EV buyers are no longer loyal to brands. Instead, they are loyal to performance. This shift is forcing automakers to rethink what truly drives loyalty.
For decades, traditional automakers have long benefited from brand loyalty. Customers typically return for new models because they trust the brand, value its experience, and appreciate design consistency. That type of advantage now is fading, and customers value performance and quality over brand names.
What is brand loyalty?
Brand loyalty refers to a consumer’s repeated preference for purchasing vehicles from a specific manufacturer, even when alternatives with comparable features and pricing are available.
Loyalty is generally measured as the percentage of customers who repurchase from the same brand. This behavior translates into recurring revenue, lowers customer acquisition costs, and provides greater resilience against market fluctuations.
Why is brand loyalty breaking down?
Recent studies suggest that brand loyalty in the electric vehicle (EV) market is weakening. In China, two-thirds of EV buyers report a likelihood of switching brands. Similar patterns are observed in Europe and North America, especially in the premium segment. This trend is driven by three main factors:
Shift in priorities
EV consumers are prioritizing technical performance, battery range, cost of ownership, ease of charging, and in-vehicle technology. For instance, a 2024 survey revealed that nearly 70% of prospective EV buyers were concerned about driving range, while 49% cited difficulty in finding public charging stations.
In practice, nearly one in five EV owners report failed charging attempts due to non-functional or out-of-service units. These reliability issues not only disrupt daily routines but also reinforce concerns about access to charging, particularly in areas where infrastructure remains unevenly deployed.
Fig 1. Percentage of respondents willing to switch EV brands after purchasing a mainstream or premium vehicle. (Source: MCFM Mobility Consumer Pulse, 2025)
Likewise, among luxury EV buyers, one of the key forces behind shifting brand loyalty is the increasing demand for cars to feature the best and latest technology (e.g., wireless EV charging).
Fig 2. Percentage of EV drivers who reported concern about each factor at the time of purchase compared to their current views. (Source: EV Driver Annual Survey Report, 2024)
Even among those who consider themselves brand loyal, nearly 9 out of 10 said they would consider switching to another brand if it offered wireless charging. Innovation may be the main explanation of why loyalty among luxury buyers has only exceeded 50% in two quarters since 2021.
Reputation and policy volatility
Events such as public controversies and executive behavior can erode brand perception, but the long-term impact remains uncertain. Some reputational damage proves temporary, while other effects may persist.
Tesla’s recent experience illustrates this tension. In the first quarter of 2025, the company reported a 13% year-over-year decline in US deliveries. In Europe, the situation was more severe, with deliveries dropping 62% in the UK and 46% in Germany. These declines reflect how perception, amplified by leadership conduct and regulatory scrutiny, can materially affect sales performance.
More choices, better value
With nearly 70 EV models across 30 brands now available in the US alone, consumers face fewer limitations in their brand selection. Chinese automakers, such as BYD and NIO, have further disrupted the market by combining technological sophistication with aggressive pricing and global expansion strategies.
Case 1: BYD’s global disruption blueprint
BYD delivers high-efficiency electric platforms, a full lineup of affordable and mid-tier vehicles, and proprietary battery technologies. In 2024 alone, the company sold 4.27 million vehicles globally, representing a 41.3% year-over-year increase. The Seagull EV, one of the most popular models in China, priced below $11,000 USD, offers a 300 km range and challenges the notion that affordability requires compromise.
Fig 3. Key factors driving the success of BYD EVs
Here are the exclusive features of BYD EVs which are driving its global success:
- Battery technology: The Blade Battery offers fast charging (400 km of range in just 5 minutes), superior thermal management, and half the energy losses per volume compared to Tesla’s 4680 cell at the same C-rate.
- Efficient electric powertrain: The e-Platform 3.0 integrates eight key components—motor, motor controller, reducer, onboard charger, DC converter, high-voltage distribution box, vehicle controller, and battery management system—into a single unit. This deep integration achieves an industry-leading system efficiency of up to 89%.
- Product diversity: BYD has a broad lineup (over 50 passenger vehicle models) of EVs tailored for global markets. The Atto 3, for example, is engineered for international markets, offering up to 420 km WLTP range (16 kWh/100km), competitive charging speeds, and modern design.
- Sales growth: 4.27 million vehicles sold in 2024 (+41.3% YoY), making it the world’s #2 BEV seller.
- Global expansion: Rapid market entry worldwide, aiming for 50% sales outside China by 2030. BYD is investing in international manufacturing, such as its new $1 billion plant in Turkey.
- Cost leadership: Undercuts competitors with pricing strategies such as offering the Seagull EV (with a 300 km range) at under $11,000 USD in China.
Case 2: NIO’s premium-tech playbook
NIO appeals to premium customers through high-range batteries, battery-swapping infrastructure, and modular pricing via its Battery-as-a-Service (BaaS) model. With expansion into Europe and continuous iteration across its NT2.0 platform, NIO has positioned itself as a flexible, innovation-led competitor. In Q4 2024, the company reported a 45.2% increase in deliveries over the previous year.
Fig 4. Key factors driving the success of NIO EVs
Below are the standout features of NIO EVs that provide a competitive advantage in the automotive industry:
- Battery technology: NIO offers modular battery packs (75, 100, and 150 kWh, including semi-solid state), enabling long ranges (up to 1,000 km NEDC on flagship models). NIO battery swap technology allows a depleted battery to be replaced with a fully charged one in under 5 minutes.
- Efficient electric powertrain: NIO’s NT2.0 platform supports dual-motor AWD, delivering up to 480 kW (644 hp) and 0–100 km/h in as little as 3.8 seconds (ET7).
