There was an interesting study from JD Power last week that examined consumer attitudes to hybrids and electric vehicles. It pretty much confirmed what a lot of people in the industry have long known: that these vehicles will not make it to mainstream car buyers in the foreseeable future.
Reports of the pending demise of the internal combustion engine are way off the mark. Lowering carbon emissions on the average ICE vehicle in use remains the major challenge for powertrain engineers, transport planners and government regulators.
Go deeper with GlobalData
That task is especially important in the high growth emerging markets where consumers will be even less willing to pay a premium for a hybrid or EV as they get on the motorisation ladder.
That said, electric drive vehicles will of course be playing a bigger role and we can debate what we mean by ‘niche’ as opposed to mainstream. The market ‘niche’ will be getting bigger. And don’t rule out a major spike to oil prices that would inevitably make them much more attractive.
However, the JD Power analysis confirms that uncertainties over the size of the electric drive market and the timescale for its evolution are considerable. They add to the risks attached to the huge investments in electric drive technologies being made by some vehicle manufacturers and suppliers.
But thank goodness the investments are being made and that a credible working alternative to burning fossil fuels is being developed. We’ll be seeing many more of these vehicles on the roads in the coming years, the products constantly improving and gradually gaining greater acceptance.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataYes, there are big uncertainties associated with electric drive vehicles, the pace of consumer acceptance to them, and the timescale on which they can become cheaper to buy. There are also, obviously, major issues with electric power generation and the concern that the CO2 emissions are simply being transferred from the tailpipe to the power station.
But one thing we can be certain of is that the fossil fuels we are burning are a finite resource and that there is a risk (even if scientists disagree on its magnitude) that burning them is harming the environment in ways that could be disastrous for future generations. A turbocharger on an ICE that enhances efficiency is also a key part of the greener car strategy, but it clearly makes sense for the auto industry to be investing in alternative powertrain technologies for the long-term.
For the companies brave enough to do that, there is the potential reward of leading what will be a growing niche. And we should all applaud them for trying and for the wider message conveyed that the automotive industry takes environmental concerns seriously and is capable of massive innovation.
US: Switching consumers to hybrids/EVs will be difficult – JD Power
Related Company Profiles
J.D. Power