The B2B platform for full-electric and plug-in hybrid electric vehicles: Industry News

Two studies by Ernst&Young and ABF Morphologische Marktforschung, presented at the German EV Congress last week, gave valuable insights in market prospects and psychological aspects of electric mobility, triggering a lively discussion. Their conclusion: the Chinese will lead the way.

“Gauging interest for plug-in hybrid and electric vehicles in ley markets”

Mr. Jean-François Tremblay presented findings of the recent Ernst&Young study asking 4,000 drivers in the U.S., China, Japan and Europe to share their sentiments on vehicle electrification. Respondants were asked to reveal factors that may encourage or discourage them to purchase a plug-in electric vehicle (PHEV) or full electric vehicle (EV). The aim was to understand the level of consumer awareness of PHEVs and EVs as well as to filter out key considerations in purchasing such vehicles.  

The main findings of the survey revealed:

• a notable number of respondents are willing to consider the purchase of a PHEV or EV as soon as they are available on the market;
• despite substantial public interest, the awareness level of PHEV and EV technologies are still very low;
• influencing factors in the buying decision are similar across markets with, however, some local variations that would suggest customised vehicle introduction to different markets;
• although environmental considerations gain ground, economic considerations are still decisive;
• from all surveyed markets China shows the strongest interest for electric mobility;

One paradox has become evident in these findings: although there exist substantial interest and already a tangible demand for PHEVs and EVs in the market, the actual level of awareness and understanding of the technology by consumers is surprisingly low. China best demonstrates this fact with 60% of respondents (nearly 5 times more than in the U.S., Europe and Japan) saying they would buy an PHEV or EV as soon as it is available but over 50% admitting that they well have heard of the technology but do not exactly know what it is. In this light, Mr. Tremblay pursued that the Chinese EV market is very likely to grow the fastest but will be very difficult to understand.

On the other hand, more than 60% of all respondents of the study said that they were not likely to buy a PHEV or EV until the technology was well-established in the market. This highlights the importance of successful launches among early adopters and of communicating these success stories in the distinct markets. It also underlines the need for consumers to have hand-on experience with the vehicles in order to overcome their hesitance of buying one themselves.

Pro and contra

Fuel savings are clearly the most important argument for buying a PHEV or EV while environmental concerns and “bad conscious” for buying a polluting car slowly gain ground.

Most worried are people about:

• battery range
• access to charging stations
• vehicle prices performance and handling
• reliability
• lack of clear understanding of involved costs

Range anxiety is clearly the strongest stumbling block to a rapid uptake of electric mobility and reveals a second paradox: despite 92% of respondents driving less than 50 miles a day, 78% driving even less than 30 miles a day and only 2% (!) driving more than 100 miles per day, 60% insisted that a battery driving range of less than 100 miles is unacceptable.

“101 psychology of a technological change”

In the end of 2009 and beginning 2010, the Cologne market research institute AFB carried out a qualitative psychological study about customers' perspective towards e-mobility, trying to explore the paradox of car drivers demanding a product which is only about to be launched and which may not even be able to meet the customers' needs.

In personal interviews which lasted up to three hours, car buyers with an affinity towards EVs were asked for their motivation and interests in alternative drive concepts. The subsequent analysis was done with the help of in-depth psychological methodologies. The aim was to understand key drivers as well as fields of tensions faced by car buyers when dealing with a technological change towards EVs.  

Mr. Peter Franken from ABF explained the motives and principles of potential EV drivers that have become apparent in the study. He emphasised that an impending “loss of drive” in various dimensions - from the car, to ecological and economic crisis, to the “way of life” and the value-framework of our times - makes car buyers consider new solutions. The success, however, will not only depend on sophisticated products and customer-friendly prices but also on the development of a new mobility culture.

Conclusions

So apparently, the technological change can only happen hand in hand with a psychological change. The problem for EV manufacturers is that they can very well provide the technology for enabling the shift but many influencing factors on the market uptake are out of their sphere of influence.

This leads over to one point Mr. Jean-François Tremblay had made during his presentation. Players in the field of electric mobility will have to collaborate, he said, those standing alone will not succeed. Considering the many factors playing together in the envisaged technology shift, efforts from all sides will need to be combined: politics, divers industry sectors (automotive as well as energy and IT), associations and civil society pulling on one string.