This year, only a third of pure electric cars purchased in Lithuania were new. And although the small market of our country will not have a big impact on global demand trends, it is precisely on public attitudes and the desire to engage in transport electrification that it depends on whether Lithuania will achieve the strategic goals of switching to renewable energy sources and lower greenhouse gas (GHG) emissions.
Little experience, but a long list of fears
Currently, the number of pure electric vehicle registrations in Lithuania is about 1.5 times higher than a year ago. However, the share of electric cars in the entire national transport fleet is less than one percent. October 1 of this year. according to data, 15.2 thousand were registered in the country. pure electric cars, and the number of plug-in hybrids reached 10.7 thousand.
The slowdown of the market in Western Europe, from which most cars are imported to Lithuania, reflects both economic and technological challenges in the European Union, as well as consumer preferences.
Periodically, the global EY Mobility Services User Index (angl. Mobility Consumer Index) research this year revealed that consumers identify a small selection of affordable models, long charging times, anxiety about the distance to be covered, underdeveloped infrastructure, and fear of high operation and maintenance costs as the biggest obstacles to progress. Finally, consumers lack clarity about the residual value prospects of EVs. Other studies in Lithuania reflect similar fears.
The national transition to electric cars is part of an important transformation
The public’s doubts about electric cars somewhat darken the background for this year’s renewed energy independence strategy of the state. The document notes that the state aims for decarbonization of the transport sector, therefore it is very important to increase the share of renewable energy resources (RES) in the final energy consumption balance of the transport sector, as well as to reduce the amount of greenhouse gas emissions in the transport sector.
in 2022 in the transport sector, the share of RES in the final energy consumption was 6.28 percent. It is stipulated that it must increase 2.5 times – to at least 15.8 percent. in 2030. In addition, it is clear from the National goals for the growth of the number of electric cars that the electrification of transport in Lithuania must proceed exponentially, and the transition to electric cars is an important axis of the desired progress.
There are currently over 1.83 million vehicles in the Lithuanian transport fleet. passenger cars. Some of them belong to residents, some to business enterprises and the public sector. Thus, the portraits of vehicle owners and users are very different. However, they need to be defined and understood because the success of a massive transformation depends on each user group, their interactions and influences.
How is the attitude towards electric cars changing?
This year’s EY Mobility Services User Index study notes that in order to regain momentum, manufacturers and vendors should distinguish between controllable and uncontrollable factors, such as the geopolitical environment or macroeconomic processes. One of the most important aspects that the industry must constantly research, understand and track is the changing consumer attitude towards electric cars. For many potential buyers, electric cars are a relatively new and little-known technology. On the other hand, real consumer experience is growing rapidly in major European markets, and all of this is shaping and changing attitudes.
In the EY mobility service user index, European users are divided into groups according to their positions: from electric car enthusiasts to skeptics. The proportions of the groups this year were arranged in such a way that the curve became similar to the classic bell shape – it corresponds to a sociological model depicting the adoption or recognition of a new product or innovation according to the demographic and other characteristics of the population groups.
Thus, the largest proportion of users are classified into the “considering” and “convincing” groups. The share of electric car enthusiasts is similar to that of skeptics, with about one in five “reluctants”.
Analyzing European data, it is noticeable that the share of enthusiasts has even decreased slightly during the year, which may be a sign that manufacturers and sellers have already “cut off the lowest hanging fruit”. So now we will have to focus more on less enthusiastic and even hesitant customers. For the latter, perhaps, it is especially important to emphasize the price element, which should be considered as the costs of the entire product life cycle, because the availability of electric cars is constantly improving with technological development, subsidies can be used, charging costs at home are very small, and operating costs are significantly lower than internal combustion. motor vehicles.
In summary, the slowdown in EV sales signals a new stage of market maturity and the need to build relationships with larger consumer groups that perceive the value of EVs differently than tech enthusiasts. Also realize that these groups are plagued by various unfounded fears and are oblivious to progress, such as the increasing number of charging stations for electric cars.
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Interview with Dr. Lina Žygienė, Transportation Policy Expert
Editor: Thank you for joining us today, Dr. Žygienė. Let’s start with the current landscape of electric vehicles (EVs) in Lithuania. We’re seeing that only a third of pure electric cars purchased this year were new. What do you think is driving this trend?
