Hybrid and Electric Cars - US - November 2012

Report Length: 158 pages

1. Scope and Themes

   • What you need to know
   • Definition
   • Data sources
   • Sales data
   • Consumer survey data
   • Advertising creative
   • Abbreviations and terms
   • Abbreviations
   • Terms

2. Executive Summary

   • The market
   • Sales of hybrid and electric cars estimated to reach exceed 470,000 units a 64% gain in 2012
   • Mintel forecasts hybrid and electric vehicles sales of 850,000 by 2017
     • Figure 1: Sales of all hybrid and electric cars, 2007-17
   • Hybrid and electric vehicles represent 3.3% of all vehicles sold
     • Figure 2: Sales of all hybrid and electric cars, by segment, 2007-12
   • Market factors
   • New fuel efficiency standards incentivize building of hybrid and electric vehicles
   • Improved ability to make up for the hybrid/electric premium with savings at the pump bodes well for future sales
     • Figure 3: U.S. all grades retail gasoline prices (Dollars per gallon), Oct 2002-Oct 2012
   • Consumer sentiment at five-year high, providing potential catalyst to replace old cars
   • Market segmentation
   • Nine out of 10 alternative fuel vehicles sold are hybrids, yet electric cars gain share
     • Figure 4: U.S. unit sales of hybrid and electric vehicles, by segment, YTD 2011-12
   • Prius drives sales of compact hybrids to gain of 55%
   • Midsize hybrids are fastest-growing hybrid segment
   • Hybrid truck/SUV brands struggle to meet consumer taste for bulk and power
   • Luxury hybrids remain niche market due to cost
   • Electric vehicles fastest-growing segment
     • Figure 5: U.S. unit sales of hybrid and electric vehicles, by segment, YTD 2011-12
   • The consumer
   • Hybrid owners: technology, safety, and accessories provide key issues for future
     • Figure 6: Interest in driving and what’s under the hood, by gender, January 2011-March 2012
   • • Figure 7: Select attitudes to hybrid/electric cars, by engine type of vehicle considering to buy next, August 2012
   • Battery issues are top concern
     • Figure 8: Battery-related concerns with hybrid/electric vehicles that may prevent purchase, by household income, August 2012
   • Toyota the brand most looked to for the ideal hybrid/electric car
     • Figure 9: Manufacturer most likely to consider for dream hybrid/electric car, by gender, August 2012
   • What we think

3. Issues in the Market

   • Where did all the young people go?
   • Does this loss really hurt sales?
   • So, how can brands attract young consumers?

4. Insights and Opportunities

   • Car sharing and rental car services let consumers see driving as fun
   • Hybrids need to promote brand loyalty should repeat sales falter
   • Marketers should keep current hybrid owners satisfied to build brand loyalty
   • Electric car racing might introduce technology to fans

5. Trend Applications

   • Trend: Prepare for the Worst
   • Trend: Patriot Games
   • 2015 Trends
   • Trend: 2015 Access Anything, Anywhere

6. Market Size and Forecast

   • Key points
   • Hybrid and electric car sales estimated to reach 500,000 units with launch of new models
   • • Figure 10: U.S. unit sales and forecast of hybrid and electric vehicles, 2007-17
   • Hybrid and electric cars account for 3.3% of vehicles sold
     • Figure 11: Share of U.S. unit sales of vehicles, by engine type, 2004-12

7. Market Drivers

   • Key points
   • Introduction of new hybrid and electric models may spur demand
   • New mass market PHEV and EV models join Volt and LEAF
   • New fuel efficiency standards incentivize building of hybrid and electric vehicles
   • • Figure 12: Preliminary fuel efficient projections for various vehicle makes and models, 2012-25
   • Rising gas prices, technology gains to improve cost-benefit trade
   • • Figure 13: U.S. all grades retail gasoline prices (dollars per gallon), Oct 2002-Oct 2012
   • Consumer confidence improving, encouraging new car buying
     • Figure 14: University of Michigan Consumer Sentiment, March 1978-2012

8. Competitive Context

   • Key points
   • Small cars represent 41% of car sales in 2012 and growing
   • • Figure 15: Small cars as a share of all cars sold and all automobiles sold, 2007-12**
   • Car sharing attracts potential audience of young, urban consumers
   • Fuel cell and diesel engine vehicles offer distinct advantages

