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Tesla is most popular EV brand for US fleet companies

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Tesla is most popular EV brand

Tesla is most popular EV brand

Tesla is most popular EV brand Tesla is most popular EV brand for US fleet companies.

Tesla is most popular EV brand

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Tesla is most popular EV brandTesla is most popular EV brand Tesla is most popular EV brand for US fleet companies.Source: S&P Global Mobility new vehicle registrations to fleets, July 2022-July 2023Source: S&P Global Mobility new vehicle registrations to fleets, July 2022-July 2023Source: S&P Global Mobility new vehicle registrations to fleets, July 2022-July 2023High interest rates and a subdued market are putting customers off EVs.Falling behindBut the problem is cyclical.

 

With consumer demand for electric vehicles appearing to reach a plateau for the moment, automakers are finding new customers for their EV stock: daily rental, corporate, and government fleets. And the top seller into those fleets is Tesla — constituting nearly one-third of fleet purchases of EVs over the trailing 13 months.

This makes a certain sense, as Tesla is building EVs at volumes unmatched by any other OEM. But other brands are joining the fleet fray as well. Exposing consumers to EV technology via rental cars and corporate fleets can be seen as a savvy marketing move — especially for a legacy OEM trying to nibble away at Tesla’s dominant market share.

As for individual models, the Tesla Model 3 is the No. 1 EV nameplate sold into fleets. The Tesla sedan is a key element of an ongoing deal between Tesla and Hertz for the automaker to supply 100,000 units to the rental car company. Tesla is most popular EV brand.

Recent S&P Global Mobility registration data show the Tesla Model 3, Chevrolet Bolt, and Tesla Model Y as the three highest registered EVs for fleet use for the trailing 13 months through July 2023. Fleet sales are often sporadic and timed to certain buying cycles. For instance, Tesla sold more than 13,500 Model 3s into fleets in December 2022 and January 2023 combined and had spikes of about 4,300 units in both July and October 2022, but otherwise, fleet sales have been relatively low-key.

Similarly, the Chevrolet Bolt has seen significant year-over-year increases in fleet sales in 2023, while both the Hyundai Kona and Polestar 2 showed fleet spikes in June 2023.

Source: S&P Global Mobility new vehicle registrations to fleets, July 2022-July 2023

©2023 S&P Global Mobility

Offering EVs as rentals doesn’t just benefit automakers. There is growing popularity among rental fleet firms to offer trendy new vehicles to their customers. An EV rental offers a novel experience instead of the standard sedan, crossover, or minivan. It provides a way for renters, who might be EV intenders, to experience the EV lifestyle before fully committing to acquiring an EV. Tesla is most popular EV brand This could be especially true in courting women buyers, who vastly trail men in crossing the chasm to EV ownership, according to S&P Global Mobility analysis.

As such, the potential customer can sample the instant torque and one-pedal driving, as well as the real-world range of the EV, separate from a dealership test-drive. Tesla is most popular EV brand Additionally, customers can experience the public charging infrastructure. For example, the difference in Level 2 vs Level 3 charging, charging speed, Tesla vs CCS (Combined Charging Standard) charging, as well as downloading the various phone apps to access chargers — all of which have significant learning curves compared to the familiar gas station model.

Top 10 models

sold to fleets

Fleet New EV Registrations

TESLA MODEL 3

28,252

CHEVROLET BOLT

19,502

TESLA MODEL Y

11,149

FORD F SERIES

7,718

RIVIAN EDV

6,390

POLESTAR 2

6,128

FORD TRANSIT VAN

5,929

FORD MUSTANG MACH-E

3,992

KIA NIRO

3,712

HYUNDAI KONA

2,896

Source: S&P Global Mobility new vehicle registrations to fleets, July 2022-July 2023

©2023 S&P Global Mobility

Commercial and Government Fleets

Corporate and government fleets are also demonstrating the implementation of electrification initiatives to reduce their carbon footprint and align with sustainability goals by acquiring EVs. Tesla is most popular EV brand The increase in EV registrations indicates a commitment to transitioning their vehicle fleets to more environmentally friendly options. Tesla is most popular EV brand.

