Tuesday, May 21, 2019

Will UK consumers consider owning a full BEV in next five years?

[Excerpt]

A major study into consumer attitudes around electric vehicles
(EVs) in the UK has shown that only around one in four consumers
would consider buying an EV as their main vehicle in the next five
years. The study which was conducted by the Transport Research
Laboratory (TRL), which is owned by a not-for-profit foundation
overseen by transport industry companies, is one of the most
comprehensive and detailed yet undertaken of consumer attitudes to
EVs. Other key findings were that around 50% of participants
indicated they were fairly or very likely to choose a PHEV as a
main or second household car, or a BEV as a second car, in the next
five years. In terms of range capability influencing the potential
buying choice, it was also found that an all-electric range (AER)
of at least 200 miles was needed for 50% of participants to
consider owning a BEV as a main car, while an AER of 300 miles
increased that percentage to over 90%.

One of the interesting elements of this survey was the
methodology. It actually involved 200 mainstream consumers being
given access to a conventional ICE (VW Golf hatchback GT Edition),
a pure EV (VW e-Golf hatchback) and a PHEV (VW Golf GTE hatchback)
version of the current Volkswagen (VW) Golf for three or four days.
They were then surveyed on their responses to using the various
fuel types.

Outlook and implications

The study is likely to make for sobering reading for the OEMs
that are currently committing billions to electrifying their model
offerings, of which VW is obviously just one. It is going to take a
big commitment to selling and marketing the benefits of EVs to
consumers, if take-up is going to accelerate. And while this is one
survey in just one market, it is probable that similar results will
be replicated across the other major Western European passenger car
markets. Many Western European governments such as France and the
UK are already talking about banning ICE vehicles wholesale from
2040. However, it should also be noted that any administration that
bans ICE cars and forces consumers to make an expensive new BEV
vehicle purchase without significant subsidies will face a
considerable political backlash.