—of the 291.1 million vehicles on the road, EVs accounted for more than 3.5 million, an increase from approximately 2.7 million this time last year.
“Not only are we seeing overall growth in EV registrations, but more consumers are opting for non-luxury EVs as manufacturers roll out new models,” said Kirsten Von Busch, Experian’s director of product marketing for automotive is a press statement with the reports release. “With the EV clientele continuing to grow, there is an increased desire for functionality and affordability, something automotive professionals should keep in mind as they find ways to reach their respective audience.”
Shifting Market
The growth in non-luxury options caused a shift in non-luxury EV market share. In the second quarter, Ford led the new retail non-luxury EV market at 21.9 percent, though it was down from 24.0 percent last year. Hyundai grew from 15.2 percent to 19.3 percent year-over-year, Chevrolet declined from 24.2 percent to 13.2 percent, Kia went from 9.2 percent to 12.5 percent, and Volkswagen decreased to 11.2 percent this quarter, from 15.8 percent last year.
A trend that Experian officials highlighted was 77.4 percent of EV owners replaced their current EV with another one in the last 12 months—signaling their loyalty to the fuel type.
On the other hand, 16.2 percent transitioned to a gasoline-powered vehicle and 3.2 percent opted for a hybrid.
Mixed Ownership
“EVs have become a compelling choice over recent years as we continue to see adoption rise, but consumers are still relying on their gasoline-powered vehicles,” Von Busch continued.
“It’s possible that many are keeping a secondary vehicle to have the convenience of everyday driving while reserving the traditional fuel type for longer trips.”
To that end, the report found 81 percent of households with at least one EV also own a gasoline-powered vehicle, 14 percent own a hybrid, and 12 percent own an additional EV.
