USA consumers consider Toyota and Honda as the top two manufacturers in bringing to market these alternatively-fuelled vehicles, with both rated significantly better than all other brands.
DETROIT, Michigan – According to a new survey by global market research firm Synovate, USA consumers are more familiar with advanced propulsion systems compared to a year ago, with turbo petrol direct injection, direct injection diesel, and hybrid electric vehicles the best-known systems.
VP of Synovate Motoresearch, the automotive research division of Synovate, and head of the study, Tim Englehart, said: "We are fast approaching the 'perfect storm' facing our advanced technologies. The combination of rational and emotional purchase behaviours is not as aligned as in the past."
Synovate surveyed 4,084 owners and prospective buyers in the USA for an annual tracking study of consumer attitudes toward advanced propulsion and alternative fuel technologies. Despite the fact consumers that want better fuel economy with their next vehicle purchase, they are still looking for the value proposition with any of these new technologies.
CEO of Synovate Motoresearch, Scott Miller, said: "While fuel economy is climbing in terms of purchase reasons, it still has not penetrated the top 10 reasons for purchasing a new vehicle. Consumers are not willing to sacrifice safety, reliability, and value for the money."
High fuel prices and concerns about the environment influence consumers' consideration of hybrid-electric vehicles, while these same concerns flatten direct injection diesel consideration. Consumers cite battery concerns as a leading reason for not considering battery-electric and plug-in hybrid vehicles although many look past this issue for hybrids in general, driving it to its highest consideration ever.
Interestingly, Synovate found that after respondents had an opportunity to read about the pros and cons of each of these technologies, attitudes shifted – particularly in favour of plug-in hybrids and away from the traditional petrol engine.
Mr Miller said: "This shows that consumers are still confused by the choices of alternative propulsion technologies and their relative advantages. Manufacturers need to do a better job of communicating the benefits to prospective buyers. For example, our survey shows that purchase consideration of plug-in hybrids almost doubles when respondents learn what it actually is, while consideration for flex-fuel vehicles drops significantly after respondents learn about their benefits and liabilities."
A key barrier to purchasing a vehicle that uses an alternative engine technology is the availability of fuel. Consumers remain convinced that filling stations need to carry the alternative fuel before they will consider buying a vehicle that runs on it. This perception has not changed in the past several years.
"Consumers also need to believe there is a long-term plan for sustaining these new technologies," Mr Miller added. "They don't want to invest in an alternative fuel vehicle unless they have peace of mind that the refuelling infrastructure, along with parts and service, will be available for many years to come."
Japanese in the lead
Consumers consider Toyota and Honda as the top two manufacturers in bringing to market these new technologies and alternatively-fuelled vehicles, with both rated significantly better than all other brands. Among energy companies, BP and Shell are perceived to be making the best effort at marketing alternative fuels, followed closely by ExxonMobil and Chevron.
Mr Englehart explained: "Unfortunately, there seems to be a direct link to the price of fuel and satisfaction with the efforts of manufacturers in bringing new technologies and alternatively-fuelled vehicles to market. When the price of fuel increases slightly, satisfaction continues to increase for manufacturers but, when the increase is significant, then satisfaction for manufacturers is negatively impacted."
Nearly two-thirds of American consumers will look for a vehicle that reduces their monthly fuel expense when considering their next purchase of a vehicle, according to the survey. What's more, nearly three-quarters of respondents said they would consider paying US$1,500 more for a vehicle that achieves 30% better fuel economy than a comparable model. The survey revealed that consumers are willing to pay an additional $2,000 for a vehicle that is significantly better for the environment.
Additionally, consumers feel that state and federal governments should be highly involved in the development or sponsorship of technologies that use alternative fuels, but most feel that both government levels are failing to do so.
Mr Englehart noted:"While California residents are less likely to blame their state government in comparison with other states, respondents across the USA feel the federal government's performance is sub-par when it comes to developing alternative fuels."
Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing methods. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs in excess of 5,800 staff in 121 cities across 57 countries. More at www.synovate.com
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