Tesla Steals the Most Customers From Honda and Toyota, Not Selling EVs is Clearly Costly

A recent study by S&P Mobility shows that electric vehicles have gained market share in the U.S., reaching 5.2% of all light vehicle registrations - according to S&P Global Mobility data. In this context, the brands that suffered the most during 2022 were those late in selling EVs, especially Honda and Toyota.
Tesla steals most customers from Honda and Toyota 6 photos
Photo: Tesla
Tesla steals most customers from Honda and ToyotaTesla steals most customers from Honda and ToyotaTesla steals most customers from Honda and ToyotaTesla steals most customers from Honda and ToyotaTesla steals most customers from Honda and Toyota
One of the key takeaways from the S&P Mobility study is that Tesla’s market share is shrinking in the EV market. This is, of course, true, as more carmakers release electric models into the market. But Tesla is not in danger of losing the long game unless its rivals can suddenly increase EV production capacity to surpass Tesla. The EV-only carmaker might shed the most market share to carmakers at the lower end of the market, where it doesn’t even compete.

Nevertheless, the opposite is also true, and Tesla is poised to cut market share from established carmakers when it comes to overall sales. The study shows that the Model Y has 60.5% brand loyalty, and nearly 74% of buyers come from outside the brand, the highest conquest rate in the industry. But what are the brands that bleed market share to Tesla?

According to the S&P Mobility study, around 28.6% of Tesla’s customers came from either Toyota (15.3%) or Honda (13.3%). Both Japanese carmakers stubbornly refused to consider playing the EV card until it was too late. Toyota’s first EV, the bZ4X, had tarnished its reputation after a recall and especially after customers in cold climates discovered that its real-world range was roughly half the advertised range.

Nevertheless, the bigger picture shows that most customers left brands that don’t sell that many electric vehicles. Brands like Ford, Chevrolet, Hyundai, and Kia, with a strong presence in the EV market, fared much better than the Japanese brands. Together with Volkswagen and Nissan, they also dominate the non-luxury EV market, where Tesla has yet to release a competitor.

It’s not just Honda and Toyota that bled market share to Tesla, but also the German luxury carmakers. BMW, Mercedes, and Audi combined for 17.3% of Tesla’s conquests. Fewer customers came from Ford (5.4%) and Chevrolet (4.7). The effects of these trends are most visible in the luxury EV segment, which Tesla controls with 86% market share. The overall EV market share of 65% is still impressive, although it has shrunk from 79% in 2020.
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About the author: Cristian Agatie
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After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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