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JD
Power Sees Growth of Hybrid-electric Vehicle Market |
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AGOURA
HILLS, Calif.—With 30 percent of new-vehicle buyers indicating that they
would "definitely" consider a hybrid electric vehicle and
another 30 percent indicating a strong consideration, hybrid vehicle
technology is getting a solid "green light" from consumers,
especially among women, according to the J.D. Power and Associates Hybrid
Vehicle Consumer Acceptance Study.SM The study
provides answers to three core industry questions about hybrid vehicles:
1) In which vehicle segments do consumers want hybrids offered; 2) What
will cause them to purchase; and 3) How much are they willing to pay? Survey
respondents overwhelmingly indicate that they want a hybrid powertrain
option in the same segment as their current vehicle. For example, a hybrid
SUV is the most popular first choice vehicle segment for a hybrid option
among current SUV owners, while a minivan hybrid is the first choice among
minivan owners. However, regardless of the vehicle they currently own,
nearly all consumers surveyed select a midsize car as their second most
popular choice for a hybrid. "A
hybrid option in the high-volume midsize car segment would provide
manufacturers a broad-based growth path to the mainstream market,"
said Thad Malesh, director of the alternative power technology practice at
J.D. Power and Associates. Concern
over fuel prices, the high level of U.S. dependency on foreign fuel
supplies, a federal tax incentive and concern for the environment are the
primary motivators behind consumer consideration to purchase a hybrid
vehicle. The number
one reason for considering a hybrid is concern over high fuel prices, and
a detailed analysis of fuel prices indicates that as expected, consumer
interest in hybrid vehicles increases as gasoline prices rise. Though
price and costs play a critical role in the acceptance of hybrid vehicle
technology, the study shows there is a greater willingness to pay for
hybrid vehicles than previously believed. Consumers expect to pay more for
a hybrid than they would for a traditional gasoline-engine vehicle. Some
consumers, such as small car owners, are willing to pay more than other
buyers. Of those who would consider a hybrid electric vehicle, nearly
one-third indicate they would still buy one even if the savings from
reduced fuel costs during their ownership period would be less than the
extra cost of purchasing the hybrid option. Consumers
also indicate that their appetite for hybrids would increase if the
federal government helped offset some of the additional costs. Consumers
not only see a federal tax credit as important to their decision to
purchase a hybrid, they also expect the credit to be nearly equal to the
additional cost for the hybrid option over that of the gasoline-engine
version. While
women tend to be substantially more interested in hybrids than men, the
lack of available information and education is the main barrier for
purchasing one, according to female respondents. "Women
are definitely interested in hybrid vehicles but are deferring their
decision to purchase because they don’t know enough about them,"
Malesh said. "Manufacturers should be working to better educate
consumers on hybrid technology, especially among women." On the
other hand, male new-vehicle buyers surveyed also indicate a strong
interest in hybrids but are concerned that these vehicles will lack strong
performance. "The
lack of consumer understanding underscores the challenges automakers face
in gaining acceptance of hybrid technology," Malesh said. "Many
people still think hybrid vehicles are the small, expensive, limited-range
electric vehicles that they saw or heard about in the 1990s. Approximately
two years after the launch of the first hybrids in the United States,
nearly one-half of the survey respondents still incorrectly believe a
hybrid vehicle needs to be plugged in to recharge the battery pack." In
comparing consumer expectations of hybrid vehicle acceleration, fuel
economy and emission levels with those of a gasoline-powered vehicle,
respondents clearly show a need for more information about hybrids.
Respondent comfort levels with various hybrid vehicle operating
features—such as idle-off at a stoplight, higher voltage batteries and
consumer expectations regarding the length of the battery pack
warranty—highlight additional educational requirements. Overall,
the introduction of two gasoline-electric hybrid models into the U.S.
market has increased awareness of hybrid technology. The Honda Insight and
Toyota Prius, as well as other announced hybrids such as the Ford Escape,
have fueled this awareness of hybrid technology to more than 80 percent of
new-vehicle buyers surveyed. These first-in-market introductions have
given Honda and Toyota the clear lead among new-vehicle buyers as the most
technologically advanced manufacturers in the development of
environmentally friendly vehicles. The
results of this consumer-based study support the sales outlook outlined in
a separate J.D. Power and Associates hybrid vehicle forecast, in which
hybrid sales are expected to increase dramatically in the next few years
and approach 500,000 vehicles per year shortly after mid-decade. "We
expect to see as many as 20 hybrid vehicle models, including cars, trucks
and SUVs, at dealerships and on the road in the next four to five
years," Malesh said. The Hybrid
Vehicle Consumer Acceptance Study is based on responses from more than
5,200 recent new-vehicle buyers. Headquartered
in Agoura Hills, Calif., J.D. Power and Associates is a global marketing
information services firm operating in key business sectors including
market research, forecasting, consulting, training and customer
satisfaction. The firm’s quality and satisfaction measurements are based
on actual responses from millions of consumers annually. J.D. Power and
Associates can be accessed through the Internet at www.jdpa.com. Media
e-mail contact: john.tews@jdpa.com or michael.greywitt@jdpa.com. |
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