All the recent attention paid to electric vehicles, particularly those that run without gasoline, may not translate into sales, unless fuel prices skyrocket, a breakthrough technology emerges, or the government intervenes with incentives, according to a recent report.
J.D. Power and Associates predicts consumers won't be abandoning their petroleum-based fuels over the next decade in its new report, "Drive Green 2020: More Hope than Reality." As the title suggests, the market research firm concludes the market must overcome several consumer concerns before emerging technologies for hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs) reach a critical mass.
"While considerable interest exists among governments, media and environmentalists in promoting HEVs and BEVs, consumers will ultimately decide whether these vehicles are commercially successful or not," John Humphrey, J.D. Power and Associates senior vice president of automotive operations, said in a statement. "Based on our research of consumer attitudes toward these technologies -- and barring significant changes to public policy, including tax incentives and higher fuel economy standards -- we don't anticipate a mass migration to green vehicles in the coming decade."
The firm predicts global HEV and BEV sales will total 5.2 million units in 2020, or roughly 7.3 percent of total vehicles sales. That compares to 2.2 percent of total vehicles sales to be sold by the end of the year, or approximately 954,500 vehicles.
According to the report, consumers don't like the way electric vehicles look, and they also worry about their reliability, driving range, and recharging times. They also don't care for the price premium, despite the promised fuel savings, which consumers are also confused about.
The price premium and economic are blamed for a near 90 percent decline in new electric cars in the U.K., according to reports last week. But experts believe an upcoming government grant may lift the fortunes of electric vehicles. In January, electric vehicle buyers will receive a £5,000 subsidy through at least March 2012, the Guardian reported last week.
Other incentives, including a 100 percent congestion charge discount for low-carbon vehicles in London, are designed to spur demand. The government has also committed to installing 13,500 electric vehicle charging stations.
Image CC licensed by Flickr user frankh.

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