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november, 2014
How To Get People Interested In Buying Electric Vehicles
!NEXT EXIT
november, 2014
Before we start, let’s clarify one simple ... or not a very simple detail.
!
“What is an electric vehicle?”
Electric vehicle is any vehicle that uses a power source to drive an electric motor for propulsion.
Have both a combustion engine and an electric motor.
Neither have a combustion engine, nor an electric motor. They have only a fuel cell which a device that converts chemical energy from fuel into electricity.
Plug-in Hybrids (PHEV) Battery EVs (BEV) Fuel Cell EVs (FCEV)
Battery onboard electricity stored via batteries
Hydrogen onboard electricity stored via fuel cell
Global EV Outlook, International Energy Agency, April 2013
Don’t have a combustion engine and only have an electric motor.
Source: US Department of Energy
20342014
Transportation is the second largest sector inenergy consumption in the U.S.!With oil being the #1 energy source.
92% Oil is #1 energy source for transportation
3% Natural gas
4.4% Renewable (vs. 0.1% in 1984)
4% commercial
6% residential
40% electric utility
22% industrial
28% transportation
On the bright side, the energy problem isn’t a silent problem.
The U.S. government and automakers are trying to work on solutions.
Ford:
Tesla:
2013 Best Global Green Brands:
“... bigger than simply driving efficiently. We needed to think how our electric cars could become part of a bigger solution.”
#1 Toyota, #2 Ford, #3 Honda and #34 Hyundai.
Source: Interbrand Best Global Green Brands 2013
auto manufacturer
Automakers are getting greener.
Hyundai: In 2014, launched first consumer facing fuel cell vehicle, Tucson Fuel Cell.
In 2014 opened its patent to public to accelerate the advent of sustainable future.
Source: Proprietary Survey, Green Behavior, 2010; USA Department of Energy, One Million EVs by 2015, 2011
In 2008: President Obama set a goal to put 1 million electric cars on Americans roads by 2015.
For companies: Offers up to $2 billion in grants to factories that assist an EV production.
For people: Offers tax credit up to $7,500 with the purchase of a new electric vehicle.
Government invests in the green future.
auto manufacturer government
But numbers show that Obama’s goal might not be reached by 2015.
22.5% accomplished out of the 1,000,000M planned.
Source: Electric Drive Transportation Association, 2014
Where is the disconnect? !
It starts with the people.
auto-manufacturer government
people
People know more on why they shouldn’t own an Electric Vehicle, rather than why they should.
!79% aren’t aware about the government incentives.
Most have concerns about the vehicles.
Source: Indiana University researchers, 2013
auto-manufacturer government
people
Source edmunds.com,
“I WOULD NOT BUY A HYBRID BECAUSE OF ITS ___.”
Some believe that hybrids are more expensive. !LET’S DO THE MATH: 5 year cost to own !Ford Fusion Sedan: $44,062 Ford Fusion Hybrid: $36,798 !IT’S $7,264 CHEAPER TO OWN A FORD HYBRID THAT A REGULAR SEDAN. And, this is without tax rebate ranging from $2,500 to $7,500.
high cost.
77% say that they worry about BEV’s limited range. HOWEVER 95% of people drive less than 30 miles one way.
Source: Driving patterns in the US Study, 2013 U.S Department of energy
37% believe that BEV battery is dangerous. !“Gasoline vehicles have a far higher risk that lithium ion electric vehicles. Electric vehicle batteries are much safer.“ - John German, Director at the International Council on Clean Transportation
A majority is turned off by the lack of infrastructure !In 2013, we had more than 20,000 charging stations in the U.S. which is 32% from 2012.
“I WOULD NOT BUY A BATTERY EV BECAUSE OF ITS ___.”
limited range.
!unsafe.
undeveloped infrastructure.
People are skeptical of the FCEV durability. !HOWEVER FCEV GO THROUGH AN INTENSIVE TESTING BEFORE OUT ON THE MARKET. Hyundai put over 2 million total miles on its Tucson Fuel Cell since the first fuel cell vehicle into testing in 2000.
Lack of infrastructure. !California recently passed legislation that will provide $20 million per year over several years for the development of 100 hydrogen refueling stations by 2025.
“I WOULD NOT BUY A FUEL CELL BECUSE OF ITS ___.”
uncertain durability.
undeveloped infrastructure.
In other words, most people don’t know about the benefits of Electric Vehicles
(financial and environmental).
Great fuel economy Quite and smooth drive Easy maintenance Reduced carbon footprint Tax rebate Zero emission vehicles lane benefits Savings over time
vv
vv
v
vv
And, they think about Electric Vehicles only when they have too: when gas prices are high and they
want to save money.
In the first six months of 2013, the sales of electric vehicles doubled in the U.S. compared to the same time period in 2012.
There is great push behind electric vehicles from the government and automotive companies. But it’s not enough. !We need to continuously educate people about the benefits of Electric Vehicles, explain how they work and reassure their concerns. !This goes beyond offering monetary incentives and traditional advertising. !We need to create experiences, digital and physical, to let people learn, interact and feel the product.
thanks.