Automakers and dealers face a new challenge as the electric vehicle market evolves: retaining customers who are increasingly willing to switch brands when purchasing a battery electric vehicle (BEV).
First things first: Recent research from Escalent's 2026 Brand DeepDive report, part of its EVForward study, reveals that current EV owners are the least brand-loyal segment of new-vehicle buyers.
Just 46% of current EV owners say they are likely to purchase their next vehicle from the same brand, compared with 60% of EV Intenders, 65% of EV Open buyers and 68% of EV Resistant buyers.
EV Intenders, identified through Escalent's proprietary algorithms, are more than 15 times as likely to purchase an EV as the average new-car buyer.
Brand switching is particularly prevalent among households owning both electric and non-electric vehicles, with 93% purchasing their BEV from a different brand than their non-BEV vehicle.
Technology and software were the leading reasons for switching brands, cited by 32% of respondents, followed by performance and battery trust (20% each) and confidence in the charging experience (18%).
Digging deeper: One of the study's most significant findings is the widening gap between overall brand consideration and BEV-specific brand consideration, with Tesla losing ground in a key area.
While Tesla remains tied with Toyota as the most-considered BEV brand, its overall brand consideration has declined considerably since Escalent conducted similar research in 2023, particularly among EV Intenders.
Meanwhile, Toyota continues to benefit from strong consumer perceptions of trust, value and loyalty.
Toyota, Hyundai, Subaru and Honda ranked among the strongest brands for customer loyalty, while Tesla owners were considerably less likely than the average buyer to purchase from their current brand again.
What they’re saying: "Tesla's BEV lineup is respected, but the brand is losing strength," K.C. Boyce, vice president of Automotive & Mobility at Escalent, told CDG News, via email. “On the other hand, Toyota has the strongest overall brand consideration and leads on trust, value, and loyalty. That strength extends to its BEVs, creating a halo and competitive advantage.”
Why it matters: Weak brand loyalty among EV owners creates conquest opportunities for dealers, while established automakers can leverage existing customer relationships to retain buyers transitioning to electric vehicles.
However, Boyce noted that turning those opportunities into sales will depend on offering competitively priced BEVs with the range, technology, and features shoppers expect.
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Between the lines: Affordability could shape the next wave of EV brand loyalty, giving dealers an opportunity to win customers through education and greater EV awareness, per Nikki Stern, Senior Insights Manager at Escalent.
As the EV market expands beyond early adopters, affordability is becoming increasingly important to purchase decisions and customer retention, Stern explained.
Escalent's research indicates that EV Intenders expect to spend less on their next vehicle than current BEV owners, potentially increasing pressure on automakers to offer more affordable electric models.
The discontinuation of the federal EV tax credit could further intensify price competition, although the Brand DeepDive study did not directly measure the impact of its elimination, Stern noted.
"These buyers may be more inclined to stay loyal if the brand offers a compelling, lower-priced BEV. If their current brand doesn't offer an affordable model, they may look elsewhere," said Stern, via email, adding, "With the federal tax credit discontinued, I'd expect brands that fill the gap with a strong manufacturer incentive to attract shoppers and hold on to their existing customers."
Bottom line: As EV brand loyalty becomes less predictable, dealers have an opportunity to win customers beyond their traditional brand base, with success increasingly depending on affordable, competitive products and the ability to communicate value, technology, and ownership benefits to buyers.
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