Electric Cars - US - September 2009

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Consumer survey data
• Advertising creative
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• The electric car market has arrived; automakers committing to production
• High battery costs prevent automakers from offering an affordable electric
• China poses a threat to U.S. electric car and battery manufacturers
• Government investment helping drive electric car technology
• High gas prices, overall "greening" of consumers are major market drivers
• Toyota hopes to build Prius brand in the new market for electric vehicles
• Automakers forming key partnerships to stay competitive
• Automakers setting immediate goals to get EVs on the road
• Consumer survey results
• Market Size and Forecast
• Key points
• Hybrid market predicted to grow to 11.28 million vehicles by 2020
• Competitive Context
• Overview
• Lithium-ion battery cost threatens electric car' s power, affordability
• Nation' s electrical grid currently insufficient to support expected EV boom
• Chinese auto industry expects to produce 500,000 electric cars by 2011
• Segment Performance
• Key points
• Extended range plug-ins and pure EVs are the next wave of green cars
• Segment Performance--Series Hybrids
• Key points
• Series hybrids represent the simplest electric, but also more expensive
• Segment Performance--Parallel Hybrids
• Key points
• Parallel hybrid segment best represented by Honda Insight
• Segment Performance--Power-split Hybrid
• Key points
• Toyota' s novel design with Prius produces world' s bestselling hybrid
• Segment Performance--Extended Range Plug-Ins
• Key points
• Plug-in hybrid electric launches expected for 2011, threatened by cost
• Hybrid kits available to transform ordinary hybrids into full EVs
• Segment Performance--Pure Electrics
• Key points
• Pure electric prototypes could represent the electric market of the future
• Hydrogen-driven cars remain in infancy due to cost, technology difficulties
• Despite challenges, Honda is at the forefront of fuel cell technology
• Market Drivers
• $2.4 billion in stimulus funds awarded to accelerate battery development
• Unstable gas price fluctuation may affect EV sales over long term
  • Figure 1: U.S. gasoline prices, 2003-09
• Leading Companies
• Key points
• Overview
• Toyota Motor Co.
• General Motors
• Ford Motor Company
• Chrysler LLC
• Honda Motor Co.
• Nissan Motor Co.
• Hyundai Motor Co.
• Brand Qualities
• Prius builds upon its brand as the original hybrid
• Tesla Motors seizes on first-mover advantage
• Innovation and Innovators
• Ford' s Sync develops communication system to help drivers recharge
• Automakers form key partnerships to stay competitive in EV production
• General Motors and LG Chem
• Nissan working with state power provider, city of Seattle
• Ford saved money by partnering with supplier to develop plug-in Focus
• Advertising and Promotion
• Getting EVs on the road and in the consumer' s mind
• It' s not easy being green: blue replaces green to emphasize clean driving
• Toyota positions the Prius as a launch pad for future EV technologies
  • Figure 2: Toyota television ad, 2009
• Honda forgoes environmental image in favor of one that emphasizes fun
  • Figure 3: Honda television ad, 2009
• Prius Ad stresses harmony between man, nature, and machine
  • Figure 4: Toyota television ad, 2009
• Chevy takes the Malibu from assembly line to forest
  • Figure 5: Chevrolet Malibu television ad, 2009
• Vehicle Ownership
• Key points
• Compact, smaller cars are among the most commonly purchased vehicles
  • Figure 6: Vehicle ownership, by gender, July 2009
• SUVs remain the vehicle of choice for young drivers
  • Figure 7: Vehicle ownership, by age, July 2009
• Consumer taste for small vehicles spans across all household incomes
  • Figure 8: Vehicle ownership, by household income, July 2009
• Vehicle Purchasing Factors
• Key points
• Electric car purchasing threatened by devalue of environmentalism
  • Figure 9: Vehicle purchasing factors, July 2009
• Impact on the environment: Gender
  • Figure 10: Impact on the environment as a purchase factor, by gender, July 2009
• Impact on the environment: Age
