alternative fuel vehicles - autotrader b2b...hybrid = 36% electric = 30% plug-in hybrid = 29%...

ALTERNATIVE FUEL VEHICLES November 2013

Survey interviews conducted among AutoTrader.com visitors July 10 – August 27, 2013. Participants were recruited via an invitation.

Visitors must have been aware of alternative fuel vehicles to qualify for the study. A total of 316 completed surveys were collected.

2

Methodology

#1 Motivation For Considering

is Less Emotional

4

Reasons for purchasing an alternative fuel vehicle are less emotional and more practical.

Better Fuel Economy Cost of Savings on Gas Cleaner Emissions Better for the Environment Federal Tax Credit

Base: Aware of Alternative Fuel Vehicles (n=316)

70% 56% 37% 28% 24%

#2 Diesels

are Gaining Momentum

6

Consumers more familiar with Diesel due to increased presence in the marketplace.

Base: AutoTrader.com Users (n=586)

50%

Awareness

Hybrid = 36%

Electric = 30%

Plug-in Hybrid = 29%

Awareness is much higher for diesels than any other type of alternative fuel vehicle.

7

Consumers more familiar with Diesel due to increased presence in the marketplace. 1-in-3 have driven a diesel before (more than twice the number of people who have driven a hybrid)

Base: AutoTrader.com Users (n=586)

32%

Driven Before

Hybrid = 13%

Electric = 4%

Plug-in Hybrid = 4%

8

Consumers more open to considering Diesel due to increased presence in the marketplace. Consideration of diesels is also more than twice that of other alternative fuel vehicles.

Base: AutoTrader.com Users (n=586)

18%

Consideration

Hybrid = 6%

Electric = 2%

Plug-in Hybrid = 2%

9

Base: Aware of Diesel (n=290)

believe diesels are

more fuel efficient

than Gasoline.

72%

10

Top reasons to decide against a diesel.

Fuel Expense Too Expensive to Purchase Potentially High Cost of

Maintenance Noise

Not Really Better for

the Environment

Base: Aware of Diesel (n=290)

55% 46% 45% 32% 29%

The top three reasons are related to cost, but diesels may also have a perception problem.

#3 The Cost of Hybrids

Remains the Largest Obstacle

12

Top reasons to decide against a hybrid.

Too Expensive

to Purchase

Potentially High Cost

of Maintenance Battery Life/Range Driving Performance

Many of those aware of hybrids may not even consider test driving one because of the cost.

Base: Aware of Hybrid (n=206)

66% 55% 52% 32%

Longevity/Durability

30%

Don’t Like Available Designs/Styles

27%

Low Value For The Money

24%

13

Top reasons to select one hybrid over another. Once a shopper has decided on a hybrid, cost and maintenance is still the top concern. However, other differentiators also come

into play (brand, technology/features, and exterior/styling).

Base: Aware of Hybrid (n=206)

Purchase Price

57%

Cost of Ownership

42%

Brand Reputation

35%

Ease of Maintenance

28%

Technology/Features

26%

Exterior/Styling

25%

#4 Consumers are Hesitant

to Rely Solely on Electric

15

Top reasons to decide against electric.

Battery Life/Range Concerned About

Charging Stations

Too Expensive

to Purchase

Potentially High Cost

of Maintenance Don’t Want to Plug-in

Base: Aware of Electric (n=174)

67% 66% 60% 58% 31%

16

Base: Aware of Electric (n=174)

say an electric vehicle

should travel 150 miles

per charge.

59%

#5 Cost and Battery

are the Largest Obstacles for Plug-ins

Battery Life/Range Unknown Resale Value

18

Top reasons to decide against plug-ins.

Too Expensive

to Purchase

Potentially High Cost

of Maintenance Don’t Want to Plug-in

Base: Aware of Plug-in hybrids (n=166)

71% 64% 58% 40% 34%

19

Base: Aware of Plug-in hybrids (n=166)

say a plug-in vehicle

should travel 80+ miles

solely on electricity.

56%

#6 Willing to Pay a Premium

Willing to pay a premium over gasoline.

Hybrid Electric Plug-in Hybrid Diesel

53% 51% 41% 39%

Base: Aware of each vehicle type

21

Consumers are significantly less willing to pay a premium for electric or plug-ins.

22

Willing to pay a premium over gasoline.

Hybrid (A) Diesel (B) Electric (C) Plug-in (D)

< $1K 22% 18% 20% 21%

$1 – 1.9K 14% 13% 8% 8%

$2 – 3.9K 9% 12% D 8% 5%

$4K + 6% 10% 6% 5%

Not willing 33% 28% 45% AB 44% AB

Don’t know 16% 19% 14% 16%

Consumers are significantly less willing to pay a premium for electric or plug-ins.

Base: Aware of Alternative Fuel Vehicle

Letter = significantly higher than indicated column

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Image Attributes

Hybrid Diesel Electric Plug-in

Good fuel economy 52% 50% 40% 36%

Good for environment 46% 23% 56% 34%

Cleaner emissions 44% 22% 61% 34%

Good reputation 44% 61% 13% 13%

Innovative technology 50% 28% 50% 41%

Highly practical 48% 56% 13% 17%

Good value for the money 40% 63% 13% 12%

Hybrids may be on par with diesel for “good fuel economy” and rate higher for “innovative technology”, but diesels are viewed as

the most practical alternative fuel option that provides the best value.

Base: Aware of Alternative Fuel Vehicles (n=316)

#7 Toyota is a Leader

of Alternative Fuel Vehicles

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Top Brands Top Leader

Other Leaders

High Awareness

Base: Aware of Alternative Fuel Vehicles (n=316)

Brands that offer alternative fuel vehicles.

Base: Aware of Alternative Fuel Vehicles (n=316)

15% 17% 18% 21% 23% 23%

27% 29%

37%

52% 54% 59%

63%

Shoppers are most aware of Toyota’s alternative fuel vehicles versus competitors, but the margin is slim.

26

Leaders in alternative fuel vehicles.

Base: Aware of Alternative Fuel Vehicles (n=316)

3% 3% 4% 4% 4% 6% 7% 8% 10%

18%

25% 28%

48%

The gap begins to widen when shoppers are asked to identify leaders in this category. Toyota is by far seen as the leader in

alternative fuel vehicles – Honda and Ford are distant competitors.

27

28

Volkswagen excels in diesel vehicle awareness.

Base: Aware of Diesel (n=290)

17% 17% 17% 22% 23% 25% 25%

29% 29% 30% 33%

42%

50%

Volkswagen has four of the top five diesel vehicles.

Jetta Passat E350 Toureg Beetle ML350 Cruze 335D GLK Grand

Cherokee Cayenn

e

R350 A3

29

Nissan Leaf has the highest electric vehicle awareness.

Base: Aware of Electric (n=174)

5% 7%

17%

20%

25% 26% 28%

32%

35%

Leaf Focus EV Model

S

Spark EV Fit EV RAV4 EV Smart For Two

EV 500e i

30

Chevrolet Volt leads the way for Plug-in Hybrid awareness.

Base: Aware of Plug-in hybrids (n=166)

4%

14% 17%

20% 22%

35%

40%

Volt Prius Plug-in Hybrid Fusion Energi C-Max Energi Karma Converj Accord Plug-in

Hybrid

ALTERNATIVE FUEL VEHICLES August 28, 2013

Presenter Name

Presenter Title presenter.name@autotrader.com 123-456-7890