9. Segment Performance

   • Segment performance—overview
   • Key points
   • PHEVs and EVs gain nearly 3% of hybrid and electric vehicle market share
     • Figure 16: U.S. unit sales of hybrid and electric vehicles, by segment, January-August 2011-12
   • Segment performance—compact hybrids
   • Key points
   • Compact hybrid segment sales dominated by Prius brands, increase 55%
     • Figure 17: U.S. unit sales of compact hybrids, 2007-12
   • Compact hybrid is difficult segment for new entrants
   • • Figure 18: U.S. unit sales of compact hybrids, by brand, YTD 2011-12
   • Segment performance—midsize hybrids
   • Key points
   • Midsize hybrid sales estimated to increase 142%
     • Figure 19: U.S. unit sales of midsize hybrids, 2007-12
   • Chevy Malibu enters competitive field with strong first-year sales
   • • Figure 20: U.S. unit sales of midsize hybrids, by brand, Jan-Aug 2011-12
   • Segment performance—truck/SUV hybrids
   • Key points
   • Hybrid truck/SUV segment struggles, likely due to image, not math
     • Figure 21: U.S. unit sales of truck/SUV hybrids, 2007-12
   • Sales decrease for all truck/SUV hybrids except Highlander
     • Figure 22: U.S. unit sales of truck and SUV hybrids, by brand, Jan-Aug 2011-12
   • Segment performance—luxury hybrids
   • Key points
   • At 43,000 units, luxury remains niche segment due to cost
     • Figure 23: U.S. unit sales of luxury hybrids, 2007-12
   • Three brands—Buick, Lexus, and Lincoln—account for 89% of luxury share
     • Figure 24: U.S. unit sales of luxury hybrids, by brand, Jan-Aug 2011-12
   • Segment performance—PHEV and electric vehicles
   • Key points
   • Manufacturers believe electric car technology can appeal to mainstream
     • Figure 25: U.S. unit sales of electric vehicles, 2007-12
   • Eight new entrants and counting mark evolution of electric segment
   • • Figure 26: U.S. unit sales of PHEV, electric vehicles, by brand, Jan-Aug 2011-12

10. Leading Companies

    • Toyota dominates industry with nearly 200,000 vehicles sold
      • Figure 27: U.S. unit sales of hybrid and electric vehicles, by manufacturer, Jan-Aug 2011-12
    • Wide range of new alternative fuel vehicles coming 2013-15
    • For Toyota, firmly set as hybrid industry leader, not much change in store
    • Chevrolet hopes to build on success of Volt with launch of new electric vehicles
    • Honda Accord gets hybrid/electric treatment
    • Ford launches first dedicated hybrid nameplate, C-Max
    • Second-generation Nissan LEAF battery may offer improvements
    • Other brands serve loyal audiences with new launches, Tesla looks to go mainstream

11. Social Media Analysis – Hybrid and Electric Cars

    • Key points
    • • Figure 28: Key brand metrics, October 2012
    • Market overview
    • Brand usage and awareness
      • Figure 29: Brand usage and awareness, October 2012
    • Interaction with car brands
      • Figure 30: Interaction with hybrid and electric car brands, October 2012
    • Motivations for interacting with car brands
      • Figure 31: Why people interact with hybrid and electric car brands, October 2012
    • Online conversations
      • Figure 32: Select hybrid and electric car brands’ share of online mentions, Jul. 1-Oct. 20, 2012
    • • Figure 33: Number of online mentions for selected hybrid and electric car brands, by week, Jul. 1-Oct. 20, 2012
    • Where people are talking about car brands?
      • Figure 34: Selected hybrid and electric car brands, mentions by page type, Jul. 1-Oct. 20, 2012
    • What are people talking about?
      • Figure 35: Types of mentions concerning selected hybrid and electric car brands, Jul. 1-Oct. 20, 2012
    • • Figure 36: Types of conversation regarding selected hybrid and electric vehicles, Jul. 1-Oct. 20, 2012
      • Figure 37: General Motors ecohub mobile app, 2012
    • • Figure 38: Types of conversation regarding selected hybrid and electric vehicles, by type of website, Jul. 1-Oct. 20, 2012
    • Brand analysis
    • Toyota Prius
    • Key social media indicators
      • Figure 39: Toyota Prius – key social media indicators, October 2012
    • Key online campaigns
      • Figure 40: Toyota ‘Game Of Life with prius c’ online campaign, 2012
    • What we think
    • Chevy Volt
    • Key social media indicators
      • Figure 41: Chevy Volt– key social media indicators, October 2012
    • Key online campaigns
    • What we think
    • Nissan LEAF
    • Key social media indicators
      • Figure 42: Nissan LEAF – key social media indicators, October 2012
    • Key online campaigns
    • What we think
    • BMW ActiveHybrid
    • Key social media indicators
      • Figure 43: BMW ActiveHybrid– key social media indicators, October 2012
    • Key online campaigns
    • What we think
    • Ford Escape
    • Key social media indicators
      • Figure 44: Ford Escape– key social media indicators, October 2012
    • Key online campaigns
    • What we think
    • Honda Insight
    • Key social media indicators
      • Figure 45: Honda Insight– key social media indicators, October 2012
    • Key online campaigns
    • What we think

