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The Future of EVs: “Greener” Pastures

Published: November 2, 2018 by Brad Smith

While still a relatively new and small segment, all signs point to a bright future for electric vehicles (EVs). Big name brands, including Jaguar and Mercedes-Benz, have announced new EVs hitting dealership lots all over the country. While it could take more than 20 years before EVs own a significant market share, there are four reasons why the auto industry should be enthusiastic about the electric vehicle segment’s future, including new business opportunities, growing market share, a budding loyal customer base and a commitment to sustainability by the auto industry.

New business opportunities

New tech innovations typically create innovative new jobs — and in the case of EVs, these jobs aren’t just for the folks on the assembly line. EV owners will need to charge their vehicles at home, so there will be increased demand for overnight charging. But, what about the EV owners while they are on the road? Charging stations dotting the roads like gas stations—or, even new innovations that could change the way we think about charging altogether—will start to become a reality.

For car dealers, service business will get a boost from the future influx of all-electric cars. No oil change? No problem. As NADA chairman Wes Lutz told reporters at a recent Automotive Press Association luncheon in Detroit, his dealership actually loses money on every oil change. EVs have tires, suspensions and electrical systems, which are among the most profitable service business for car dealers. As more EVs start to flood the streets, the possibilities for new business ideas to support this growing segment will be nearly limitless – both for dealers and other entrepreneurs.

Customer conquest can lead to growing market share

Dealers stand to profit from EV sales, as well. Wes Lutz again drove this point home in his APA presentation. There are more than 270 million gas-powered vehicles on the road. Dealers would be crazy not to want to sell EVs to replace every gas-powered car on the road. That would be a lot of new sales and money in the bank for savvy dealers.

Where can dealers find these customers? As we blogged about previously, individuals with higher education and high home values are currently more likely to purchase EVs. These individuals are also more likely to be found on the west coast. Smart dealers who do an EV data deep-dive can find segments fitting the EV customer profile. Using Experian demographic and psychographic data including Mosaic USA lifestyle segmentation, dealers can develop highly targeted marketing programs to get EV customers in to showrooms.

 EV Customers Show Propensity for Loyalty

Once dealers have customers in an EV, there’s a good chance they get them back again in the future. Electric Vehicle customers are showing early signs of being a highly loyal customer segment. When EV customers return to market, 62 percent buy another EV.

Tesla owners show an even higher make loyalty rate than EV customers as a whole. More than 4 in 5 Tesla customers — 80.5 percent – buy or lease another Tesla when they return to market. Tesla has the highest level of make loyalty in the industry, ahead of Subaru at 72.1 percent and Ford at 72 percent.

Environmentally Friendly

Ultimately, EVs will fulfill consumer demand for more environmentally friendly transportation. Most people prefer internal combustion engines because they are more affordable and have more utility than today’s EVs. But, as battery costs continue to come down, EV performance will more closely mimic today’s vehicles. All things being equal, customers are likely to opt for a more environmentally friendly option in the future and eventually, the scales will tip in the favor of EVs.

Despite its relatively small share of the market, there are many forces that could expedite the growth of the electric vehicle market in the near future. Dealers and manufacturers would be wise to keep a close on the data and trends to make the right decisions and find growth opportunities for the bottom line.

