What Automakers Failed To See About EVs
Gary F Grates
Globally renowned expert and counselor in change mgt, organizational communications, corporate relevance, business strategy in a digital world
The critical role of market dynamics, consumer expectations, communications strategy
The push to all electric cars and trucks has been due in large part to government mandates forcing manufacturers to upend their portfolios faster than consumers and the infrastructure were ready. This, plus the incredible success of Tesla caused automakers to run to this new light like ants to a picnic albeit without truly discerning the truth.
If you listen to the media and others regarding the lack of EV interest (outside of Tesla) it’s all about range anxiety, lack of charging stations, time suck to recharge, and uneasiness about battery technology.
Visiting two dozen dealerships in three states recently - GM, Kia/Hyundai, Chrysler/Dodge/Ram, Ford/Lincoln, Mazda, Honda/Acura, Toyota/Lexus, Mercedes, and BMW – the common perspective among sales managers and salespeople is that EVs are not moving. The lots at these locations testify to the that point as EVs line the rows unmoved. By far, the refrain from these folks is that “people don’t want EVs.”
And that’s the point. The truth is people aren’t buying EVs. The more accurate statement is that “people are buying Tesla.”
Viewing Tesla’s success in a myopic way, automakers saw the EV market larger than it truly is. The difference between Tesla and all other automakers is that the buying decision is much deeper and profound than the product itself. Tesla began as a novelty against a David and Goliath industry fighting for every ounce of growth and building an entirely new manufacturing, marketing, and customer experience against the backdrop of an iconic owner who lived the effort on social media.
Tesla created a community of advocates interested in a different manner of existence. The vehicles reflected a fresh, modern design profile unlike anything seen on the auto landscape. Owning a Tesla wasn’t a choice but a testament to one’s lifestyle.
The Tesla narrative and backstory has as much to do with the purchase as the product itself. Automakers failed to see the distinction and ran to traditional marketing and communications efforts touting EV products through their respective brands, makes, and models. Further, automakers keep doubling down on their technology story. Except without context, it’s falling on deaf ears. They did not focus on the organizational shifts in thinking, manufacturing, engineering, design, and storytelling.
The result – EVs sitting on dealer lots.
If nothing else, Tesla has educated the world about what consumers are looking for the following regarding EVs:
1) Communications Strategy: A new story about the future enveloping manufacturing, marketing, and customer service
Reframing the company not from a technology or EV standpoint but from an operational, management thinking, and new approaches to business. Burnishing a philosophy of what a modern organization looks like. People want to know what changed behind the curtain not that you can build an EV. A new logo doesn’t constitute a new way of thinking.
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2) Market Dynamics: A coordinated, integrated approach involving dealers
This includes education, workshops, clinics at the retail level and better use of social and digital platforms to engage consumers.
My unscientific quest highlighted that salespeople are energized to figure this out but training hasn’t been effective.
3) Consumer Expectations: A concerted effort to create infrastructure locally then regionally and then nationally
In a number of dealerships, I witnessed potential buyers inquiring about local charging areas and getting little or no response. This is a turn off right at the start.
Of course, the above are only a few important steps to consider if you are not Tesla trying to compete in the EV world.
The real answer for automakers of course is to balance their portfolios reducing the race to all EVs. If this is truly the future, gas powered, hybrid and EVs should comprise an automaker’s brand and model line-up. In this way, consumers can find the right path for them and move ahead with confidence.
Once again, for PR/communications professionals it comes down to ensuring you’re not managing the future with the mindset of the past!
Gary
Driving organizational success through effective employee engagement and change management
1yI've been very curious as to what your thoughts on this topic were, so I'm pleased that you've shared them. Excellent, well-informed perspective. You are absolutely correct on all points. Thanks for the insights.