The shift to electric vehicles
December 11, 2011
As issues ranging from environmental concerns to fluctuating oil prices increasingly push consumers toward alternatives to combustion engines, the world seems poised for an electric vehicle (EV) rebirth. Today’s EV, however, is beyond anything nineteenth century drivers could imagine. From intelligent driving to proactive service and remote vehicle access, EVs can offer the safety and convenience today’s consumers crave.
However, hurdles to the adoption of electric vehicles remain, primarily concerns regarding price and range. To further understand these hurdles and gauge consumer and industry attitudes about EVs, we coupled interviews with executives from both leading and emerging automotive companies with a survey of consumers who rely on cars as their primary transportation mode.
Through our survey, we discovered that average consumers seem to appreciate the sustainability benefits of driving an electric vehicle. However, they aren’t particularly interested in paying a higher premium to purchase one. In addition, they have concerns regarding total miles per battery charge – despite the fact that today’s electric cars can typically handle the average driver’s daily needs without needing to recharge.*
A new IBM study also revealed another potential roadblock that can certainly be addressed by the industry – the simple fact that many consumers don’t know enough about electric vehicles. Even those who consider themselves knowledgeable have misconceptions. The good news for those interested in driving EV adoption is that there is substantial interest in electric vehicles. In fact, one fifth of drivers are either “very likely” or “likely” to consider purchasing an electric-only vehicle when shopping for a new car.
While consumer education is important, automakers must also rely on innovation to help drive EV adoption. We suggest they tap into the innovative technology inherent in the vehicle itself to enhance the driver’s experience through various connected features. In addition, the industry must be aggressive in developing new business models while forging new partnerships to build the infrastructure necessary for widespread EV adoption.
Download the complete IBM Institute for Business Value study (4.5MB)
