Consulting firm Accenture recently issued a report indicating
stricter standards by consumers in regards to green vehicles. One conclusion drawn from this report was
that only 36% of respondents cited fuel prices as a compelling reason to
purchase green vehicles. Another takeaway from Accenture’s report is that half
of respondents would not pay a price premium to purchase a hybrid or electric
car over a traditional car. The firm contacted 1,800 individuals from Germany,
France, Italy, Canada and the United States evenly distributed by gender and
age.
The averages emerging from the Accenture report indicate
that consumers are less interested in hybrids thanks to lowered fuel prices.
The study found that 60% of respondents would only choose hybrid models over
traditional models if it were superior in fuel economy, ride, performance and
style. This question dovetailed with 74% in the United States and Canada who
found hybrid fuel economy good but the other criteria in hybrids ranging from
poor to average. Accenture determined that only 42% of respondents were
interested in buying a green vehicle within two years. Within this group of
hybrid buyers, 80% would choose hybrid models over all-electric models.
Accenture seems to have found greater selectiveness among
consumers when it comes to green technologies. The firm found that 50% of
Canadian and American respondents expected vehicle recharging to take no more
than 20 minutes. This number increases in European countries with a high point
of 73% of respondents in France expressing this expectation. 75% of all
respondents expected a payback on any price premium for green vehicles within
five years of purchase. This concern with return on investment is exacerbated
in North America with 82% of respondents expecting quick recovery of costs.
The Accenture report on its face may seem like a blow
against hybrid and electric vehicle development worldwide. The aforementioned
figure regarding fuel costs as a primary concern exists within the context of
falling fuel prices in the past three years. Automakers from Ford to Toyota are
already beginning to address concerns raised by Accenture’s survey respondents.
The concern over recharging times would be eliminated with fast-charging units
in development throughout the auto industry. The return on investment issue
would be reduced significantly when automakers achieve lower battery costs,
increased productive capacity and multiple price points for green vehicles.
These changes will lower upfront costs while ensuring vehicle quality, which
makes hybrid and electric cars long-term investments instead of short-term gambles
for skeptical consumers.