- Product diversity: With 11 production models, NIO’s premium EV lineup includes sedans (ET7, ET5), SUVs (ES8/EL8, ES7/EL7, EC6), and crossovers, all with advanced tech and luxury features, built on the NT2.0 platform.
- Sales growth: In Q4 2024, NIO delivered 72,689 vehicles, a 45.2% increase compared to the same period in 2023. Quarterly revenues stood at RMB19.7 billion ($2.7 billion USD), up 15.2% from Q4 2023.
- Global expansion: NIO has launched in Norway, Germany, the Netherlands, Sweden, and Denmark, with localized services, battery swap infrastructure, and NIO Houses for community building.
- Cost leadership: NIO’s Battery-as-a-Service (BaaS) model lowers upfront cost by decoupling battery ownership, making premium EVs more accessible, and enabling flexible battery upgrades. The price for the premium ET5 starts at around $47,000 USD in China, with Firefly models expected to enter the European market at under $30,000 USD.
What do automakers need to consider?
As EVs reset brand loyalty, automakers have the chance to redefine what really makes a brand matter. Here are the key interconnected factors that carmakers need to avoid.
- Loyalty at risk: Legacy automakers can no longer assume that existing customers will return for their first EV. Failing to meet performance expectations or pricing thresholds could result in permanent loss of loyalty.
- Complex purchase journey: EV automakers need to understand that for buyers, acquiring their first EV is a complicated buying journey. Most references for buyers relate to online research, recommendations of family and friends, and discussions with car mechanics or specialists.
- Performance over image: Brands must now compete on real-time product performance, digital features, charging support, and ownership experience, not just design and brand image. This demands rapid iteration and tighter alignment between product teams and marketing.
- Seamless buying experience: Buyers want test drives and online configuration, but often finalize orders in person. This hybrid journey must be seamless, especially as Gen Z and millennial buyers expect digital-first experiences.
How can automakers thrive in a brand-agnostic market?
Automakers face a pivotal moment as brand loyalty wanes and performance takes center stage in EV buying decisions. Here are the strategies that can help them stay competitive and win over today’s discerning consumers.
Embrace EV-first brand positioning
Brand loyalty is fading, forcing automakers to rethink how they build and sustain relevance. EV-first positioning helps signal a clear shift toward performance, accessibility, and next-generation technology. Consumers now expect electric models that balance innovation, affordability, and a clear sense of commitment.
Volkswagen’s Advance-Attack-Achieve strategy reflects this direction with a $21,500 ID. EVERY1 EV model. Their plan to release nine additional EVs by 2027 strengthens that message across price tiers. Clear intent, consistent output, and pricing discipline can rebuild trust in an increasingly brand-agnostic market.
Prioritize product-led growth
Product-led growth is central to competing in a market where brand loyalty holds less value. Buyers now compare EVs by performance, cost, and charging experience more than brand reputation. Meeting expectations in these areas helps shift attention from nameplates to tangible value.
Automakers should enhance price-to-tech balance, reduce failure rates, and simplify charging across networks. Customers expect reliable performance that supports daily use without friction or maintenance uncertainty. These efforts reinforce why the vehicle was chosen, making repeat purchases more likely.
Redesign the ownership experience
Ownership experience now shapes customer trust more than logos or legacy reputation. Every interaction, from maintenance alerts to billing clarity, contributes to the long-term value buyers associate with a brand.
App-based tools must support repairs, service scheduling, and battery health with clear communication and ease. Consumers expect pricing to remain stable and predictable throughout the ownership period. When digital systems reduce friction, they reinforce reliability and help brands retain increasingly selective EV buyers.
Compete on agility
To stay competitive in a brand-agnostic market, automakers must adopt faster product development cycles. Consumer expectations shift fast, and performance gaps between models close quickly. BYD and NIO reduce delays by iterating quickly and releasing frequent updates across their product lines.
Legacy brands must shorten launch cycles and respond to consumer feedback with targeted improvements. Cross-team coordination between R&D and product marketing helps identify features buyers value most. This approach keeps offerings relevant and reinforces brand strength where loyalty is fading.
Segment and localize aggressively
As brand loyalty fades, automakers must reflect customer diversity in product and message planning. Buyers across regions and age groups expect vehicles that match their unique usage needs. A generic approach reduces relevance and weakens competitive positioning in local and niche markets.
Millennials account for 61% of EV adoption, while rural buyers face challenges accessing charging facilities. These differences necessitate adjustments in pricing, features, and infrastructure support tailored to each region. Segmentation enables brands to respond to shifts in consumer preferences and enhance their standing in a brand-agnostic market.
Employ AI to improve loyalty
Brand loyalty is changing fast, and automakers need better ways to keep customers engaged. AI helps identify shifting needs, purchase intent, and changing product priorities across customer segments. These insights support timely actions that influence brand consideration and reduce defection rates.
By studying garage histories (record of vehicles that individuals have owned over time) and lifestyle indicators, AI can map evolving ownership patterns across regions. This enables targeted communication that reflects preferences and builds lasting brand associations. Such efforts support loyalty, which is critical in a market defined by choice and agility.
How can PS help?
Automakers navigating a brand-agnostic EV market require better intelligence, not just faster production. PreScouter supports this by:
- Helping OEMs stay ahead of fast-changing buyer expectations by identifying which features (range, charging speed, tech integrations, etc.) actually influence brand-switching behavior.
- Tracking disruptive tech like wireless charging, battery-swapping, and next-gen infotainment.
- Assessing which technologies are reaching commercialization—and which are hype.
- Mapping partnerships and investments by fast-moving entrants like BYD and NIO.
- Providing teardown insights and efficiency comparisons across leading EV models.
- Identifying best-in-class product features and where gaps exist in your roadmap.
- Benchmarking agile innovation cycles used by competitors, including model refresh rates and tech rollouts.
