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.

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LA Tech ‘Moves’: Mapp Gains New CPO and CTO, Prodoscore Taps Boeing Exec

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

LA Tech ‘Moves’: Mapp Gains New CPO and CTO, Prodoscore Taps Boeing Exec
LA Tech ‘Moves’:

“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.

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This Week in ‘Raises’: GITAI Lands $30M, Steno Gains $15M

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Raises
Image by Joshua Letona

A local space robotics startup raised fresh funding to expand the flight model manufacturing facilities throughout the U.S. and increase employment, while a remote litigation platform raised more funding to continue growing its footprint in new markets across the country, develop service channels for its clients and continue expanding its tech team.

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Gitai Raises $30 Million to Expand Manufacturing Footprint in Los Angeles

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Gitai Raises $30 Million to Expand Manufacturing Footprint in Los Angeles
\u200bPhoto: Gitai

Space robotics company Gitai raised a $30 million Series B extension this week, bringing the total value of the round to roughly $47 million.

The funding will be used to further develop Gitai’s suite of space robots as well as build out its manufacturing footprint in Torrance. Previously Gitai announced it raised a $17.1 million Series B in March 2021; this additional raise is still part of that round.

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