Data from S&P Global Mobility shows that a quarter of Tesla buyers were previously Toyota or Honda customers. This data comes from S&P Global Mobility Research which identifies which brands consumers abandon when they buy a new Tesla.
Tesla is a pioneer of electric vehicles and has been a market leader for a very long time. With little choice of electric vehicles from other brands, Tesla is picking up sales of other well-known brands as customers want to switch to electric vehicles.
The S&P Global Mobility report found that 28.6% of customers were from Toyota (15.3%) or Honda (13.3%). Another 17% or so comes from German luxury brands; BMW (6.7%), Mercedes-Benz (6.2%) and Audi (4.4%). Customers from domestic brands such as Ford (5.4%) and Chevrolet (4.7%) were less.
In the luxury electric vehicle segment, Tesla’s dominance is perhaps most pronounced, where researchers found that Tesla commands an 86% market share. The next closest competitors are Audi (3%), Rivian (2%) and Polestar (2%). Combined, these four brands account for more than 93% of luxury electric vehicle sales in the US.
Perhaps this data was predictable, i.e. customers who left vehicles with internal combustion engines were found to most often buy a Tesla Model Y or Tesla Model 3 which are two of the company’s best-selling vehicle models.
The survey also found that the Ford Mustang Mach-E, Hyundai Ioniq 5, and Chevy Bolt were popular choices.
Several factors cause existing customers to abandon certain brands more than others. First of all, the lack of choice of electric models made them turn to other brands.
Ford, Chevy, and Hyundai/Kia, which have a portfolio of electric vehicles to offer their customers have an advantage over competitors who do not have electric offerings; Honda, Toyota and Lexus.
Unfortunately, the survey results don’t show why customers are leaving their previous brands. In addition, there is no data showing what percentage of customers who walk away from a particular brand choose Tesla over other options.
In the United States market, Tesla controls 65% of the electric vehicle market. Although this number has shrunk from 79% in 2020.
The growth of the EV market and increasing consumer choice have contributed to reducing Tesla’s share of the US electric vehicle market.
Another thing is that Tesla is losing ground is the affordable electric vehicle. The segment is now led by Ford (28%), Kia (19%), Hyundai (16%) and Chevrolet (16%).
In its conclusion, S&P Global Mobility said the growing electric vehicle market would quickly determine the success and failure of automotive brands. Only time will tell if the legacy brand will take notice.