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In an ever-evolving automotive landscape, where shifting consumer behavior meets fluctuating market dynamics, Experian’s State of the Automotive Finance Market Report: Q2 2025 delivers key insights into how both consumers and professionals are adapting to the changes. This quarter’s report revealed a sharp increase in vehicle refinancing—up nearly 70% from Q2 2024—as consumers capitalized on the more stable rate environment. In fact, after refinancing, the average interest rate went from 10.45% to 8.45%. That shift resulted in their monthly payment dropping by an average of $71. Interestingly, credit unions played a significant role in the refinance surge, increasing their market share from 63.22% last year to 68.33% this quarter, and borrowers who refinanced through credit unions saw their monthly payments decrease by $87 on average. Banks saw a slight dip in their share of the refinancing market year-over-year, going from 22.71% to 21.45%, and borrowers who refinanced through them saved an average of $46 a month. New leaders emerge as the lender market share continues to evolve Taking a deeper dive into the automotive finance market share, banks reclaimed their leading position for total vehicle financing, rising to 27.50% in Q2 2025, from 24.50% in Q2 2024. Meanwhile, captives declined from 30.17% to 26.63% year-over-year, and credit unions slightly increased from 20.35% to 21.04% during the same period. For new vehicles, captives continued to lead at 52.39% this quarter, though it was a drop from 60.74% last year. On the other hand, banks grew from 21.12% to 25.91% and credit unions went from 9.99% to 12.24% in the same time frame. On the used side, banks edged ahead, increasing their share to 28.59% in Q2 2025, from 26.80% last year. Credit unions saw slight growth from 27.59% to 27.63%, while captives declined from 7.83% to 6.40% year-over-year. As affordability remains a key priority, consumers seem to be exploring financing options that offer more favorable terms. While Experian Automotive’s report continues to illustrate the evolving dynamics, these data-driven insights can empower both consumers and industry professionals to make smarter financial decisions. To learn more about automotive finance trends, view the full State of the Automotive Finance Market Report: Q2 2025 presentation on demand.

Published: September 5, 2025 by Melinda Zabritski

Collaboration between financial institutions and tech companies is essential to stay competitive and enhance the consumer experience.

Published: June 26, 2025 by Brian Funicelli

Electric vehicles (EVs) continue to gain traction in certain markets. In fact, at the end of 2024, 9.2% of all new retail registrations were electric, up from 8%+ in 2023 and 6%+ in 2022. Clearly, more and more in-market shoppers are leaning towards EVs, but what is actually a determining factor in their decision? A recent Experian survey [1] found 65% of respondents said they prioritize battery life, while 62% consider price, 58% are concerned with range on a full battery and 53% are focused on infrastructure and maintenance. It’s not just EVs, hybrids are getting into the mix While EVs certainly are the buzzword in the industry, it’s not the only alternative fuel type consumers are opting for. For instance, 55% of respondents said they’d consider a new hybrid and 50% said they’d consider a new EV for their next vehicle purchase. On the used side, 38% of respondents said they’d consider an EV and 42% would consider a hybrid. More granularly, the survey revealed 67% of Gen Z and 61% of Millennials are likely to buy a new EV, while 62% and 63% of these groups, respectively, expressed similar intentions for purchasing new hybrid. Gen Z and Millennials also showed a stronger-than-average interest on the used side, with 57% and 49% opting for EVs, and 57% and 52% choosing hybrids. With the younger generations gravitating towards these fuel types, it’s likely going to influence adoption rates down the road, a trend that should be watched closely as manufacturers roll out more models to meet the growing demand. However, when assessing the viewpoints of other generations, some are less likely to purchase an alternative fuel type. Two-in-five, albeit still a healthy percentage, of Gen X respondents said they’re likely to purchase a new EV and only 25% of Baby Boomers shared a similar sentiment. Meanwhile, 27% of Gen X and 12% of Baby Boomers say they’re likely to purchase a used EV. Furthermore, 46% of Gen X and 43% of Baby Boomers indicated they are likely to buy a new hybrid, while 33% and 21% of these groups, respectively, conveyed similar thoughts towards purchasing used hybrids. It’s crucial for professionals to stay attuned to shifting trends and concerns among consumers, as these factors play a role in consumer decision-making. By addressing potential setbacks and knowing where their target audience is, they can better align their strategies with consumer needs as these fuel types continue to move up on the list for everyday commuters. To learn more about EV insights, visit Experian Automotive’s EV Resource Center. [1] Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The sample consists of adults who estimate they will purchase or lease their next vehicle within the next 24 months or sooner. The margin of error is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 24 and March 27, 2025.

Published: April 30, 2025 by Kirsten Von Busch

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