Are EV pre-orders a good measure of customer purchase intentions?

Are EV pre-orders a good measure of customer purchase intentions?

Welcome to Thomas Insights — every day we publish the latest news and analysis to keep our readers informed about what’s happening in the industry. Sign up here to get the top stories of the day delivered straight to your inbox.

A recent study suggests that the number of pre-orders for the ever-growing slate of upcoming electric vehicle models may not reflect actual demand. But it does reflect a certain question. It’s just… complicated.

According to a report published in Automotive NewsCiting data from EV battery technology company Recurrent, the number of pre-orders on the books for yet-to-be-released electrical appliances may skew customers’ purchase intentions.

That is because, Returning found, some buyers place multiple pre-orders at once with the intention of eventually purchasing one. And a key reason for this strategy is that many consumers are concerned about production and availability – essentially they are not confident that the vehicle they really want will be ready when they need it.

The study looked at many EV models and found that the most serious buyers were looking for Teslas, and anyone with pre-orders of these established EVs had the intent to go through with their order. Compare this to the Chevy Silverado EV, where only 20% of customers with reservations fully intend to buy this particular vehicle, according to Recurrent.

The report pointed to a buyer who said they had reservations for the Nissan Ariya, Hummer EV, Chevy Silverado EV, VW ID.4 and BMW iX. This buyer says he prefers the BMW but needed backups in case it didn’t go through.

Despite the study’s findings, other reports support the idea that interest in electric vehicles in general is on the rise. According to a recent study by JD Power, 24% of survey respondents said they would be “very likely” to buy an electric car, up four points from last year.

Image credit: TIU

Steel, metals sourcing trends rising amid tariff talksNext story »

More from Business & Industry