The inexpensive 40 mpg Chevrolet Cruze, when it appears in a year, will make more sense to buyers, we think, than the $$$Volt$$$.
The latest study about customer expectations for alternative vehicles shows that while increasing numbers of people would consider them, they are actually budgeting less for their next car purchase than the much larger group of traditionally oriented buyers.
“We have witnessed that hybrid consideration increased with fuel prices, until people became used to higher fuel prices,” says Jim Hossack, Vice President of the research firm AutoPacific. “Fuel prices have settled down in 2009 and so has demand for hybrid vehicles”
Hybrid “considerers” are ten percentage points more likely than gasoline considerers to agree with this statement posed in the study: “I am prepared to pay a higher price for an environmentally friendly vehicle.”
This alleged desire is also higher for plug-in hybrid considerers (+17%s) and pure electric considerers (+ 19%)).
However, green car considers plan to pay between $2,000 and $5,000 less on their next vehicle than gasoline considerers.
“Clearly, there is a disconnect here,” says Hossack. “While green car considerers indicate that are willing to pay more, they are actually budgeting less for their next car. This needs to be reconciled, or alternative fueled vehicles may stall in the marketplace.”
Finding buyers for these vehicles will not be like the early demand that appeared with the Toyota Prius. AutoPacifc says that marketers will need to know where their best prospects are. For instance, pure electric considerers are much more likely to be in administrative/clerical work (+13%) and much more likely to shop at IKEA (+11%) than gasoline considerers. They are much more likely (+13%) to choose a trip around the world instead of buying a new luxury vehicle.
And the emerging generation of small, hyper-efficient economy cars in the B and C classes will make more more sense and save tens of thousands cents for buyers than hybrids or electric vehicles. Take a look at the Chevrolet Cruze due in a year and compare it to the Volt, as just one example.
Auto companies are aware of the problem. As a result they have proposed a variety subsidies for expensive hybrid and electric vehicles. A giant raid on the treasuries of various governments is planned. Outright grants of $7,500 or more per vehicles are being proposed, along with a variety of tax credits and special privileges for green car buyers. Expensive infrastructure changes are also said to be needed.
All this financed by taxpayers if makers have their way with politicians.