MEDIA RELEASE
6 September 2023
- Study finds 39% of businesses would buy an EV to meet customer or employee expectations
- 30% would switch to an EV to boost their brand credibility and relevance
- 28% would make the switch so their brand and people are seen as early adopters
With eco-conscious consumers on the rise, businesses are faced with corporate social responsibility challenges that relate to the current climate crisis and whether electric vehicles can aid in fulfilling this obligation. From January to June this year, 8.4 per cent of new vehicle purchases were electric, already a 120.5 per cent increase from last year[1]. New research reveals that more than one-third (39%) of Australian SMEs would choose to invest in electric vehicles to meet customer or employee expectations and 30 per cent would make the switch in an effort to boost brand credibility.
These figures have been revealed in a new survey of an independent panel of 202 business owners and decision-makers by business loan comparison site Small Business Loans Australia. The full survey results, including breakdowns across business sizes and states, can be found here: https://smallbusinessloansaustralia.com/ev-cars-improve-brand-image/
Why are businesses investing in EVs?
The results show that a large proportion of businesses are willing to switch to eco-friendly vehicles for reasons beyond government incentives and reducing environmental impact. 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. With 62 per cent of customers saying they feel an emotional connection with the brands they buy[2], it is essential that businesses are in tune with the beliefs of their customers to form and nurture a connection.
In addition to the 39 per cent of businesses investing in electric vehicles to meet expectations, 30 per cent of business owners would make the switch to boost brand credibility and relevance, and 28 per cent of businesses want to be seen as ‘early adopters’. A modest percentage (16%) would invest purely because they see the purchase of petrol vehicles as a bad look. Furthermore, 32 per cent of those surveyed are of the view that petrol cars have a limited lifespan and would opt for an electric vehicle to ensure a longer lifespan. Furthermore, 32 per cent of those surveyed are of the view that petrol cars have a limited lifespan and would opt for an electric vehicle 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 electric vehicles to boost brand credibility and relevance, at 39 per cent, followed by West Australian businesses (36%), one-third (33%) of Victorian businesses and 29 per cent of businesses in New South Wales.
Australia-wide, businesses would consider investing in electric vehicles due to the longer lifespan compared to petrol cars, with Queensland businesses leading the way at 37 per cent. This is followed by 35 per cent of businesses in Victoria and South Australia and just over one-third of businesses in Western Australia (34%).
A large proportion (42%) of businesses in New South Wales and Western Australia would invest in electric vehicles in order to meet the expectations of their employees, followed by Victoria and South Australia (40%) and only 28 per cent of Queensland businesses.
When it comes to meeting the expectations of their customers, half (50%) of businesses in New South Wales would make the switch to electric vehicles, followed by 46 per cent of South Australian businesses, 41 per cent of West Australian businesses, over one-third (35%) of Victorian businesses and 28 per cent of Queensland businesses.
Alon Rajic, Founder and Managing Director of Small Business Loans Australia, says: “While each state has their own needs and goals, it is evident that businesses are ready to make the switch to electric vehicles for several reasons. In an economic climate where businesses are striving to gain new customers and retain current staff, as well as bearing a corporate social responsibility around sustainability, investing in electric vehicles is an effective way to achieve those goals.”
Do businesses think EVs will help solve the climate crisis?
New data reveals that almost three-quarters of businesses (71%) believe purchasing electric vehicles over petrol cars will help alleviate the current climate crisis, with 44 per cent of business owners believing the switch will have a small impact and 27 per cent believing there would be a significant impact in the reduction of emissions. Only 29 per cent of business owners do not believe the climate crisis can be helped with the purchase and use of electric vehicles.
At a state level, the research found business owners in NSW hold the greatest belief that electric vehicles will contribute to combatting the climate crisis at 78 per cent, followed closely by 77 per cent of South Australian businesses, 73 per cent of West Australian businesses, 98 per cent of Victorian businesses and 65 per cent of Queensland businesses.
“Our research shows most businesses surveyed believe electric vehicles will contribute towards a climate change solution. Businesses should consider making the switch to electric vehicles for their company fleets and encourage employees to do the same through novated leasing and other purchase avenues,” shares Alon.
The full survey results, including breakdowns across business sizes and states, can be found here: https://smallbusinessloansaustralia.com/ev-cars-improve-brand-image/
Advice Disclaimer
This article is intended to provide general information only, and not financial advice. Before acting on any information in this article, you should consider your individual and business circumstances, and seek independent and professional legal, financial, taxation or other advice to help you determine whether these actions are appropriate for your needs.
About Small Business Loans
Small Business Loans Australia (smallbusinessloansaustralia.com) is an Australian comparison website providing Australian small and medium business owners with information on the different types of financing options and loans offered by Australian lenders, and how alternative lenders differ from banks. Small Business Loan Australia works with more than 30 Australian lenders and provides loans from $5000 to $1 million. For more information, visit smallbusinessloansaustralia.com)
Key Facts:
- 39% of businesses would buy an EV to meet customer or employee expectations
- 30% would switch to an EV to boost their brand credibility and relevance
- 28% would make the switch so their brand and people are seen as early adopters
Contact details:
Gillian Morgan | 0447 254 662 | gmorgan@theideassuite.com.au
Courtney Trewin | 0420 211 251 | ctrewin@theideassuite.com.au
