The automotive industry is on the brink of a seismic shift. Electric vehicles (EVs) aren't just a passing trend – they are revolutionizing mobility with brands racing to claim their place in this electric future everywhere from Beijing's bustling streets to Bangkok's busy roads.
A disruptive landscape is creating urgency for EVs to build meaningfully different brands
As electrification delivers transformation, competition will intensify and brands with strong equity will drive innovation and sustainability. Electric cars comprised approximately 18 per cent of all cars sold in 2023, up from 14 per cent in 2022 and just two per cent five years earlier.1 The 2024 Beijing International Automotive Exhibition showcased 278 New Energy Vehicle (NEV) models, highlighting the transformative shift to electric vehicles. In fact, China is leading the EV revolution, where manufacturers like BYD, Li and NIO continue to thrive, forcing established makers like Volkswagen and Nissan to change the way they develop cars to remain competitive in this space.
Building a meaningfully different brand is now imperative to seriously compete in Asia-Pacific’s EV market. In the cities surveyed in APAC, over 50 per cent of potential buyers are considering Battery Electric Vehicles (BEV) as their next car to purchase2, unsurprising given rising fuel prices and strict emissions regulations are universal challenges. Incentive programs have also served to boost sales. For example, Thailand’s Ministry of Finance in Thailand offered 70,000-150,000 THB to first-time EV buyers in 2023. The incentive policies in Thailand promoted almost 400% increase of registered EV in 2024.
Why being ‘meaningfully different’ is critical to growth for EV brands
Leading EV brands like Tesla and BYD have successfully differentiated themselves through unique and dynamic brand attributes, emphasizing technological innovation and communicating strong brand personalities. Kantar’s globally recognized ‘Meaning, Difference, Salience’ (MDS) framework considers ‘different" to include ‘uniqueness’ and ‘dynamism’ – and EV brands must achieve both to succeed.
To succeed in electrification, EV brands must understand market-specific barriers. For example, in the US, 60 per cent of consumers still prefer gas/diesel cars, compared to 43 per cent in the UK and 29 per cent in Singapore; while in Germany, just over one in five consumers plan to choose fully electric by 2024 (22 per cent).5
Understanding diverse consumer and market needs and addressing their concerns holistically is essential and this is where Kantar's global network of auto expertise can be a gamechanger for the EV industry. For example, Kantar's research for Nissan ARIYA's ‘Dualities” campaign resulted in significant interest in the competitive EV SUV market.
Key strategies to electrify the EV market with meaningful difference
How can your brand show leadership to engage consumers to convert to EV? There are plenty of opportunities to make meaningful difference in the lives of potential consumers. Key strategies include:
- Infrastructure investment – limited charging stations and slow charging times deter buyers. Improving battery technology and increasing EV range are crucial. People want practical recharging solutions, such as better travel range, shorter charging times and smart route planning.
- Home charging solutions – many EV owners now use solar panels and home charging points. According to Electric Mobility6, over 50 per cent of German EV owners plan to charge at home. No matter your market, brands that address home charging concerns will build stronger consumer affinity.
- Model options and customer experience – while EV model numbers are rising, they still lag the production output of conventional vehicles. Expanding model variety and improving the purchasing experience, such as better test vehicle availability and informed sales staff can attract more buyers. Government support waning in 2023 is expected to increase EV availability, improving the purchase experience.
- Optimizing effective channel communications – choosing the right channels is crucial for effective marketing. Regional preferences vary significantly. Kantar’s 2023 Media Reactions study reveals that print media and sponsored events are preferred by auto industry marketers, while some Southeast Asian markets prefer digital and experiential marketing. Tailoring strategies to these preferences enhances campaign effectiveness.
- Meaningfully technological leadership – leading brands like Tesla and BYD differentiate through their commitment to and prowess of technological innovation, such as extensive supercharger networks and advanced charging technology. This leadership in functionality also strengthens their brand image and highlights their innovation and commitment to customer convenience. This technological edge that both brands deliver not only meets functional needs but also strengthens brand differentiation
The case for sustainability to drive meaningful difference
While creative execution significantly impacts consumer engagement and brand perception, there is a notable gap in how EV brands communicate their sustainability efforts. No EV brand has mastered the art of sustainability storytelling in a way that deeply engages consumers. This is an area ripe for development, where brands can lead with compelling narratives that showcase their commitment to reducing emissions, innovating in recyclable materials, and supporting global sustainability goals. Fundamental to delivering this with authenticity is adopting compelling:
- Storytelling techniques:
- Behind-the-scenes -consider employing narratives that focus on the journey towards sustainability, including the challenges and innovations along the way.
- Customer stories – sharing customer stories about the impact of choosing a sustainable vehicle can create a more personal connection with potential buyers.
- Future-forward perspectives – highlighting the potential positive environmental impacts of continued innovation can engage consumers who are concerned about long-term sustainability.
- Creative elements – developing case studies that demonstrate the tangible benefits of sustainability efforts, such as reductions in carbon footprints, improvements in battery recycling processes, or contributions to community-based environmental initiatives can fill the storytelling gap and resonate with consumers.
- Representation and diversity – inclusivity in advertising not only fosters broader market appeal but also enhances brand perception and loyalty. The Kantar BrandZ 2023 Automotive Report suggests that diverse representation in marketing strategies is increasingly important in the EV sector where consumer demographics are expanding and becoming more varied.
Why meaningful difference makes the electrification difference
As we navigate the complexities of the EV sector, success hinges on more than just introducing new technologies. It requires a holistic approach that embraces strategic brand building, keen market differentiation and robust communication. The journey towards electrification is fraught with challenges, from overcoming consumer barriers to effectively communicating brand values. However, it also offers unprecedented opportunities for brands that can skillfully articulate their unique propositions and align with the evolving demands of a more sustainable and technologically advanced future. In this transformative era, the brands that will lead are those that not only innovate but also effectively engage with their consumers, driving forward with clarity, creativity, and commitment to their core values.
Emma Bao
Senior Manager, Brand, Creative & Media Practice, China
Rudy Shi
Associate Manager, Brand, Creative & Media Practice, China
Valerie Zhang
Senior Client Executive, New Zealand
Anoushka Griggs
Client Manager, UK
Yusi Zhang
Associate Account Manager, China