With U.S. gas prices continuing to spike, more consumers are expected to look to vehicles with clean diesel engines or hybrid-electric powertrains, according to the J.D. Power and Associates' 2004 Consumer Acceptance of Alternative Powertrains Study(SM) released recently.
The study of 7,126 consumers who purchased new light vehicles in the past three years found that more than 75% of respondents expressed an awareness of hybrid-electric powertrain technology, while 40% indicated an awareness of clean diesel engine technology. Among respondents who owned a conventional light vehicle with an internal-combustion engine, 57% said they are "very" or "somewhat" familiar with hybrid-electric powertrain technology, while 39% expressed similar familiarity with clean diesel engine technology.
Consumers expressed interest in clean diesel engines for their power or torque and for proven technology. Yet, they also showed concerns over maintenance costs and the availability of repair and service locations. Consumers also liked hybrid-electric powertrains because they felt that they were better for the environment, but the worried about hybrid-electric reliability, life of the battery pack and acceleration performance.
On average, study respondents indicated that they expected the price they pay for a gallon of gas to rise by 2% per year. However, about one quarter of these vehicle owners expected fuel prices to rise by 6% or more each year.
"The faster a consumer expects fuel prices to rise, the more likely they are to buy a vehicle with a hybrid-electric powertrain or a clean diesel engine," McManus said. "Still, most consumers want to see the up-front costs of purchasing a hybrid or clean diesel offset by the fuel savings."
The premium for purchasing a new light vehicle with a clean diesel engine averages approximately $2,500, and the premium for a hybrid-electric powertrain averages approximately $4,000, according to the study. Most consumers would have to own such vehicles several years before recovering their investment through fuel savings.
"While consumer demand for clean diesel engines exceeds demand for hybrid-electric powertrains, we're still at least two years away from the first clean diesel engines coming to market," McManus said. "Even then, manufacturers appear to be planning fewer clean diesel-powered models than hybrids, thus clean diesel sales will lag hybrid sales for at least the next several years."
Source: J.D. Power and Associates/PRNewswire