A Practical Guide to Boosting Electric Vehicle Adoption in Europe

Introduction
What keeps buyers from making the shift
Six ways to spur timely adoption
Time for change
Let’s connect

Introduction

The passenger car market in Europe has reached a major intersection. Globally, governments are pushing for 100 percent electric vehicles as part of the goal for carbon neutrality by 2050. Therefore, manufacturers must accelerate the transition to electric now.

The industry saw growth in the electric vehicle (EV) segment due to early adopters, but demand has fizzled and consumer adoption is low. This is bad news for incumbent manufacturers that must drive a shift in the market.

To compete and thrive in this new era, original equipment manufacturers (OEMs) must look for ways to boost adoption of EVs and, more importantly, boost adoption of their EV models. This will require OEMs to think creatively about how to proactively address perceived negatives and tout the positives of their EV offerings.

What Keeps Buyers from Making the Shift

Increased adoption will only happen if the perceived benefits outweigh the perceived negatives of cost, complexity, and uncertainty, in comparison to alternatives.

Getting customers on board is difficult. EVs are typically more expensive than comparable internal combustion engine vehicles (ICEs), whether they are bought or leased. Other factors, such as incentives, taxes, insurance, and charging options, can tip the scales.

People who have never had an EV are wary about how hard it will be to keep their vehicle’s battery fully charged. They are also unclear about interoperability for home, road, and work—and it’s not always easy to get answers.

Businesses face their own unique challenges. Upcoming ICE restrictions on selling CO2-emitting vehicles will affect all passenger cars sold in the EU, including professional and corporate cars. With the rise of leasing and subscription agreements, a growing share of new passenger cars sold in Europe are fleet-owned rather than owned by private buyers. Expenses vary, such as installing chargers at work or subsidizing home chargers; revenues fluctuate due to factors like incentives or resale price; and usage varies, like fast charging on the road versus charging at home at night, with constraints specific to each company’s unique business model.

Fleet managers need an ever-growing skill set. Fleet managers have the burdensome responsibility of orchestrating EV transition while ensuring business continuity. They must become financial and operational vehicle experts who can reconcile environmental ambitions and cost. They must learn about environmental aspects such as energy supply and decarbonization, and coordinate internal stakeholders in larger fleets. What’s more, they must orchestrate all of this without causing disruption to the business.

Six Ways to Spur Timely Adoption

OEMs can act now to boost the pace of EV adoption. Here are six pathways to progress:

Spark interest with new buyers and create loyalists
OEMs can attract new customers who don’t have an existing relationship with their brand by creating exciting new products and experiences. For instance, some manufacturers are testing new experiences, like direct-to-consumer sales, and improved applications on their EV lines.
Focusing first on existing customers offers an advantage as there is already an established communication channel. Exposing them to the EV world may help this audience overcome status quo bias as they become more familiar with EVs. From reaching out through personalized marketing to those with expiring leases, to lending them an electric model during maintenance of their car, there are many ways a brand can increase familiarity and prepare drivers for the pivot to electric before it’s time to reach out about a potential car change.
Turn skeptics into supporters through firsthand experience
EV adoption involves not only making the switch affordable and viable, but also easing the process of change. Change management practices can provide inspiration, and suggest that the best way for humans to absorb something new is to have hands-on involvement. OEMs should offer ample opportunities for customers to try out EVs prior to ownership.
Salespeople can be among the first to test experiences and tools. This firsthand experience will allow them to share these experiences convincingly and enthusiastically with potential buyers. Similarly, fleet managers who need to influence user-choosers can offer the same types of trial opportunities to help boost adoption in corporate cars. OEMs can invest in experiences that serve potential customers, salespeople, and fleet managers to get the greatest return on investment.
Focus on the benefits
Environmental benefits are a strong motivator for choosing an EV. Green buyers may appreciate that the car represents their environmental commitment. They may also perceive that the brand shares the same values and commitment to the environment.
Pure players of electric will have an advantage in representing a sustainable agenda, but ICE incumbents can show bold transformation as they build sustainability into their brand narratives.
OEMs can also create services that demonstrate the unique benefits of EVs, especially connected services.
Deploy preventive reassurance
Take responsibility beyond car provision by including reassurance through additional services, such as access to charging options, assistance with problems, feasibility checks for long drives, and the option to lend an ICE vehicle if an EV is not feasible.
Go beyond and proactively address concerns about range, the optimal minimum charge to aim for per season, charging opportunities, and what to do in a case of battery emptying. Provide personalized, data-driven projections of how often a user would need to charge given their current habits. Allow experimentation through test drives for longer trips and flexible leases. Make it easy to always access support, such as through peer-to-peer communities that offer alternatives if the main charging options are not available.
Publicis Sapient partnered with Renault to create a peer-to-peer charging point booking service. Plug Inn is the first electric recharge network that connects people to home charging stations. This seamless and intuitive shared charging experience has the power to accelerate EV adoption and upgrade driver experiences while cultivating a friendly, trustworthy community of EV drivers that reinforces Renault’s brand. Drivers enjoy seamless alternative charging at their fingertips, at a fraction of the commercial price, while home charging point suppliers have a simple way to capture revenue from their existing chargers. Plug Inn had 8,000 new users in just its first month.
Help solve the cost equation
To dispel perceptions of high cost, clarify the cost components and use tools such as eligibility tests for incentives, payback periods at current energy prices, and links to existing “neutral” calculators. Make EVs more affordable by providing financing options through a buyer’s own bank or financing partners. Make buying and leasing options simple to understand and reliable over time, and include them in the cost FAQ and simulators.
Become a trusted guide and solution provider for fleet managers
For OEMs targeting B2B, it’s important to invest in ways to support the fleet manager and remain present throughout their electrification journey. B2B sales require understanding and targeting the specificities, such as geographies, size, and usage, of the fleets you have an edge with. Just as with individuals, offer ways to increase comfort levels with EVs. These include personalized simulations of carbon benefits, trials, consulting, and tools to identify and lift blockers to business continuity.
More so than individuals, fleet managers tend to be wary of lock-in and partiality from a provider. Demonstrating agnosticism and offering calculation and planning tools to a mix of ecosystem brands and providers can promote trust and earn the business of a company.

Time for Change

OEMs are at an important point in time where business as usual will not fuel long-term growth. While it may not happen overnight, OEMs can act now—both long before and long after an EV purchase—to help customers, salespeople, and fleet managers alike on their journey to electric. The right information, services, tools, and support can help solve the adoption equation to foster the purchase of EVs and drive the critical mass required for OEMs to prosper in a carbon-neutral future.

Let’s Connect

PIERRE GERFAUX
Mobility Lead, Publicis Sapient France
pierre.gerfaux@publicissapient.com

ROSITA KRAUS
Mobility Lead, Publicis Sapient DACH
rosita.kraus@publicissapient.com

CLÉMENCE KNAËBEL
Sustainability Consulting, Publicis Sapient France
clemence.knaebel@publicissapient.com

About Publicis Sapient

Publicis Sapient is a digital business transformation company. We partner with global organizations to help them create and sustain competitive advantage in a world that is increasingly digital. We operate through our expert SPEED capabilities: Strategy and Consulting, Product, Experience, Engineering, and Data, which combined with our culture of curiosity and deep industry knowledge, enables us to deliver meaningful impact to our clients’ businesses through reimagining the products and experiences their customers truly value. Our agile, data-driven approach equips our clients’ businesses for change, making digital the core of how they think and what they do. Publicis Sapient is the digital business transformation hub of Publicis Groupe with 20,000 people and over 50 offices worldwide. For more information, visit publicissapient.com.