  • Figure 11: Impact on the environment as a purchase factor, by age, July 2009
• Good gas mileage: Gender
  • Figure 12: Good gas mileage as a purchase factor, by gender, July 2009
• Good gas mileage: Age
  • Figure 13: Good gas mileage as a purchase factor, by age, July 2009
• Hybrid Satisfaction
• Key points
• For many consumers, gas mileage still not as good as expected
  • Figure 14: Consumer attitudes towards gas mileage, by gender, July 2009
• Hybrid owners small in numbers, many still need gas-mileage solutions
  • Figure 15: Hybrid vehicle ownership, by gender, July 2009
• Driving Participation
• Key points
• Most driving is done over short distances
• Females spend more time than men driving locally
  • Figure 16: Driving habits, by gender, July 2009
• Higher household income corresponds to greater city/local driving
  • Figure 17: Driving habits, by household income, July 2009
• Willingness to Purchase an Electric
• Key points
  • Figure 18: Likelihood of electric car purchase, by gender, July 2009
• Young consumers are prospective EV buyers
  • Figure 19: Likelihood of electric car purchase, by age, July 2009
• Higher-income households more likely to purchase plug-in electrics
  • Figure 20: Likelihood of electric car purchase, by household income, July 2009
• Consumer Knowledge of Electric Cars
• Key points
• Halfway there: But consumer EV awareness has room to grow
  • Figure 21: Consumer knowledge of electric cars, by gender, July 2009
• Young consumers lag in EV intelligence
  • Figure 22: Consumer knowledge of electric cars, by age, July 2009
• Consumer Concerns About Electric Cars
• Key points
• Battery issues top list of consumer concerns
  • Figure 23: Consumer concerns about electric cars, by gender, July 2009
• More affluent consumers respond, show us performance
  • Figure 24: Consumer concerns about electric cars, by household income, July 2009
• Consumer Opinion on Electric Car Mandates, Funding
• Key points
• Consumers not likely to push back against government incentives for EVs
  • Figure 25: Consumer opinions on electric car mandates, by gender, July 2009
• As household income rises, respondents more likely to support incentives
  • Figure 26: Consumer concerns about electric cars, by household income, July 2009
• Race and Hispanic Origin
• Key points
• SUVs and small vehicles drive Hispanic buying
  • Figure 27: Vehicle ownership, by race or Hispanic origin, July 2009
• Impact on the environment: Race
  • Figure 28: Impact on the environment as a purchase factor, by race or Hispanic origin, July 2009
• Good gas mileage: Race
  • Figure 29: Good gas mileage as a purchase factor, by race or Hispanic origin, July 2009
• A third of Hispanics open to purchasing an electric car
  • Figure 30: Likelihood of electric car purchase, by race or Hispanic origin, July 2009
• Black and Hispanic consumers less concerned about battery issues
  • Figure 31: Consumer concerns about electric cars, by race or Hispanic origin, July 2009
• Appendix: Other Useful Consumer Tables
• Consumer attitudes towards gas mileage by household income
  • Figure 46: Consumer attitudes towards gas mileage, by household income, July 2009
• Consumer attitudes towards gas mileage by gender
  • Figure 47: Gas mileage vehicle satisfaction, by gender, July 2009
• Impact on the environment: Household income
  • Figure 48: Impact on the environment as a purchase factor, by household income, July 2009
• Good gas mileage: household income
  • Figure 49: Good gas mileage as a purchase factor, by household income, July 2009
• Driving habits by age
  • Figure 50: Driving habits, by age, July 2009
• Consumer knowledge of electric cars by household income
  • Figure 51: Consumer knowledge of electric cars, by household income, July 2009
• Consumer opinions of government mandates by age
  • Figure 52: Consumer opinions of government mandates, by age, July 2009
• Consumer attitudes towards gas mileage by race or Hispanic origin
  • Figure 53: Consumer attitudes towards gas mileage, by race or Hispanic origin, July 2009
• Likelihood of electric car purchase by race or Hispanic origin
  • Figure 54: Likelihood of electric car purchase, by race or Hispanic origin, July 2009
• Appendix: Trade Associations