Consumers Predict Hybrid Engines Will Represent Almost Half of Powered Vehicles by 2010
GREENWICH, Conn.--May 5, 2004--| Research from TNS Automotive Looks at Interest, Purchase Consideration and Price Expectations for Alternate Fuel Vehicles |
Already a hit with the Hollywood in-crowd, alternative fuel cars are this year's "must have" item. But not everyone is Brad Pitt or Cameron Diaz, and a new study announced today from TNS Automotive, a division of TNS, one of the world's three largest market information companies, unveils consumers' interest in alternative fuel vehicles, as well as purchase plans and price expectations of these vehicles.
As new models of hybrid vehicles emerge, registrations increase, and acceptance from the general public rises, automotive marketers need to make sure that they understand the characteristics of prospective buyers. Interest in new engine technologies is not uniform and, as with any new technology, there will be early adopters and early followers into the market. The early adopters of alternate fuel vehicles are already out there but it is important to identify the next wave of followers - likely to be young, male, without families, and interested in buying into the sports and mid-range segments of the market.
Key findings from this study include:
-- Thirty-nine percent of consumers are interested in alternate fuel vehicles, with 26 percent considering purchasing one.
-- Men (41 percent) are more interested in alternative fuel sources than women (37 percent), and 42 percent of consumers without kids are interested in doing so.
-- Forty-six percent of consumers age 25-34 are interested in alternative fuel vehicles, yet only 29 percent of them are considering purchasing one.
-- Although only 28 percent of consumers age 60-65 are interested in alternate fuel vehicles, those who are interested are willing to pay a higher cost for them.
-- Those consumers who are considering purchasing a truck for their next vehicle show the least interest in alternate fuel vehicles (34 percent), while those looking to purchase mid-range or sporty vehicles are most interested (45 percent and 44 percent, respectively).
-- Mid-range and sporty vehicle buyers are also significantly more likely to consider purchasing one with an alternative fuel source when compared to luxury vehicle or truck buyers.
-- The average expected price for an alternate fuel engine falls between $1000 and $2000. Those looking to purchase a sporty or luxury vehicle are the most willing to pay over $3000 for this feature.
"The U.S. car buying public knows that change is coming, and while this revolution may be expected, it isn't just anyone who wants to pay for it," said Andy Turton, president of TNS Automotive. "The consumer most likely to drive this trend is young, male and someone to whom style is an important attribute in a mid-sized or sporty vehicle. The auto manufacturer who first creates a hybrid engine that also delivers sporty performance will be in a very good position."
Also according to this study, over half of the respondents answered that they think hybrid engines will most likely power vehicles in 2010.
What will most likely power vehicles in 2010?
FUEL PERCENT OF RESPONDENTS
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GASOLINE 53%
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HYBRID 51%
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ELECTRIC 26%
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FUEL CELLS 24%
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HYDROGEN 21%
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DIESEL 16%
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SOLAR 14%
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NUCLEAR 2%
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OTHER 2%
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About the Study
The nationwide study was conducted at the end of January 2004 and is based on a representative sample of 1,000 consumers between the ages of 22 and 65, who have intentions of buying a new car in the next three to four years. In addition to attitudes towards alternate fuel source vehicles, respondents were asked to rate the overall appeal of the vehicles that were showcased at the 2004 Detroit Auto Show, and answer questions regarding purchase consideration, vehicle characteristics, and price consideration.
About TNS Automotive
TNS Automotive is a global leader in providing marketing research and strategic counsel services to automotive manufacturers. TNS Automotive offers deep marketing science expertise through its exclusive interactive panel of more than one million U.S. households and automotive-specific research methodologies, including cutting edge qualitative techniques and rigorous quantitative applications, that track individuals' attitudes, beliefs and behavior toward the automotive industry. Utilizing its integrated and harmonized global knowledge sharing network and common methods, tools and standards, TNS Automotive replicates and transfers learning and knowledge anywhere in the world.
About TNS
TNS is a leading global provider of market information. The company collects, analyzes and interprets information to help its clients better understand the needs and wants of their customers. TNS provides research, advice and insight on market segmentation, advertising and communications, new product development, brand performance and stakeholder management. The company is also one of the leading providers of social and political polling.
From its global network, which spans 70 countries, TNS provides local expertise and knowledge, together with internationally consistent information and analysis to multi-national organizations.
TNS is listed on the London Stock Exchange (TNN). Further information can be found on http://www.tns-global.com.
