Are Consumers Ready to Plug into the Future of Hybrid Vehicles?

This Energy Insights report discusses the potential market for plug-in hybrid electric vehicles (PHEVs). A PHEV is similar to current hybrid vehicles available, but with the capability to recharge its larger battery using a standard 120-volt outlet. The vehicle can then operate in electric-only mode for up to 60 miles (though power from the gas engine may be needed to achieve highway speeds).

Results from our 2006 Customer Insights Market Survey show that an estimated 19% of consumers surveyed are likely buyers of PHEVs, but many consumers will be put off by the higher initial cost. The report provides insights into factors that will motivate consumers to consider these vehicles, as well as the activities of auto manufacturers, policy makers, and grassroots advocacy groups.

According to Barb Ryan, senior analyst for Energy Insights, "With companies like Toyota announcing their intent to pursue this technology, we feel plug-in electric hybrid vehicles will be available on the mass market in the next five years. Our data shows that consumers are receptive to this technology and will be attracted to the fact that PHEVs do not rely solely on gasoline, can reduce U.S. dependence on foreign oil and cut greenhouse gas emissions, and offer lower fuel costs. But barriers to adoption remain, particularly the higher sticker price and the unknown life span of the car battery. Based on the sales rates of current hybrid vehicles, we expect PHEVs to have rapid growth in the first 10 years, but to represent a small percentage of light vehicles in use."

Companies Mentioned: Toyota