It’s clear the rise of electric vehicles (EVs) has redefined the auto industry from a product point of view. But it has also forced automakers to innovate in how they connect with shoppers. The divergence in approaches between legacy automakers and startups like Tesla reveals a key insight: selling EVs isn't just about the product; it's about understanding fundamentally different customer bases.
In their early days, EVs were perceived simply as vehicles with a novel propulsion system –an evolution from hybrid technology to fully electric zero-emission powertrains. However, battery-electric pioneers like Tesla treated the EV as a new kind of vehicle to be sold in a new kind of way. By shedding legacy design constraints and conventional distribution schemes, the car was reimagined as a software-defined product. Tesla's over-the-air (OTA) updates, which enable real-time improvements and new feature rollouts, exemplify this approach.
The idea of OTA updates shifted the paradigm from static vehicles to dynamic platforms, much like smartphones. For early adopters, the concept of a car as a constantly evolving tech product resonated deeply. These customers are drawn to the novelty, the innovation, and the sense of participating in a beta-testing community. For better or worse, the Tesla model embraced the spirit of technological experimentation.
Startups like Tesla have excelled at capturing the early adopter market, but moving into the mainstream presents significant hurdles. One of the primary challenges is service accessibility. The direct-to-consumer model has some advantages but lacks the extensive service infrastructure that legacy automakers have built over decades. Traditional automakers, through their dealership networks, provide customers with nearby service centers, which startups struggle to match.
Another challenge is quality. Early Tesla models faced criticism for build quality issues, such as panel gaps and inconsistent paintwork. While early adopters might overlook such flaws in exchange for innovative features, mainstream buyers demand high standards of craftsmanship.
Legacy automakers face a different set of challenges as they enter the EV space. For these manufacturers, EVs represent not just a new propulsion option but a shift in how they must engage with customers. Unlike startups, legacy automakers are accustomed to serving a loyal customer base that values simplicity and convenience.
These companies must find ways to educate mainstream buyers about EV technology. Many consumers are unfamiliar with the requirements of EV ownership. Setting up a home charger is beyond the ken of many consumers and battery maintenance doesn’t compute. Dealerships, which have traditionally been transactional in nature, need to evolve into hubs for education and support. Legacy automakers also need to prioritize hassle-free ownership experiences. While startups emphasize cutting-edge features like OTA updates, traditional manufacturers must ensure that every aspect of EV ownership – charging, service, and reliability – is as seamless as possible.
The EV market now sits at a crossroads, appealing to two very different customer groups. On one side are the early adopters and tech enthusiasts who value cutting-edge technology. These folks, often drawn to startups like Tesla or Rivian, are excited by the innovation that EVs offer. They appreciate the concept of a vehicle as a gadget on wheels, offering frequent updates and technological advancements post-purchase. For this group, glitches or minor inconveniences are often forgiven, as they see themselves as pioneers in the tech ecosystem.
On the other side are the mainstream consumers who represent the bulk of car buyers. These customers prioritize reliability, convenience, and value. For them, a car is a practical tool, not a project. They are accustomed to the seamless service and hassle-free experience provided by legacy automakers. Mainstream buyers expect their vehicles to simply work, with minimal interruptions to their routines.
Some factors that currently limit EV adoption are common to both buyer groups. Purchase price remains a significant factor, since EVs still come at a premium compared to internal combustion engine (ICE) vehicles. Charging infrastructure is another major hurdle. Startups and legacy automakers alike must find ways to make charging faster, easier, and more reliable.
Automakers must adopt new strategies and address consumer concerns to accelerate EV adoption. Encouraging households to make their second vehicle an EV is one such approach. For many consumers, this offers a low-risk entry point into EV ownership while retaining an ICE vehicle for long trips or emergencies. By positioning EVs as complementary rather than replacement vehicles, automakers can attract hesitant buyers.
In addition, automakers need to invest in the EV ecosystem. This means improving charging infrastructure, expanding service networks, and ensuring that software and hardware support systems are reliable and easy to use. Battery innovation will also play a key role in the future of EVs. Advances in battery technology, such as solid-state batteries, promise greater range and faster charging, addressing two of the most significant concerns among potential buyers.
Finally, automakers must focus on reducing costs to eliminate the price premium associated with EVs. As production scales and battery costs decline, EVs will become more competitive with ICE vehicles, making them accessible to a broader audience.
The transition to electric vehicles is a monumental shift, akin to the adoption of automobiles themselves more than a century ago. Success will depend on the ability of automakers to not only produce innovative vehicles but also to understand and cater to the evolving needs of their varied customers.
