Order Reprints

Auto Focus

By Julie Cridler
Senior Market Analyst, IRN Inc.
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Initial sales results of the electric vehicles currently on the market have been lukewarm thus far. There are various reasons behind these figures, one of which is that it may just be too soon for consumers to really know how they feel about these high-tech vehicles. Conflicting reports in the media make it even more difficult to get a read on consumer sentiment and thus the potential future for electric vehicles as a mainstream segment of the automotive industry.

The results of a recent USA Today/Gallup poll were splashed in the headlines proclaiming “Americans say ‘no’ to electrics despite high gas prices.” According to the results of the survey, 57 percent of Americans say they will not buy an electric car [pure electric] no matter how high the price of gas becomes. The poll was conducted from May 12-15, 2011 when the national average for gasoline was ranging around $3.98. Well that certainly seems like depressing news for the electric vehicle industry. Or is it? Ultimately, it depends on how you interpret the results and those of other similar surveys and reports.

Two other surveys released in the same general time frame, pronounce different results than those of the USA Today/Gallup poll. Headlines from a Consumer Reports survey, just a couple weeks prior, headlined “Car buyers want better fuel economy and are willing to pay for it.” Another headline, from a press release announcing a research study from Accenture, announces “Consumers ready for plug-in electric cars.” Interestingly, one question in the Accenture study asked whether consumers would consider electric vehicles (plug-in or full electric) as an option for their next car purchase. In the United States, 57 percent of the respondents gave a positive response. The stark comparison to the USA Today/Gallup poll results is likely due to the fact that the Accenture survey question included plug-in hybrids while the Gallup poll was referring solely to pure electrics.

The research report by Accenture (Plug-in Electric Vehicles: Changing Perceptions, Hedging Bets) helps to identify some of the main concerns consumers have regarding electric vehicles as well as the level of importance consumers place on certain attributes of the electric car experience. The study identified that the most important consideration (overall, of the global survey population) was the cost of charging an electric or plug-in hybrid electric versus the cost of filling the gas tank of a conventional vehicle. Another factor that received high ranking was the time needed to charge an empty battery. It is interesting that in this study consumers ranked the total cost of purchasing and maintaining the electric vehicle compared to a traditional car relatively low in the spectrum of concerns. It has been conventional wisdom that a charging infrastructure would need to be in place before EVs become widely accepted. However, in the Accenture study, two-thirds of the respondents indicated a preference for charging at home meaning a public infrastructure would be less necessary.

Another separate research study, conducted by the University of Delaware (with a smaller sample size than the Accenture survey) sought to identify the most important electric car attributes for consumers. From this particular survey, those are: driving range, fuel cost savings and charging time. So, there are some similarities in the attributes although they are ranked in importance a bit differently here.

Some other elements important in the electric vehicle acceptance equation had more to do with the demographics of the buying population rather than the actual vehicle characteristics and attributes. For example, the University of Delaware (UD) team found that the likelihood of a consumer buying an electric vehicle increased in accordance with factors like youth, education and an environmental lifestyle, while income was less important. The UD team concluded from their research that today’s electric vehicles, even with their limited driving range, could comprise a large enough market for substantial sales if they are marketed correctly to appropriate segments of the driving population.

These are just a few studies covered here, and there are undoubtedly many more like them which will conclude that different factors are more or less important. The key takeaway from all these studies and results is that electric vehicles are still a very new concept to consumers, and many car buyers actually know very little about them. As the education process continues and technology advances, future consumers may find electric vehicles much less scary. But, it is going to be a while before consumers feel completely comfortable with the concept and also have experience driving and understanding the vehicles.

Until that day, we will continue to see conflicting messages in the media and buyers will continue to have mixed emotions about this new category of transportation.

  Order Reprints

TAGS:

• auto focus
• column
• irn
• julie cridler
• manufacturing