Why the world needs luxury electric cars?

We all know the benefits of clean energy and still its so difficult for the people to adopt electric cars. Its been decades that the modern electric cars arrived in the market, but the market share is still well below 0.5%. I agree there are challenges with the driving range and cost. But the biggest challenge with EV is its “low perceived value”. Its treated like a second class citizen in the world of cars.

Image by OpenClipart-Vectors from Pixabay

Brands like Tesla are trying to change this perception. I believe luxury cars in this segment will help in increasing the adoption of EVs among masses.

Low perceived value

Early models of modern electric cars were introduced in early 1990s. Chrysler TEVan, Ford Ranger EV, GM EV1, Honda EV were among the first electric models. Though the technology was new but the performance was missing. None of them could go beyond 80 miles in a single charge and none of them could pick up the speed of 60 mph in less than 10 seconds. The lack of performance branded the electric cars as being “inferior”.

It was adopted by only a few. The ones who were concerned about the environment and the ones who got interested in the intricacies of new technology. Unfortunately the count of both these types was insignificant. By this time, market for gas cars was already matured and full of options. Cars with performance better than EV were available even in the budget segment. Highly performant cars a.k.a luxury segment cars had become the status symbol of rich class (this holds true today as well). Anything less than that was a compromise to this sect.

Though the range and speed of EVs kept on getting better, the intrinsic value did not go up. Electric car was always perceived as a second grade option. As per a research, electric cars were purchased as the second car also called as ‘the wife car’ in Norway. This is one of the countries which has seen the highest adoption of electric cars. Almost 50% of new cars sold are electric here. In spite of the high adoption rate, perception of electric remained inferior.

As per the same study EVs are tagged as comfortable, environmentally friendly and easy to use. It was never considered of high status value. Among most of the families, car decision was left to males. And the males used to symbolize the masculinity of cars with the speeds and performance. They never treated EVs as a power vehicle and hence it was never their first choice.

Tesla changed the game

In 2008 Tesla released their first model — Roadster. This was the first EV sports car able to go beyond 200 miles in a single charge. It could reach the speed of 60 mph in just 3.7 seconds. This level of performance was only available to luxury gas cars till now. It was a huge success with Tesla selling about 2,450 Roadsters in over 30 countries.

Since then Tesla has continued to keep up its game. All of its current models 3, S, X and Y belong to the luxury segment. Tesla Model S is one of the fastest cars. It can reach 60 mph in just 2.4 seconds. This level of performance can only be reached by cars in the super luxury segment only. Its models are studded with technology gadgets, safety and performance to match the standards.

Tesla has completely changed the face of electric cars. Earlier times, EVs were treated like a second class cars, and now the rich class is talking about it. Tesla is becoming a brand with masculine show of power and wealth. Luxury has increased the perceived value of electric cars.

The adoption in masses

If the rich start liking it, mass will follow. This is the law of human nature. Everybody wants to upgrade their lifestyle and they look forward to the superior class for aspirations. If electric becomes a favourite in luxury segment, it will soon be the craze among masses.

Also the adoption by rich class will help in building the ecosystem. Charging stations will pop up more on the highways, malls and parks. As per Tesla, they already have 17000 superchargers across the world and the number is increasing every week. More the people join the trend, more the ecosystem will become efficient. Range will not be a concern if the country has a supporting infrastructure. We will not be worried about our car running out of charge. We will not be scared of taking our EVs beyond the city limits.

Cost of an EV is not a major concern. Though the upfront price is higher, Government benefits, lower maintenance and fuel costs cover up the gap in few years. The higher upfront cost will further go down with economies of scale. People will start realizing the worth of EVs in a matter of time.

The new found love

When the gas car market was optimizing on cost, Tesla’s focus on luxury EV has given a new direction to the world. More luxury brands like Audi, Jaguar are joining the force with their electric options. Perception towards EVs is changing now. The new found love for electric is attributed to this luxury.

Sometimes it takes a different approach to convince people for the noble cause. This time luxury is going to play the role to motivate people towards a cleaner and greener world.