Startups must learn to address the practical concerns of mainstream shoppers, while legacy manufacturers must embrace innovation and adopt a customer-first mindset. By addressing infrastructure challenges, prioritizing quality, and offering competitive pricing, the industry can bridge the gap between early adopters and the mass market.
The journey to widespread EV adoption will be challenging, more so with potential cuts to the Inflation Reduction Act based customer subsidies. However, with thoughtful strategies and collaboration, automakers can mitigate the challenges involved in the transition to a cleaner, more sustainable future.
Srini Rajagopalan is managing director and practice leader of automotive advisory & analytics at J.D. Power.
There was a time when environmental leadership in the auto industry was a scarce commodity. Seventeen years ago, when Green Car Journal announced its first Green Car of the Year® in Los Angeles, it was difficult to identify more than a few dozen truly worthy vehicles to be considered for the honor. Today it is a formidable challenge in a different way. Now, analyzing the expansive field of green cars that champion greater environmental performance can be downright mind numbing, along with the process of honing the list down to a manageable number of candidates for each of our Green Car Awards™.
Still, this is a great problem to have and we’re up to the challenge. In fact, we celebrate the difficult and time-consuming process. This sheer number of greener models means that all of us benefit from the ability to buy and drive an increasing number of vehicles that champion a lighter impact on the environment.
As finalists are evaluated during the judging process, Green Car Journal weighs an array of important criteria such as environmental achievement, cost, value, safety, performance, functionality, and availability. These may vary from one award category to another. For instance, cost is less of a factor in Luxury Green Car of the Year™; greater driving range may not be as critical in Urban Green Car of the Year™; and immediate availability is less of an issue for Commercial Green Car of the Year™, since commercial fleets tend to plan well ahead and are used to scheduled batch builds of specialized vehicles. Some criteria take on more importance, such as electric driving range in most categories where EVs are considered; family friendliness in awards where passenger needs or capacity are important; and tow ratings and realistic long-distance towing and hauling capabilities in the case of Green Truck of the Year™.
There are more complex issues at play today. We’ve seen order banks for some new or popular pickups like the Ford F-150 Lightning and Ford Maverick suddenly close for the model year, which means consumers are no longer able to order one, at least at this time. Since price is an important consideration for most award categories, when we see sudden price hikes in the thousands of dollars, we also take notice. Then there’s the issue of supply chain disruptions and materials shortages that can delay a model’s expected availability. We take all of this into account and dive deep to ensure we’re as up to speed as possible to avoid potential surprises.
Green Car Journal’s Green Car Awards™ program has evolved over the years, most notably with the addition of more award categories to reflect the ever changing and expanding world of environmentally positive vehicles. Plus, along with the ‘greenest’ vehicles honored by the 2023 Green Car Awards™ program, Green Car Journal now recognizes the crucial roles that infrastructure and technology play in enabling a more sustainable driving future.
Let's get to it. Here are the winners of Green Car Journal’s prestigious 2023 Green Car Awards™:
TOYOTA CROWN – The Crown is Toyota's sophisticated new flagship that champions high fuel economy, lower carbon emissions, and appealing style. The five-passenger sedan features a stylish and high tech cabin designed to offer a premium feel. It’s powered by a 2.5-liter THS hybrid estimated to deliver 38 combined mpg, or a more powerful 2.4-liter turbocharged HYBRID MAX powerplant with 340 horsepower. On-demand all-wheel drive is standard.
Finalists for Green Car Journal’s legacy award included the Chevrolet Bolt EUV, Nissan Ariya, Toyota bZ4X, Toyota Crown, and Volkswagen ID.4.
CADILLAC LYRIQ – Featuring upscale styling and a premium theme, the Lyriq is Cadillac’s first all-electric vehicle that’s offered in single or dual motor versions with rear- or all-wheel drive. At a base price of $62,990, the Lyriq features an impressive 312 mile driving range. Satisfying performance is delivered by 340 horsepower in the single motor variant and 500 horsepower in the dual motor version.
Among this award’s finalists were the Cadillac Lyriq, Genesis GV60, Lexus RX, Mercedes-Benz EQB, and Polestar 2.
MITSUBISHI OUTLANDER PHEV – Last year’s introduction of the all-new Mitsubishi Outlander made waves with its more dynamic styling and upscale features. Now the next-generation Outlander PHEV has joined the lineup. Featuring standard all-wheel drive, the twin motor plug-in hybrid SUV now features significantly greater battery electric range of 38 miles and 420 miles overall, plus the addition of three-row seating that was unavailable in the previous generation Outlander PHEV.
Finalists included the Kia Sportage, Mitsubishi Outlander PHEV, Toyota Corolla Cross Hybrid, Toyota Sienna, and Volvo XC40.
