Carmax has released data indicating that Toyota owners are switching to EVs more frequently than owners of any other brand. Toyota has established a reputation for being reliable and environmentally friendly, especially after introducing the successful Prius hybrid. However, the company has focused mainly on hybrid technology, neglecting full EVs. Carmax’s report shows that Toyota owners are now trading for EVs more than any other brand. The report, initially reported by Jalopnik, reveals that Toyota owners represent a record 12% of customers trading from ICE to EV, making it the second consecutive year that Toyota has held this position. Ford and BMW follow closely in second place at 8%, and Honda at 7% of customers.
Carmax also provides insight into the types of EVs these customers are buying. Unsurprisingly, Tesla dominates the list, with the Tesla Model 3 being the most commonly traded for EVs, followed by the Tesla Model Y, Nissan Leaf, Ford Mustang Mach-E, and Chevy Bolt. If we narrow down our focus to the best-selling EV, the Tesla Model 3, the Honda Civic is the most frequently traded-in vehicle, followed by the Toyota Tacoma. Similarly, the most common traded-in vehicle for the Nissan Leaf, the most popular non-Tesla EV, is the Toyota Prius.
Shift to EVs
Last year’s report indicated that American Toyota customers were leading the way in the transition to EVs, and this trend has continued, as revealed in Carmax’s recent report. It is not surprising that Toyota owners are trading their vehicles for EVs more than any other brand, given Toyota’s reputation for reliability and eco-friendliness.
Toyota has been a dedicated player in the hybrid technology market for years, with the Prius being a prime example of the company’s success. However, this focus on hybrids has come at the expense of EVs, which Toyota has yet to fully accept and introduce. As a result, Toyota owners who are committed to eco-friendliness and sustainability are opting for EVs over other options.
Similarly, Honda owners are also leading the migration to Tesla’s EVs, demonstrating that the trend is not specific to one brand. The lack of viable EV options from Japanese automakers such as Toyota and Honda may also be pushing their customers towards other brands. While neither last year’s report nor Carmax’s report offered an analysis of why these particular customers are attracted to EVs, environmental concerns are likely a significant factor. As the world becomes more conscious of the effects of climate change and the importance of sustainability, the demand for environmentally friendly vehicles is on the rise. It remains to be seen whether Toyota and Honda will be able to catch up and provide more competitive EV options in the coming years.
Migration
A study published by S&P Global Mobility has shed light on the brands that are losing customers to Tesla when they make the switch to electric vehicles. Tesla is widely known for its ability to draw customers from other notable brands. The research has identified Toyota and Honda as the two brands that lose the most customers to Tesla, with over a quarter of all Tesla buyers coming from these two brands.
S&P’s report specifically found that 28.6% of customers who switched to Tesla came from Toyota (15.3%) or Honda (13.3%). In addition, German luxury brands BMW, Mercedes-Benz, and Audi accounted for roughly 17% of customers, with BMW making up the largest portion at 6.7%. Domestic brands like Ford and Chevrolet accounted for a smaller percentage of Tesla’s customer base, with 5.4% and 4.7% respectively. The study did not delve into the reasons why customers are switching to Tesla, but the brand’s focus on innovation, performance, and sustainability are likely to be factors in its appeal.