12. Innovations and Innovators

    • Wireless electric vehicle battery charging gives consumers more freedom
    • Tesla “Supercharger” stations refill battery in one hour or less
    • Toyota Friend social media network features tweeting cars

13. Marketing Strategies

    • The role of influential bloggers in vehicle launches
    • Marketers overcome challenge of educating viewers in less than 30 seconds
    • Strategy: Hybrids are not just about the environment, they can be fun
      • Figure 46: Ford Ad, Making you feel alive, October 2012
    • Strategy: Focus on the gas savings
      • Figure 47: Chevrolet Ad, I don’t spend money on gas, October 2012
    • Strategy: HEVs grow up, full size now available
      • Figure 48: Buick Ad, I may have retired, October 2012
    • Strategy: Early adopters can “drive the future”
      • Figure 49: Nissan Ad, What if you could drive the future, October 2012

14. Attitudes and Opinions of Current Hybrid Owners

    • Key points
    • Overview
    • Male hybrid owners interested in mechanics of technology
      • Figure 50: Hybrid owners’ general attitudes/opinions about cars and driving, by gender, January 2011-March 2012
    • Current void among 25-34 year-old hybrid owners concerning safety rating
      • Figure 51: Hybrid owners’ attitudes/opinions about the car buying decision, by age, January 2011-March 2012
    • Options and accessories important to households earning $50K-74.9K
      • Figure 52: Hybrid owners’ attitudes/opinions about auto options and accessories, by household income, January 2011-March 2012

15. Attitudes of Consumers Planning to Buy Hybrid/Electric Vehicles

    • Key points
    • Overview
    • Premium of less than $3,000 would attract potential hybrid buyers
    • • Figure 53: Premium willing to spend to get hybrid/electric vehicle, by engine type of vehicle considering to buy, August 2012
    • Those considering hybrid expect to get money back on future gas savings
    • • Figure 54: Attitudes to hybrid and electric cars, by engine type of vehicle considering to buy, August 2012
    • Financial considerations differentiate those considering to buy hybrid
    • • Figure 55: Concerns that may prevent purchase of a hybrid/electric vehicle, by engine type of vehicle considering to buy, August 2012
    • Potential hybrid buyers want dependable cars
    • • Figure 56: Features most important to possible buyers of a hybrid/electric vehicle, by engine type of vehicle considering to buy, August 2012

16. Features Most Important to Hybrid/Electric Car Buyers

    • Key points
    • Utility and dependability important to women hybrid buyers
      • Figure 57: Features most important to possible buyers of a hybrid/electric vehicle, by gender, August 2012
    • Young consumers want look and feel of luxury/sports cars
      • Figure 58: Features most important to possible buyers of a hybrid/electric vehicle, by age, August 2012
    • Middle-income respondents looking for good value
      • Figure 59: Features most important to possible buyers of a hybrid/electric vehicle, by household income, August 2012

17. Type and Number of Vehicles Owned

    • Key points
    • Overview
    • Hybrid and electric vehicles likely to be second cars
      • Figure 60: Number of cars/trucks per household, engine type in vehicle currently owned,, August 2012
    • Many more respondents interested in buying hybrid and electric than own one
      • Figure 61: Engine type in vehicle currently owned, by engine type of vehicle most likely to consider for next purchase, August 2012
    • Young professionals most interested in hybrid and electric vehicles
      • Figure 62: Engine type of vehicle most likely to consider for next purchase, by age, August 2012

18. Extra Spend for Hybrid/Electric Version

    • Key points
    • Respondents would pay average premium of $2,000 for hybrid/electric vehicle
      • Figure 63: Average amount extra would spend to buy a hybrid or electric vehicle, by gender, August 2012
    • Younger respondents more willing to pay a premium for hybrid
      • Figure 64: Average amount extra would spend to buy a hybrid vehicle, by age, August 2012

19. Attitudes Regarding Hybrid/Electric Vehicles

    • Key points
    • Fewer than 10% of respondents want smallest car possible
    • • Figure 65: Attitudes to hybrid and electric cars, by gender, August 2012
    • Young consumers see easy return of money spent on hybrid/electric cars
      • Figure 66: Attitudes to hybrid and electric cars, by age, August 2012
    • More affluent consumers want gasoline option when necessary
      • Figure 67: Attitudes to hybrid and electric cars, by household income, August 2012

20. Concerns Regarding Hybrid/Electric Vehicles

    • Key points
    • Battery issues top list of concerns
    • • Figure 68: Concerns that may prevent purchase of a hybrid/electric vehicle, by gender, August 2012
    • Practicality and performance important to young consumers
      • Figure 69: Concerns that may prevent purchase of a hybrid/electric vehicle, by age, August 2012
    • Battery concerns exists across all household income groups
      • Figure 70: Concerns that may prevent purchase of a hybrid/electric vehicle, by household income, August 2012

