Tuesday, June 18, 2024

Small businesses considering the potential of EVs

Many Australian SMEs are looking at investing in electric vehicles (EV) to meet certain expectations and to boost brand credibility.

According to an independent panel of 202 business owners and decision-makers by business loan comparison site Small Business Loans Australia:

  • 39% of respondents would choose to invest in EVs to meet customer or employee expectations
  • 30% would make the switch in an effort to boost brand credibility

Why?

The competitive nature of the Australian SME scene means businesses are conscious of their brand perception and are looking for ways to improve their credibility, says Small Business Loans Australia.

“With 62% of [surveyed] customers saying they feel an emotional connection with the brands they buy, it’s essential that businesses are in tune with the beliefs of their customers to form and nurture a connection,” the company adds.

In addition to meeting customer or employee expectations and boosting brand credibility, the new research found:

  • 28% of respondents want to be seen as ‘early adopters’
  • 16% of respondents would invest purely because they see the purchase of petrol vehicles as a ‘bad look’
  • 32% of respondents are of the view that petrol cars have a limited lifespan and would opt for an EV to ensure a longer lifespan

Small Business Loans Australia analysed responses across the major states. It found that South Australian businesses are the most likely to embrace EVs to boost brand credibility and relevance, with 39% of respondents agreeing, followed by West Australian businesses (36%), one-third (33%) of the Victorian businesses surveyed and 29% of the NSW businesses surveyed.

Australia-wide, businesses would consider investing in EVs due to the longer lifespan compared to petrol cars, with Queensland businesses leading the way at 37% of the respondents. This is followed by 35% of surveyed businesses in Victoria and South Australia and just over one-third of surveyed businesses in Western Australia (34%).

A large proportion (42%) of surveyed businesses in NSW and WA would invest in EVs in order to meet the expectations of their employees, followed by Victoria and SA (40%) and 28% of the Queensland businesses surveyed.

When it comes to meeting the expectations of their customers, half of the businesses surveyed in NSW would make the switch to EVs, followed by 46% of the South Australian businesses surveyed, 41% of the Western Australian businesses surveyed, over one-third (35%) of the Victorian businesses surveyed and 28% of the Queensland businesses surveyed.

Helping solve the climate crisis

Almost three-quarters of businesses surveyed (71%) believe purchasing EVs over petrol cars will help alleviate the current climate crisis.

44% of the business owners surveyed believe the switch will have a “small impact” and 27% believe there would be a “significant impact” in the reduction of emissions.

29% of business owners surveyed don’t believe the climate crisis can be helped with the purchase and use of EVs.

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