RAM 1500 –The RAM 1500 is a model of versatility and functionality that provides pickup buyers loads of choices. It’s available in Quad Cab and Crew Cab configurations, offers two pickup box lengths, two- or four-wheel drive, and diverse power options. These include two hybrids – a 3.6-liter eTorque V-6 and 5.7-liter eTorque HEMI V-8 – plus a 3.0-liter EcoDiesel and 6.2-liter supercharged V-8. RAM can carry payloads up to 2300 pounds tow trailers up to 12,750 pounds.
Finalists considered for this award were the Ford F-150 Lightning, Ford Maverick, Hyundai Santa Cruz, RAM 1500, and Toyota Tundra.
FISKER OCEAN – The all-electric Fisker Ocean SUV features an appealing and sporty design enhanced by an attractive and uncluttered high-tech interior. It’s available in three versions with a driving range of 250 to 350 miles. Beyond its zero-emission electric drive, Fisker is committed to making the Ocean a model of sustainability with over 110 pounds of recycled materials used in its construction, including crushed carbon fiber and plastics from bottles and fishing nets.
Finalists for this award were the Audi Q4 e-tron, Fisker Ocean, Honda CR-V, Kia EV6, and Subaru Solterra.
FORD F-150 LIGHTNING PRO – The F-150 Lightning PRO available to fleets offers 240 to 320 miles of all electric range, depending on battery pack, with a payload capacity up to 2235 pounds. Towing capability up to 10,000 pounds is ideal for urban and regional applications where long-distance towing is not required, since towing can significantly reduce electric range. It’s available with Pro Power Onboard outlets for power at job sites. A Special Services Vehicle variant is made for non-pursuit police department applications.
Finalists for the award were the Brightdrop EV600, Ford E-Transit, Ford F-150 Lightning PRO, Rivian Delivery Van, and Via Motors Chassis Cab.
MINI COOPER SE ELECTRIC – The fully electric MINI Cooper SE carries on the tradition of the MINI as a diminutive two-door hardtop with a fun-to-drive nature and go-kart handling, adding the important distinction of zero-emission operation. The Cooper SE Electric is an ideal vehicle for urban environments, offering a small physical footprint, easy maneuverability, and an electric driving range of 114 miles between charges.
Finalists included the BMW X1, Chevrolet Bolt, Kia Niro, MINI Cooper SE Electric, and Nissan Versa.
JEEP GRAND CHEROKEE 4XE – The Grand Cherokee 4xe offers all the outstanding features of Jeep’s conventional SUV with the addition of plug-in hybrid capability. It’s powered by a 2.0-liter turbocharged four cylinder engine and two electric motors delivering a total of 375 horsepower. This Trail Rated Jeep features 25 miles of zero-emission on- and off-road driving and a combined 470 miles of range, can tow up to 6,000 pounds, and ford up to 24 inches of water since all high-volt electronics are sealed and waterproof.
Vying for this award were the RAM 1500 eTorque, Ford F-150 Lightning, Jeep Grand Cherokee 4xe, Jeep Wrangler 4xe, and Rivian R1T.
FREEWIRE TECHNOLOGIES BOOST CHARGER – Freewire Technologies’ Boost Charger integrates lithium-ion battery storage to eliminate the need for expensive electrical service upgrades at gas stations adding EV fast charging. Phillips 66 has installed a Boost Charger at a station near its Houston headquarters and plans to leverage its network of 7,000 Phillips 66, Conoco, and 76 branded sites with additional Boost Chargers.
Finalists included Clean Energy Fuels RNG Stations, EVgo Autocharge+, Electrify America Megawatt Energy Storage, Freewire Boost Charger, and SparkCharge Roadie.
LI-CYCLE SPOKE & HUB TECHNOLOGIES – Li-Cycle’s Spoke & Hub system recycles end-of-life lithium-ion battery packs without requiring dismantling. Batteries undergo a submerged shredding process at regional Spoke facilities in the U.S., Canada, and Europe that produces no wastewater, with the output a black mass consisting of critical metals including lithium, cobalt, and nickel. A centralized Hub facility then processes the black mass and creates battery grade materials for reuse.
Finalists considered for this award were BMW eDrive Zones, ConnectDER, Ford Home Integration System, GM Hydrotec Fuel Cell Power Cubes, and Li-Cycle Lithium-Ion Battery Recycling.
Rising above a substantial field of ‘green’ competitors to become a Green Car Awards™ candidate is a noteworthy achievement in itself. To honor these vehicles, all finalists considered in a Green Car Awards™ category are recognized for their commendable environmental achievement with Green Car Journal’s 2023 Green Car Product of Excellence™.