The Chevrolet Bolt alone represents 39% of government EV fleet registrations for the trailing 13 months as of July 2023. That is as much as the entire Ford brand’s government EV fleet contributions of the F-150 Lightning, Ford Transit, and Ford Mustang Mach-E.

Source: S&P Global Mobility new vehicle registrations to fleets, July 2022-July 2023

©2023 S&P Global Mobility

Automakers and fleet owners have been collaborating to ensure they provide EVs designed to meet the specific needs of fleet use — such as range, charging time, and passenger capacity. This collaboration has led to the development of products such as the Rivian EDV (electric delivery van), GM’s BrightDrop, and Ford Transit EV. The US Postal Service also has a purpose-built EV on order from Oshkosh Defense.

The commitment of fleet companies and automakers to collaborate on specialized EV models reflects a collective effort towards a greener and more sustainable future. As the EV market continues to evolve, these initiatives mark a pivotal moment in the transition towards cleaner transportation solutions.

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High interest rates and a subdued market are putting customers off EVs.

After years of accelerating growth, Europe’s electric car sales appear to be entering a go-slow zone as drivers wait for better, cheaper models that are two to three years down the road.

Full-electric sales in Europe were up 47 percent in the first nine months of 2023, but instead of celebrating, automakers including Tesla, Volkswagen Group and Mercedes-Benz sounded a somber note.

High interest rates and a subdued market are putting customers off, they warned, with VW’s EV order intake half what it was last year.

Dealers in Germany and Italy as well as research by four global data analysis firms say there is more behind the slower uptake than economic uncertainty, with the consumers unconvinced that EVs meet their safety, range and price needs.

“The main problem is uncertainty,” said Thomas Niedermayer, head of a 45-year-old family-owned Bavarian car dealership.

“Many assume that the technology will improve and would rather wait three years for the next model than buy a vehicle now that will quickly lose value.”

Take Flavia Garcia and Tom Carvell in Edinburgh, Scotland.

Their 15-year-old hand-me-down Toyota Auris, nicknamed Martina, needs replacing. With a gasoline and diesel car ban nearing, the couple would consider an EV, but are put off by a lack of charging infrastructure, battery life fears and price.

AutoTrader says new EVs in Britain are still on average 33 percent more expensive than fossil-fuel models.

And most new models in the pipeline targeting entry-level consumers will not hit the market before 2025 at the earliest – by which time they will be contending with an expanded Chinese lineup from leading brands including BYD and Nio in Europe.

“You want to do the right thing for the environment, but it feels like you are setting yourself up for a very expensive investment that will make your life that bit more complicated,” Garcia, a 29-year-old corporate media director, said.

“We will probably get a hybrid first.”

Falling behind

Critics have long warned that a lack of affordable EVs would eventually stall the steep sales growth boosted by early adopters and corporate fleets.

A weaker performance in September, consumer sentiment surveys and bleak commentary from automakers and dealers indicates that low growth era may have arrived.

U.S. automakers, though further behind on the transition to EVs, are also feeling the pinch. Ford and GM warned recently they were delaying the launch of cheaper EV models and pulling back on spending due to weaker demand and higher costs in the wake of new United Auto Worker contracts.

But the problem is cyclical.

Demand will remain slow for as long as there are no cheaper EVs available, Felipe Munoz of JATO Dynamics said of the slowdown in sales in Europe in September.

“From a regulatory standpoint, they do not have to push product out right now – they can afford to focus on profitability,” said Alistair Bedwell, head of powertrain forecasting at GlobalData.

“But they need to have an eye on Tesla and the Chinese brands, because they do not want to get too far behind.”

Intention to buy an EV has stayed constant in Germany over the past year, a poll by consumer research firm The Langston showed – meaning that although the number of EVs being sold is rising, the number of people wanting to buy an EV is not.

Growing sales may simply be a sign that automakers who were struggling to produce EVs because of supply chain bottlenecks can finally meet backed up orders, rather than a sign of rising demand, said The Langston’s insights manager Ben DuCharme.

Philip Nothard, insight director at dealer services company Cox Automotive, said low residual values also put buyers off as companies and many consumers choose new cars based on what they can sell them for a few years down the line.

“We call it the valley of death, which we will be going through in 2024 to 2027: low residual values, high supply, and low demand,” Nothard added.

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