Abstract
This Energy Insights report discusses the potential market for plug-in hybrid
electric vehicles (PHEVs). A PHEV is similar to current hybrid vehicles
available, but with the capability to recharge its larger battery using a
standard 120-volt outlet. The vehicle can then operate in electric-only mode
for up to 60 miles (though power from the gas engine may be needed to achieve
highway speeds).
Results from our 2006 Customer Insights Market Survey show that an estimated
19% of consumers surveyed are likely buyers of PHEVs, but many consumers will
be put off by the higher initial cost. The report provides insights into
factors that will motivate consumers to consider these vehicles, as well as the
activities of auto manufacturers, policy makers, and grassroots advocacy groups.
According to Barb Ryan, senior analyst for Energy Insights, "With companies
like Toyota announcing their intent to pursue this technology, we feel plug-in
electric hybrid vehicles will be available on the mass market in the next five
years. Our data shows that consumers are receptive to this technology and will
be attracted to the fact that PHEVs do not rely solely on gasoline, can reduce
U.S. dependence on foreign oil and cut greenhouse gas emissions, and offer
lower fuel costs. But barriers to adoption remain, particularly the higher
sticker price and the unknown life span of the car battery. Based on the sales
rates of current hybrid vehicles, we expect PHEVs to have rapid growth in the
first 10 years, but to represent a small percentage of light vehicles in use."
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