Dr. Žygienė: Thank you for having me. Yes, it’s true that a significant portion of electric cars purchased in Lithuania are used rather than new. This stems from a combination of factors, including economic constraints and a limited selection of affordable models. Many consumers are still hesitant to invest in new technologies and lean toward used vehicles, which they perceive as lower risk.
Editor: The statistics reveal that the share of electric vehicles in the national transport fleet is still less than one percent. What barriers do consumers face that might explain this figure?
Dr. Žygienė: The barriers are multifaceted. Research indicates that consumers express concerns about several factors: the availability of charging infrastructure, long charging times, and the overall cost of ownership. Additionally, there’s a prevailing anxiety around the range of electric vehicles and their residual value. These fears contribute significantly to consumer reluctance to fully embrace electric cars.
Editor: With Lithuania’s goal of a 2.5-time increase in renewable energy sources in the transport sector by 2030, how crucial is public perception in achieving these strategic goals?
Dr. Žygienė: Public perception is absolutely pivotal. If citizens don’t view electric vehicles as a viable option, we won’t see the mass adoption needed for Lithuania to meet its decarbonization targets. The government and industry must work together to change attitudes through education, infrastructure development, and showcasing the benefits of EVs.
Editor: You mentioned earlier the varied attitudes towards electric cars identified in the EY Mobility Services User Index. Can you elaborate on that?
Dr. Žygienė: Certainly. The user index shows a typical adoption curve, where the population is divided into enthusiasts, cautious supporters, and skeptics. Interestingly, the “considering” and “convincing” groups are the largest, indicating that many consumers are on the fence and just need more information or incentive to make the switch.
Editor: What strategies would you recommend for manufacturers and vendors to better engage these potential buyers?
Dr. Žygienė: Manufacturers need to focus on addressing controllable factors, such as enhancing the charging infrastructure and providing clear information on cost savings and benefits. They should tailor their marketing strategies to highlight real user experiences and testimonies to help demystify electric vehicles. Additionally, incentives or subsidies can play a substantial role in bridging the gap for hesitant buyers.
Editor: as we look to the future, what do you see as the next steps for Lithuania in terms of electric vehicle adoption and transport electrification?
Dr. Žygienė: The next steps should include a robust overhaul of our charging infrastructure, targeted educational campaigns, and incentives for both consumers and businesses to adopt electric vehicles. Moreover, collaboration between public sector entities and private companies will be critical in shaping a conducive environment for electric vehicle growth and aligning with our environmental goals.
Editor: Thank you, Dr. Žygienė, for your insights on the electric vehicle landscape in Lithuania. It’s clear that addressing consumer fears and enhancing infrastructure are critical moving forward.
Dr. Žygienė: Thank you! It’s an important topic, and I hope we can continue to spark conversation and action in this area.
Editor: What strategies would you recommend for manufacturers and vendors to better engage these potential buyers?
Dr. Žygienė: Manufacturers and vendors need to adopt a multifaceted approach. First, they should focus on educating consumers about the actual lifecycle costs and savings associated with electric vehicles, emphasizing lower operating costs over time. Second, they should expand the range of affordable models to cater to budget-conscious buyers. Lastly, strengthening charging infrastructure is essential; easy access to charging stations can significantly reduce range anxiety and improve consumer confidence in electric vehicles.
Editor: In light of the challenges you mentioned, how do you see the future of electric vehicles in Lithuania?
Dr. Žygienė: I believe that the future largely depends on how effectively we tackle the existing barriers and reshape public perception. While the transition may be slow initially, continuous advancements in technology and a concerted effort from both the government and industry stakeholders can lead to a significant shift in attitudes. If we address consumer fears, improve infrastructure, and make electric cars more accessible, we could potentially see a rapid increase in adoption rates in the coming years.
Editor: Thank you, Dr. Žygienė, for your insights into the challenges and opportunities within the electric vehicle market in Lithuania.
Dr. Žygienė: Thank you for having me. It’s been a pleasure discussing such an important topic.
