(Graphic: J.D. Power & Associates)The AEI combines U.S. Environmental Protection Agency (EPA) publicly available information with customer data related to fuel economy, air pollution and greenhouse gases for 2006 model-year vehicles. Customer data also is used to help determine the relative importance of these environmental factors. The fuel economy factor represents approximately 50 percent of the index, while air pollution and greenhouse gases contribute to the remainder. "High gas prices, coupled with consumers becoming more familiar with alternative powertrain technology, are definitely increasing consumer interest in hybrids and flexible fuels," says Mike Marshall, director of automotive emerging technologies at J.D. Power & Associates. "However, the additional price premiums associated with hybrid vehicles - which can run from $3,000 to $10,000 more than a comparable non-hybrid vehicle - remain the biggest concern among consumers considering a hybrid. The AEI highlights several non-hybrid models available that help consumers reduce fuel use and emissions."Interest in alternative fuel vehicles rising
The study, which examines consumer perceptions regarding hybrids, diesel and flexible fuel vehicles, finds that about 23 percent of consumers say they will only consider a gasoline-powered model for their next new vehicle. Among consumers who expect to acquire a new vehicle within the next two years, 57 percent indicate that they are considering a hybrid vehicle, while 49 percent are considering a flexible fuel (E85/ethanol-based fuel blend) vehicle and 12 percent a diesel vehicle.
Among the Top 30 AEI vehicles, eight are hybrids: ~ Ford Escape Hybrid ~ Lexus RX 400h
~ Honda Accord Hybrid ~ Mercury
~ Mariner Hybrid
~ Honda Civic Hybrid ~ Toyota
~ Highlander Hybrid
~ Honda Insight ~ Toyota Prius Traditional gasoline-powered models in the Top 30 are:
~ Acura RSX ~ Hyundai Elantra
~ Suzuki Reno ~ Toyota Camry
~ Chevrolet Aveo ~ Kia Rio
~ Chevrolet Cobalt ~ Kia Spectra
~ Toyota Corolla ~ Volkswagen Golf
~ Ford Focus ~ Mazda3
_ Ford Focus Station Wagon
~ Mazda MX-5 ~ Volkswagen Jetta
~ Honda Accord ~ Nissan Sentra
~ Volkswagen New Beetle
~ Honda Civic ~ Saturn Ion
~ Hyundai Accent ~ Scion xA Hybrid SUVs are the only truck models among the Top 30. Only two luxury models - the Lexus RX 400h and Acura RSX - are included among the top environmentally friendly vehicles.
"One of the biggest challenges for alternative powertrains is that consumers often have unrealistic expectations for the fuel-saving abilities of these vehicles," Marshall says. "And particularly with hybrids, actual fuel performance often doesn't live up to the vehicle's EPA estimate. There is a real need to educate consumers about the technology and its benefits. Managing consumer expectations and lowering the cost premium will be instrumental in accelerating acceptance."
Younger buyers are much more likely to consider an alternative powertrain with their next vehicle purchase. Nearly three-fourths of consumers ages 16 to 25 - who purchase fewer than 10 percent of all new vehicles - are interested in a hybrid vehicle; 52 percent are considering a flexible fuel vehicle and 15 percent a diesel vehicle.
In contrast, fewer than one-half of consumers over 57 years old (one-fourth of new-vehicle buyers) would consider a hybrid or flexible fuel vehicle, and only 8 percent would consider a diesel. Consumers in the West (63 percent) and Northeast (61 percent) express the most interest in hybrid vehicles, while consumers in the Midwest (59 percent) are most interested in flexible fuel vehicles. Consumer interest in diesel vehicles ranges between 11 percent and 13 percent across the country.
While actual hybrid vehicle owners tend to be older (55) and more affluent (average annual household income of $113,400) than the average new-vehicle buyer, the study finds that consumers who indicate that they are considering a hybrid tend to be younger (averaging 43 years old), with an average annual household income of $88,000.
Despite often providing lower-than-expected gas mileage performance, hybrid and diesel U.S. market shares continue to grow. J.D. Power & Associates forecasts that hybrid vehicles, which represented 1.2 percent of the U.S. new light-vehicle market in 2005, are expected to increase to 1.6 percent in 2006 and 5 percent by 2013.
Diesel vehicles, which represented 3.2 percent of the U.S. new light-vehicle market in 2005, are expected to increase to 3.6 percent in 2006 and 9 percent by 2013.
(Source: J.D. Power &
Associates)
