Researchers at IBM’s Institute for Business Value went straight to the source to determine the trajectory of hybrid vehicles in the global automotive market. These researchers spoke with 125 executives throughout the world including executives from the top 10 selling automotive brands to determine the future of sustainable transportation. The primary finding of these interviews was that most auto executives anticipate that every new car, truck and SUV offered in 2020 will feature some form of hybrid power.
The report entitled “Automotive 2020: Clarity Beyond the Chaos” indicates that the present preference for biofuels by auto executives will continue through the study’s target year. The study indicates that up to 65% of new cars and trucks produced in 2020 may run on biofuels produced from food and non-food stocks. Readers of the institute’s report will note that hydrogen-fueled vehicles are deemed a momentary fad by executives. Most executives who commented on hydrogen-powered vehicles noted the costs of massive infrastructure needed to sustain these vehicles after they leave car lots.
The driving force for pushing hybrid drive trains into car lots is consumer demand, according to a majority of participating auto executives. Many car companies are trying to create vehicles with “intelligent” features to meet the needs of drivers who are spending hours each day fighting traffic. These features range from additional entertainment options to active safety tools that notify drivers of accidents and traffic jams ahead. Auto executives feel that regenerative braking, fuel-efficient engines and performance monitoring in hybrid vehicles help meet these goals.
The most interesting aspect of IBM’s report was the consensus among auto executives that drivers are looking for “multi-modal transportation.” There is a feeling among the study’s participants that consumers will want a fuel-efficient car for commuting and other vehicles for errands and trips into the wilderness. This aspect of the report has taken place in small measure among upper-middle and upper class drivers who can afford Smart Cars in addition to traditional vehicles. In the end, however, it seems unlikely that this state of affairs will take hold among families with tight budgets who struggle to pay off their financed vehicles.
The Institute for Business Value concludes its report by offering five “imperatives” for automotive executives over the next decade. These imperatives include increased sophistication in vehicle financing, the transformation of retail spaces to facilitate hybrid vehicles and the need to implement fuel-efficiency changes on a global scale. The most crucial imperative recommended by the report is the standardization of electric systems and controls across different brands. This step may close the chasm between hybrid technology and consumers who are put off by overly complicated displays, controls and gadgets. Control and display standardization could also help reduce wasted energy by helping consumers understand the electricity and fuel they use during each trip.
