Consumer will pay a premium for an electric vehicle from a well-known brand, but they will pay even more for vehicles with better features.
This is one of the outcomes of a survey of more than 500 potential buyers of electric vehicles conducted by the Center for Automotive Management (CAMA) at the University of Duisburg/Essen in Â Germany.
Buyers were willing to pay an average 13,000 euros for an electric vehicle. But when they were offered vehicles of a well-known brand or cars with a greater range or shorter refueling times, they were willing to pay 30 percent more, according to the study, which was conducted between July and September.
A straight comparison between unknown and established brands showed consumers were willing to pay between 15 percent and 31 percent more for the latter. To achieve the same result for brands with low name recognition, these would have to improve their offering by as much as 60 percent.
The survey showed that new brands have opportunities in the electric-vehicle market. But they will have to provide significantly higher quality and features than their brand competitors.
CAMA warned that, despite the upward price potential, car buyers’ “maximum willingness to pay was lower than the current as well as the expected market price for all vehicles in the survey.”
According to the study, consumers would pay at most 19,433 euros for a no-brand electric vehicle. They would pay a maximum of 22,467 euros for a vehicle from an established auto brand.
The six vehicles presented to survey participants were: the German CITYSAX; India’s REVA; Italy’s Tazzari Zero; the Tesla Roadster built in the US; Norway’s Think City; and the E6, built by China’s BYD.
A PDF summary of the study ”“ in German ”“ can be found here.