2012 Electric Vehicle Ownership Experience Study
SEE ALSO: Electric Vehicles - Solution or Diversion?
WESTLAKE VILLAGE, Calif.: 8 November 2012 -- Electric
vehicles (EVs) will remain a very small part of the U.S. market unless
automakers can lower prices and demonstrate the economic benefits to
consumers, according to the J.D. Power and Associates 2012 Electric Vehicle
Ownership Experience StudySM released today.
The
inaugural study explores the EV shopping and consideration experience as
well as the ownership experience, and provides an analysis of the needs and
expectations of current and future EV owners.
Current EV owners most
often cite environmental friendliness as the most important benefit of
owning an EV. Nearly one-half (44%) of these owners indicate the top
benefit of their vehicle is lower emissions, compared with emissions from
gasoline- or diesel-powered vehicles.
However, consumers
considering an EV for their next vehicle primarily want to lower their fuel
costs. While 11 percent of consumers would consider an EV for its
environmental benefits, 45 percent want to reap the economic benefits of
fuel savings. For example, current EV owners report an average monthly
increase in their utility bill of just $18 to recharge their vehicle's
battery--which is significantly less than the $147 that they would
typically pay for gasoline during the same period of time.
"Current
EV owners focus on the emotional benefits of owning an electric
vehicle--which are having a positive effect on the environment--but the way
for manufacturers to take EVs to the masses and increase sales is to
address the economic equation," said Neal Oddes, senior director of the
green practice at J.D. Power and Associates. "There still is a disconnect
between the reality of the cost of an EV and the cost savings that
consumers want to achieve."
Compared with sales prices for a
similar gasoline-powered vehicle, the study finds that owners of
all-electric vehicles (AEV) pay a premium of $10,000, on average, for their
vehicle, while plug-in hybrid electric vehicle (PHEV) owners pay a $16,000
premium, on average. Based on annual fuel savings, it would take an average
of 6.5 years for AEV owners to recoup the $10,000 premium they paid at the
point of purchase, while the payoff point for PHEV ownership is 11 years.
"The payback period is longer than most consumers keep their
vehicle," said Oddes. "The bottom line is that the price has to come down,
which requires a technological quantum leap to reduce the battery price.
There also needs to be an improvement in the infrastructure, or the number
of charging stations outside of the home. Until those two concerns are
addressed, EV sales will remain flat."
The study finds that
virtually all EV owners charge their vehicle at home. One-third of EV
owners elect to use a standard 120-volt outlet to charge their vehicle
rather than install a special home-charging station, which can recharge an
electric vehicle in half the time that it takes when using a standard
120-volt household outlet, and provides greater ability to leverage lower
off-peak electricity rates.
EV owners who elect to have a 240-volt
charging station placed in their home pay an average of $1,500 for
equipment, installation and inspection, plus a monthly amount for the
electricity used. However, the study finds that 43 percent of owners
received their charging station for free. Among those who do pay, the cost
of the charging station, installation and inspection are recouped through
fuel savings in the first year of ownership.
"Some utility companies
offer lower rates when EV owners charge their vehicle at home overnight,"
said Oddes. "The availability of special electric rates for EVs varies by
utility company and region. For instance, most California utilities offer
EV discount plans, but few utilities in other states currently do the
same."
The study finds that 31 percent of EV owners are either on a
time-of-day plan through their utility company that offers lower-priced
charging during off-peak hours (entire household on same meter); have a
special EV plan with a separate meter; or pay a flat fee per month to
charge their EV (no separate meter required).
"Electric utility
companies have an opportunity to focus more on EVs, as the utilities are
not currently being thought of by consumers as part of the EV equation,"
said Jeff Conklin, senior director of the energy practice at J.D. Power and
Associates. "The study shows that consumers perceive their electric company
more favorably when it provides special rates for EV charging."
The
study finds that nearly one-half (43%) of EV owners indicate they also
charge their vehicle away from home. Whether at work or in public places,
such as shopping malls and airports, when they charge their vehicle away
from home, 85 percent of the time EV owners don't have to pay for the
service.
"Most utility companies' websites have a calculator that
demonstrates the potential savings on electric vehicle fuel to help
identify how much may be saved by charging an EV rather than using
gasoline," said Conklin. "More work needs to be done to let consumers know
where charging stations are located in their area to alleviate some of the
concerns they have about where an EV can be charged away from
home."
Oddes notes that as battery technology improves,
manufacturers are able to produce more affordable EVs, which should also
lower the current price premiums. Lowering the cost of ownership may help
increase market share--electric vehicles currently account for less than 1
percent of new-vehicle sales in the United States, according to LMC
Automotive--but there are also other hurdles to overcome.
"There
still is anxiety among consumers about the cost and lifespan of EV
batteries, the infrastructure needed to charge EVs and the vehicle's
driving range," said Oddes. "Automakers need to continue to address these
issues and educate consumers about the benefits of EV technologies in order
to gain momentum in the marketplace."
Driving range and the
availability of charging stations are the top concerns among consumers
considering an EV. The study finds 12 percent of EV intenders are concerned
about the driving range. However, current EV owners indicate an average
daily commute of 34 miles--which is well within the range of a fully
charged EV.
The size of the vehicle is the second-most-frequently
cited reason for rejecting an EV. Consumers considering an EV look more
frequently for a midsize sedan than any other size vehicle. Currently, most
of the EVs being produced are in the small vehicle segments, which should
change as new midsize models enter the market in 2013.
In addition to
price and vehicle size, concerns with reliability of EVs rounds out the top
three rejection reasons.
The payoff for automakers is that once they
get consumers to buy an EV, they tend to retain them as customers. Overall,
82.5percent of owners indicate they "definitely will" or "probably will"
buy another EV from the same brand. The average retention among owners of
all vehicle types is 49.8 percent.
The following tips may be
helpful to consumers when considering an electric
vehicle:
- Drivers with predictable, unwavering daily driving requirements are the best candidates for all-electric
- vehicles. If your driving requirements are variable, consider a plug-in hybrid electric vehicle that provides pure electric driving for shorter distances, but can handle a longer trip without recharging, if necessary, by utilizing the gasoline-powered back-up engine.
- Be sure to investigate potential federal or state tax incentives associated with an electric vehicle purchase. These incentives may vary, depending on the make and model selected. Also, ask your local utility company about special EV battery-charging programs and special rate programs that may be available.
- Topography affects electric vehicle range. If you live in a mountainous region, your driving range will be somewhat variable, as the vehicle consumes charge going uphill and then captures energy while coasting downhill.
- The U.S. Department of Energy offers maps that show the locations of charging stations through the country at http://www.afdc.energy.gov/locator/stations/
The 2012 Electric Vehicle Ownership Experience Study is based on online responses from more than 7,600 vehicle owners and panelists who either currently own an EV, are considering an EV for their next vehicle purchase, or shopped for an EV but ultimately decided not to purchase one. The study was fielded in October 2012.