GT Resources Inc V.GT

Hybrids dominant over EVs

[Mookster3]

Key takeaways

 

 

• As global auto manufacturers continue to invest in electrified vehicle (EV) production, internal combustion engine (ICE) powertrains dominate future U.S. intentions, with 69% of U.S. consumers looking to retain the technology for their next vehicle.
• Despite a growing interest in sustainability globally, more than half (53%) of U.S. consumers are unwilling to pay more than US$500 for alternative engine solutions.
• Virtual sales continue to show promise for their convenience and ease of use; however, 75% of U.S. consumers would prefer an in-person experience for their next vehicle purchase.
• Shared mobility services like ride-hailing and car sharing have been slow to return to pre-pandemic levels; 76% of Americans prefer their personal vehicles to other modes of transportation.

Why this matters
While the automotive sector focuses on the road ahead and a return to its pre-pandemic pace of growth, consumer values remain aligned with familiarity and affordability. For 12 years, Deloitte has been exploring automotive consumer trends impacting the rapidly evolving global mobility ecosystem. This year's report, "2022 Global Automotive Consumer Study," explores a variety of issues impacting the global automotive sector, including the development of advanced technologies, sustainability, cost expectations on new vehicles, virtual purchasing experiences and mobility services. The report is based on a survey of more than 26,000 consumers from 25 countries conducted between September and October 2021.

Mapping the future of EVs
As global automakers look to make good on their promises of an electrified future, consumer interest in adopting more sustainable powertrains is driven by reduced fuel costs, climate concerns and better driving experiences. However, EV limitations continue to draw many drivers to familiar internal combustion engine (ICE) vehicles. At the same time, consumer willingness to pay for advanced technologies remains limited.  

• Despite a growing interest in sustainability, a majority of consumers are still unwilling to pay more than US$500 for advanced technologies including alternative powertrains, including in the U.S. at 53%. Further, consumers are unwilling to pay for other advanced features including autonomous driving, enhanced safety and connectivity.
• As a result, ICE vehicles continue to dominate future U.S. vehicle purchase intentions (69%). Among alternative powertrains, consumer interest in battery electric vehicles (BEVs) is highest in the Republic of Korea (23%), China (17%) and Germany (15%), while Japanese consumers showed the highest preference towards hybrid electric vehicles (HEV/PHEV) (48%) followed by the Republic of Korea (35%).
• However, mounting concerns about climate change and reducing emissions are consistently among the top two motivators for electric vehicle adoption among global consumers in the U.S., Germany, Japan, the Republic of Korea, India and Southeast Asia.
• The majority of EV intenders expect to charge their vehicles at home, particularly in Japan (76%), India (76%), the U.S. (75%) and Germany (70%). Demand for public charging is highest in the Republic of Korea (38%) and Southeast Asia (29%).
• Among those planning to charge their vehicles at home, two-thirds (66%) of Americans will leverage traditional power grids. Meanwhile, consumers in India, China and Southeast Asia plan to use both the regular grid and renewable power.
• Driving range is the top concern about EVs across consumers in Germany (24%), China (22%) and the U.S. (20%), whereas the lack of public charging infrastructure is top of mind in Asia (Southeast Asia at 28%, the Republic of Korea at 26%, India at 23% and Japan at 19%).
• U.S. consumers expect fully charged EVs to travel upwards of 500 miles, while those in China, Japan and India are content with a range of around 250 miles.

Key Quote