The Surprising Demand for Three-Row EV Crossovers: Will Buyers Get What They Want

The landscape of electric vehicles (EVs) is always evolving, and new insights from AutoPacific have just shed light on an intriguing demand that many manufacturers might be overlooking. In their 2024 Future Vehicle Planner, AutoPacific reveals that nearly half of all surveyed three-row crossover and SUV buyers would consider making the leap to an all-electric model. This significant shift in interest comes at a time when the EV market is in a transitional phase, marked by a notable deficiency in affordable options for families seeking spacious electric vehicles.

The Current State of the Market

As of now, the three-row EV crossover market comprises only seven available models: the stylish Volvo EX90, the innovative VinFast VF9, the flagship Tesla Model X, the rugged Rivian R1S, along with the luxury Mercedes-Benz EQS SUV and EQB SUV, and finally the budget-friendly Kia EV9. However, buyers are craving more than what is currently offered. By filtering out models that are either prohibitively expensive or lack adequate space, particularly in the third row, the Kia EV9 stands out as a viable candidate for families. The anticipation grows for more options set to debut next year, including the highly anticipated Cadillac Escalade IQ, Lucid Gravity, and Hyundai Ioniq 9. This momentum suggests a compelling opportunity in the market.

Rumblings of Change

AutoPacific’s comprehensive study, which surveyed over 14,000 vehicle shoppers, paints a clear picture. Approximately 8% of potential buyers expressed a firm intention to purchase an all-electric three-row crossover. What’s particularly noteworthy is the desire for affordable options. In fact, 59% of these buyers are looking to spend less than $50,000 on their vehicle. Currently, the only candidates truly fitting into this bracket are the Mercedes-Benz EQB and Kia EV9, the latter of which has recently seen healthy sales. With a growing interest in eco-friendly options, families are actively exploring alternatives that do not compromise on space or budget.

Future Forecast: A Growing Segment

AutoPacific projects a robust growth trajectory for the three-row electric crossover segment, predicting that annual sales will leap from around 100,000 units in 2024 to an astounding 400,000 units by 2029. “All-electric three-row SUVs and crossovers are set to become one of the most important growth segments in the EV space,” states Ed Kim, AutoPacific’s president and chief analyst. This growth could spell trouble for manufacturers that might underestimate the demand for spacious electric vehicles. For instance, Ford's recent decision to terminate their three-row EV crossover development might not align with the market’s burgeoning preferences.

The Ideal Buyer Profile

Interestingly, the study identifies the archetypal buyer of a three-row electric SUV. The ideal customer tends to be a single female who lives in a single-family home and typically drives less than 30 miles a day. This persona is generally proactive about acquiring a home EV charging installation, highlighting the allure of modern car technology combined with the green credentials of electric vehicles. Yet, these savvy consumers are not willing to compromise on convenience, space, or features. Successfully catering to this demographic mandates a meticulous consideration of product offerings by manufacturers.

What Lies Ahead?

As manufacturers gear up to innovate and expand their EV lines, the onus is on them to respond to the clear call from consumers. The potential for carving out a lucrative niche in the three-row EV segment remains vast. Stakeholders need to invest in research, development, and marketing strategies aimed at delivering affordable, spacious, and eco-friendly alternatives to the market. The future seems bright for three-row electric vehicles; the question is whether manufacturers can capitalize on this golden opportunity to align with consumer desires.

Conclusion

The results from AutoPacific’s study unveil a compelling narrative of potential growth in the three-row EV crossover market. As more consumers become conscious of their vehicle choices and the impact on the environment, the demand for spacious, affordable electric options will only continue to rise. The onus lies upon manufacturers to meet this demand, unleashing a wave of innovations that will undoubtedly change the automotive industry landscape.