Rivian, once hailed as a potential rival to Tesla, is struggling to gain traction with a key demographic in the U.S. electric vehicle market: Asian-American buyers.
A new study by S&P Global reveals that while Asian households accounted for 7.2% of total new car registrations in the first quarter, they represented a striking 27.2% of Teslaās sales during the same period.
Rivianās numbers tell a different story. Only 13.7% of its sales go to Asian households, and the disparity becomes sharper when looking at the pickup segment.
Just 2.3% of full-size pickup sales in the U.S. go to Asian buyersāproblematic for Rivian, whose R1T is one of only two models currently on sale.
Even among electric pickups, Rivian lags behind. 24% of Tesla Cybertruck sales are to Asian buyers, compared to just 8% for the R1T, suggesting the issue goes beyond vehicle type.
S&P Global analysts point to brand perception as a major factor. Asian-American buyers tend to favor premium, tech-forward brandsāsomething Tesla, BMW, and Mercedes have capitalized on.
For instance, 33% of Tesla Model X, 28.3% of Mercedes EQS SUV, and 25.5% of BMW iX sales go to Asian households. Rivian, by contrast, may lack the high-tech prestige that resonates with this audience.
To improve market penetration, Rivianās upcoming R2 and R3 models will need to combine affordability with a premium experience. Analysts say Rivian must not only expand its lineup but also refine its brand appeal to match the expectations of a demographic that plays an increasingly influential role in the U.S. EV market.