Fuel-Efficiency Realism Dampens Hybrid Aspirations
July 16, 2007

As consumers become more realistic about the fuel-efficiency capabilities of hybrids, the percentage of new-vehicle shoppers considering a hybrid has declined, according to the J.D. Power and Associates 2007 Alternative Powertrain Study released today.

The study finds that 50 percent of new-vehicle shoppers are considering a hybrid -- down from 57 percent in 2006, the first year of the study.

“In the 2006 study, we found consumers often overestimated the fuel-efficiency of hybrid-electric vehicles, and the decrease in consideration of hybrids in 2007 may be a result of their more realistic understanding of the actual fuel economy capabilities,” said Mike Marshall, director of automotive emerging technologies at J.D. Power and Associates.

The average additional price hybrid considerers are willing to pay for this powertrain is $2,396, with the expectation of receiving an improvement of 18.5 miles per gallon over a traditional vehicle of similar size.

The study further shows a general decline in interest in hybrids across all age groups, but, in particular, younger shoppers, those 16 to 25 years old, appear less interested in hybrids, with 60 percent considering a hybrid in 2007, down from 73 percent in 2006.

The study finds that consumer consideration for purchasing clean diesel vehicles, which were newly introduced to the market in 2007, is at 23 percent. In 2006, only 12 percent of shoppers considered purchasing diesel vehicles. On average, considerers of this powertrain are willing to pay an additional $1,491 for the clean diesel option and expect an average additional fuel economy of 15 mpg.

“While hybrid sales are steadily increasing, they continue to face competition for market share against an increasing offering of other alternative powertrains and fuel options,” said Marshall.

“As the automotive industry steadily offers more alternative powertrain/fuel options to consumers, buyer preferences will continue to shift the market in the coming years,” he said. “With high fuel prices, perceived dependency on foreign oil and an increased focus on environmental issues all being top of the minds among consumers, manufacturers will not only have to continuously make efforts to produce more fuel-efficient vehicles, but also to diversify the range of options.”

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