21. Manufacturer Most Likely to Consider for Dream Hybrid/Electric Car

    • Key points
    • One in five respondents look to Toyota when considering hybrid/electric
      • Figure 71: Manufacturer most likely to consider for dream hybrid/electric car, by gender, August 2012
    • Young consumers prefer Ford
      • Figure 72: Manufacturer most likely to consider for dream hybrid/electric car, by age, August 2012
    • Those who prefer Toyota want value, dependability
      • Figure 73: Features most important to possible buyers of a hybrid/electric vehicle, by manufacturer most likely to consider for dream hybrid/electric car, August 2012

22. Impact of Race and Hispanic Origin

    • Key points
    • Hispanic respondents twice as likely to own hybrid car
      • Figure 74: Engine type in vehicle currently owned, by race/Hispanic origin, August 2012
    • Hispanic hybrid owners choose options
      • Figure 75: Hybrid owners’ attitudes/opinions about auto options and accessories, by race/Hispanic origin, January 2011-March 2012
    • Hispanics less likely to have seen electric car advertisements
      • Figure 76: Attitudes to hybrid and electric cars, by race/Hispanic origin, August 2012
    • Hispanics more concerned about potential savings at pump
      • Figure 77: Concerns that may prevent purchase of a hybrid/electric vehicle, by race/Hispanic origin, August 2012

23. Appendix: Other Useful Tables

    • Attitudes and opinions and age
      • Figure 78: Hybrid owners’ general attitudes/opinions about cars and driving, by age, January 2011-March 2012
    • Attitudes and opinions and household income
      • Figure 79: Hybrid owners’ general attitudes/opinions about cars and driving, by household income, January 2011-March 2012
    • Attitudes and opinions regarding buying decisions and gender
      • Figure 80: Attitudes/opinions about automobiles, by gender, January 2011-March 2012
    • Attitudes and opinions regarding buying decisions and household income
      • Figure 81: Hybrid owners’ attitudes/opinions about the car buying decision, by household income, January 2011-March 2012
    • Attitudes and opinions regarding options/accessories and gender
      • Figure 82: Attitudes/opinions about automobiles, by gender, January 2011-March 2012
    • Attitudes and opinions regarding options/accessories and age
      • Figure 83: Hybrid owners’ attitudes/opinions about auto options and accessories, by age, January 2011-March 2012
    • Premium willing to spend and household income
      • Figure 84: Premium willing to spend to get hybrid vehicle, by household income, August 2012

24. Appendix – Social Media – Hybrid and Electric Vehicles

    • Brand usage and awareness
      • Figure 85: Awareness of Nissan Leaf and Chevy Volt, non-owners, by demographics, October 2012
      • Figure 86: Awareness of Nissan Leaf and Chevy Volt, non-owners, by demographics, October 2012 (continued)
    • • Figure 87: Awareness of Toyota Prius and Ford Escape, by demographics, October 2012
      • Figure 88: Ownership and awareness of Toyota Prius and Ford Escape, by demographics, October 2012 (continued)
    • • Figure 89: Awareness of Honda Insight and BMW Active Hybrid, non-owners, by demographics, by demographics, October 2012
      • Figure 90: Awareness of Honda Insight and BMW Active Hybrid, non-owners, by demographics, by demographics, October 2012 (continued)
    • Brand interaction
    • • Figure 91: Interaction with Nissan Leaf brand, by demographics, October 2012
      • Figure 92: Interaction with Nissan Leaf brand, by demographics, October 2012 (continued)
    • • Figure 93: Interaction with Chevy Volt brand, by demographics, October 2012
      • Figure 94: Interaction with Chevy Volt brand, by demographics, October 2012 (continued)
    • • Figure 95: Interaction with Toyota Prius brand, by demographics, October 2012
      • Figure 96: Interaction with Toyota Prius brand, by demographics, October 2012 (continued)
    • Online conversations
      • Figure 97: Percentage of consumer conversation, by hybrid and electric car brands, Jul. 1-Oct. 20, 2012
      • Figure 98: Online mentions of named hybrid and electric car brands, by day, Jul. 1-Oct. 20, 2012
      • Figure 99: Mentions of hybrid and electric cars, by page type, Jul. 1-Oct. 20, 2012
    • • Figure 100: Hybrid and electric car brands, mentions by type of conversation, Sep. 1-Oct. 20, 2012
      • Figure 101: Major areas of discussion, mentions by type theme, by day, Jul. 1-Oct. 20, 2012
    • • Figure 102: Major areas of discussion, by type of website, Jul. 1-Oct. 20, 2012

25. Appendix: Trade Associations