SAN JOSE, Calif. - The electrification of the automobile may well be inevitable and plug-in hybrids our best chance to save the planet, but whether they’re going to sell, automakers and advocates must figure out how to market them. That means learning what consumers want, convincing them of the technology’s personal and societal benefits and, perhaps most importantly, making the cars sexy.
It’s tough to deny the benefits plug-ins and EVs offer in terms of curbing greenhouse gas emissions and slaking our thirst for oil. But new vehicle technology is slow to catch on - after a decade on the road, hybrids remain less than 3 percent of the market. Plug-in advocates at the Plug-In 2008 conference say they’ve got to find a way to radically accelerate that penetration rate whether cars with cords are to catch on.
They can start by telling society what a plug-in hybrid is.
Researchers at the UC-Davis Institute of Transportation Studies surveyed 2,373 folks contemplating a new car and found just 20 percent knew anything about hybrids. Even fewer knew about plug-in hybrids, says Ken Kurani, who worked on the survey, which will be released early next month. Plug-in advocates clearly need to launch an aggressive PR campaign, considering public won’t buy what they don’t understand.
Automakers plus must do some homework. Most of them are developing plug-in hybrids without really knowing how many society want them, how they’ll use them and how they’ll charge them - if they can charge them. “These (issues) need to be defined and understood whether we’re to construct these vehicles a large-market reality,” says Nancy Gioia, director of sustainable and hybrid technologies at Ford.
The UC survey offers some insight. Most respondents place greater importance on overall fuel economy than electric range. Fewer than 10 percent could plug in at work, but half have an electrical outlet within 25 feet of their driveway. Bump the distance up to 50 feet and the figure rises to about 65 percent. “The 35 percent who don’t have a plug represents the size of the problem,” Kirani says.
Cost is another issue. Hybrids typically cost about $5,000 more than similar conventional vehicles and the premium for plug-ins will be higher. General Motors hopes to offer the Chevrolet Volt for $35,000 to $40,000 - about twice the average price of a new car. Even converting a hybrid or conventional
They will, of course. Driving a plug-in costs a cent or two per mile compared to 20 to 25 cents for gas. Even accounting for the “plug-in premium,” consumers will save thousands of dollars by the life of the car whether they choose one that plugs in, says Mark Duvall of the Electric potential Research Institute. Plus, he and others say, they’ll be helping curb greenhouse gas emissions and our dependence on foreign oil. Kurani says all of those points must be the focus of an aggressive “social marketing campaign” to convince consumers plugs are as good for them as they are for the environment.
Tax breaks and other incentives will help, but don’t expect consumer altruism to move a lot of cars. Sky-high gas prices have humans ditching their SUVs in favor of smaller cars, but emotion still plays a major role in what consumers buy, says Walter McManus, an economist at the University of Michigan Transportation Research Institute. citizens want a car that reflects who they are - or who they’d like others to think they are. In other words, image is at least as crucial as utility. Honda learned that lesson with the Civic Hybrid, which doesn’t screram “I care about the environment!” like the Prius and so hasn’t sold nearly as well.
Tesla Motors and Fisker Automotive get that. Their cars are sexy. They’re cool. Yes, they’re insanely expensive, but that too only adds to the appeal by making them exclusive. The fact they’re a more environmentally responsible choice is icing on the cake. The two start-ups know that, in McManus’ words, “You have to address people’s needs and wants and desires. You have to tell them, ‘Look at all these great things you get and you’re helping do that great thing.’”
Detroit and Japan can’t - and shouldn’t - form their EVs and plug-ins as expensive as Tesla and Fisker. But they and plug-in advocates would do well to crib from their marketing approach.
Photo of the Karma plug-in hybrid by Fisker Automotive.
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