Prediction: EVs Are Disrupting Car Shopping Habits, Giving 3 Companies a Competitive Edge in 2023

Ivan Drury
Ivan Drury is the director of insights at Edmunds, where he examines trends in the automotive industry, lends his expertise on vehicle pricing in the new and used vehicle markets and provides insights for Edmunds’ monthly sales forecasts.
​EV on predictions background
Evan Xie

Mainstream consumer interest in electric vehicles got a big nudge over the last year thanks to a perfect storm of skyrocketing gas prices, a slew of hot new EV debuts backed by impressive marketing budgets and policy debates at the national level surrounding EV tax credits.

As consumer interest in EVs has grown, some notable disruptions to traditional car shopping behavior have emerged. Many luxury car buyers are moving away from those brands. Meanwhile, EV-curious consumers are becoming more open to moving away from the brands they’ve come to trust—a huge opportunity for companies that can deliver stylish, low-cost electric vehicles quickly.


Edmunds data reveals that EVs nearly doubled to 5% of new vehicle purchases in 2022, from 2.6% a year ago. And shopper visits to green vehicle (hybrid, plug-in hybrid and battery electric) pages on Edmunds.com climbed to 11.2% of all visits from January to September 2022, compared to 7.3% for the same period in 2021.

A closer look at Edmunds’ sales and trade-in data through November 2022 for three EVs from mainstream brands — the Ford Mustang Mach-E, Hyundai Ioniq 5 and Kia EV6 — reveals that EVs not only have the power to draw in traditional luxury car owners to mainstream brands, they’re also shaking up customer loyalty across the board. These trends show encouraging signs of a brand evolution—and potential competitive advantage—for all three legacy automotive brands in 2023 and beyond.

EVs Are Attracting Traditional Luxury Car Owners to Mainstream Brands

Ford, Hyundai and Kia are succeeding at a critical element to growing market share never before seen in the industry: attracting customers from luxury brands at a significant rate. The assumption might be that once a shopper turns to the luxury market, they don’t go back—they grow accustomed to driving a vehicle that wears a badge representing an emphasis more on finer materials, enhanced driving dynamics and a level of exclusivity. But that is more a myth than reality, and these mainstream auto brands are proving they can win luxury buyers over with state-of-the-art pure electric powertrains that provide levels of performance once reserved for supercars and interiors that seamlessly blend emerging tech with sophisticated styling, all wrapped in fashionable sheet metal.

For luxury automakers of any of the legacy brick-and-mortar, startup or direct-to-consumer varieties, seeing luxury brands appearing on mainstream dealers' lots should raise some eyebrows. The trend suggests some EV customers care less about the high-end brand and more about the forward-thinking engineering and product features.

EVs Are Disrupting Customer Loyalty

Historically, automakers expect to spend billions of dollars over the course of many years—if not decades—to retain existing customers and to bring new customers into the fold. Repeat customers are critical to OEMs’ business strategies, offering a stable base for forecasting future sales. The fact that these EVs are drawing in new buyers naturally and encouraging them to change brands at much faster rates than ever seen before is a competitive advantage that any automaker would dream to have.

What This Means for Ford, Hyundai and Kia in 2023 and Beyond

This early advantage for Ford, Hyundai and Kia isn’t a guaranteed win since the EV race is set to heat up with an onslaught of new products and entrants over the next decade. But opportunities on this scale don’t come along often, and if they play their cards right, these brands could gain a significant advantage on the EV battlefield in 2023 and beyond.

For legacy automakers more broadly, it’s a lesson that relying on brand equity and heritage isn't enough. Good products can overcome marketing perceptions past or present, not vice versa. For the startup EV makers, this trend of falling loyalty among luxury buyers should be viewed as proof they can be successful.

Check out this Edmunds report for a deeper dive on 2023 EV trends.
LA’s Data Center Supply Crunch

🔦 Spotlight

Happy Friday Los Angeles!

The Los Angeles data center market is experiencing a significant supply crunch, ranking 12th in growth among top markets since 2020 with only 265 megawatts of colocation inventory (data centers where businesses rent space to store their computing hardware and servers). Despite this, demand is surging, driven by AI, cloud, and hyperscaler needs, with AI accounting for 20% of new data center demand nationally. This scarcity is creating a highly competitive environment, with vacancy rates at a record low 3% and asking rents rising 13-37% year-over-year. For Los Angeles, this presents both challenges and opportunities in the big picture. The city's strategic position as a global entertainment hub and its connectivity to international markets through subsea cables make it an attractive location for data centers. However, the limited inventory and rising costs could potentially hinder growth and innovation in the tech sector. To maintain its competitive edge, Los Angeles will need to address these constraints through new developments, such as GI Partners' 16 MW addition at One Wilshire, and by focusing on high-connectivity, high-power capacity submarkets. The city's tech community should prepare for a landscape of increased competition for quality data center space, higher costs, and the need for innovative solutions to meet growing demand, particularly in AI and cloud services. While Los Angeles faces a challenging data center supply crunch, its strategic advantages and ongoing developments offer a promising path forward.


🤝 Venture Deals

LA Companies

  • Daisy, a one-year-old startup that designs and installs smart home and office technology systems, raised a $7M Series B co-led by Goldcrest and Bungalow, with previous investors Bullish and Burst Capital also stepping up. The company has raised a total of $13.3 million. - learn more

LA Venture Funds


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    🌐Decentralizing Data & Vacations: Sony's Web3 Leap and Sensible Weather's KOA Partnership

    🔦 Spotlight

    Happy Long Weekend Los Angeles!

    Sony Group is making a significant push into the blockchain and Web3 space, leveraging its Sony Pictures and Sony Music divisions along with a new global incubator. The company has developed the Soneium blockchain through Sony Block Solutions Labs, a joint venture aimed at accelerating Web3 innovation. Sony is launching the "Soneium Minato" public testnet and a developer incubation program called "Soneium Spark" to foster ecosystem growth and adoption. The initiative includes strategic partnerships with Web3 companies such as Astar Network, Circle, and Optimism. Sony aims to create a fan community centered on creators and connect diverse values through Soneium, with the ultimate goal of integrating Web3 services into people's daily lives. While the company acknowledges the challenges faced by Web3, including limited user adoption and the need for mainstream use cases, it remains committed to decentralizing the concentrated power of the current internet landscape.

    In completely unrelated and more digestible news Sensible Weather, a leading weather protection provider that we’ve featured many times, has partnered with Kampgrounds of America (KOA) to offer Weather Guarantees at over 450 KOA Campgrounds across the United States. This collaboration allows campers to purchase weather protection for their outdoor experiences, providing peace of mind and potential reimbursements of up to 100% of their nightly rate if weather conditions exceed predefined parameters. The partnership comes at an opportune time, as camping has seen a significant increase in popularity, with active campers growing by 68% over the past decade. If you are looking to do some camping this fall make sure you look into Sensible Weather protections to ensure that unpredictable weather won't dampen (nailed it) your camping experience.


    🤝 Venture Deals

    LA Companies

    • Space and Time, a blockchain data warehouse developer, raised a $20M Series A led by Framework Ventures. - learn more
    • Miris, a provider of spatial content streaming solutions, raised a $26M Seed Round led by IAG Capital Partners. - learn more

    LA Venture Funds

    • Fika Ventures led a $4.55M Seed Round for Revenew, a San Francisco startup that aims to help digital platforms and marketplaces manage their payments and optimize financial operations. - learn more
    • Bonfire Ventures participated in a $25M Series A for Supio, an AI platform for personal injury law firms. - learn more
    • Amplify LA participated in a $2M Seed Round for Pryzm, a startup that provides tools and data to help businesses navigate government contracting more efficiently. - learn more

      ✨ Featured Event ✨

      LA TECH CEO SUMMIT

      LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

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      Personality Assessments Improving Workplace Dynamics

      Misunderstandings can have significant and sometimes severe impacts, far beyond the hilarious cake pictured above. Many organizations are increasingly using personality assessments to improve team dynamics and productivity. Tests like the Enneagram, Myers-Briggs Type Indicator (MBTI), and DISC assessment are valuable tools for developing existing teams in addition to hiring new employees. These assessments provide insights into team members' motivations, communication styles, and work preferences, helping colleagues understand each other better. By highlighting the different personalities within a team, these tests can enhance communication, resolve conflicts, and optimize task assignments based on individual strengths. As companies aim for greater efficiency and collaboration, the Enneagram, MBTI, and DISC assessments are becoming essential for transforming established teams into more effective and cohesive units.


      Image Source: iEQ9

      Enneagram

      The Enneagram test is a sophisticated personality assessment that categorizes individuals into nine distinct personality types, each defined by unique motivations, fears,and behavioral patterns. This holistic approach enhances team dynamics in a business setting by fostering self-awareness, improving communication, and facilitating conflict resolution among team members. By understanding different personality types, teams can optimize their composition, tailor professional development, and create a more empathetic and collaborative environment. This framework not only helps leaders adapt their styles to better support diverse team members but also promotes inclusivity and effective collaboration, ultimately leading to improved team performance, productivity, and retention.

      Resources:iEQ9. We recommend getting an Enneagram coach to get the most out of the results.

      Key Features: Focus on core motivations. Accounts for personality shifts under stress or growth. Offers practical, actionable guidance for personal growth. Uses a dynamic, adaptive questioning approach. Claims 95% accuracy rate through advanced techniques.


      Image Source: DiSC Profile

      DiSC (Dominance, Influence, Steadiness, and Conscientiousness)

      The DiSC assessment is a widely used behavioral analysis tool that categorizes individuals into four primary personality types: Dominance, Influence, Steadiness, and Conscientiousness. For businesses, DiSC provides valuable insights into employees' communication styles, work preferences, and motivations. By understanding these behavioral tendencies, teams can improve collaboration, reduce conflicts, and enhance overall productivity. Implementing DiSC in a business setting can lead to more effective leadership, tailored communication strategies, and optimized task allocation based on individual strengths.

      Resources:DiSC Profile.

      Key Features: Designed specifically for workplace applications. Focuses on observable behaviors rather than psychological traits. Widely researched and validated over 40+ years. Provides practical strategies for improving interactions.


      Image Source: The Myers-Briggs Company

      The Myers-Briggs Type Indicator (MBTI)

      The Myers-Briggs Type Indicator (MBTI) is a widely used personality assessment tool that categorizes individuals into 16 distinct personality types based on four dichotomies: Extraversion/Introversion, Sensing/Intuition, Thinking/Feeling, and Judging/Perceiving. For businesses, the MBTI provides valuable insights into employees' communication styles, decision-making processes, and work preferences.This helps promote a more productive workplace, and enables employees to become involved in more meaningful ways, all while leveraging everyone’s unique strengths.

      Resources:The Myers-Briggs Company.

      Key Features: Focuses on preferences rather than traits. Focuses on how people perceive and judge information. Widely used in business and career counseling


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