Alternative fuel vehicle sales in the U.S grow by 73%, says Mintel

By Editor

Share

Alternative fuel vehicle sales in the U.S grow by 73%, says Mintel

Greentech Lead America: Sales of alternative fuel
vehicles in the U.S have grown by an astounding 73 percent, with nearly 440,000
hybrid, plug-in hybrid, and electrics sold thus far this year, according to the
latest report from Mintel.

The rapid sales growth in hybrid and electric vehicles
makes the segment the fastest growing in the US for 2012, supplanting the still
fast growing, compact car vehicle segment, the report said.

The number of plug-in and electric models available to
the public has nearly quadrupled over the year too (from 3 models in 2011, to
the 11 available today). And, despite the dramatic growth in 2012, hybrids and
electrics will make even more headwind in the US market over the coming years.

Over the past nine years the share of hybrid and electric
cars has grown from virtually zero (0.5 percent) in 2004 to 3.3 percent in 2012
of all vehicles sold. Looking forward, Mintel forecasts sales of hybrid and
electric cars to exceed 535,000 units by the end of 2013, or a 14 percent
increase in sales over 2012 estimates.

By 2017 Mintel forecasts that sales of hybrid and
electric vehicles will reach 850,000 units as newer models gain traction with
consumers. The market is expected to account for 5 percent of the total US car
market by that date (2017).

According to Colin Bird, automotive analyst at Mintel,
new midsize hybrid models, such as the Toyota Prius v and Chevrolet Malibu Eco,
have proven popular with consumers, in particular families, who want to buy
green without sacrificing other features that fit their lifestyles.

The segment will grow even further in 2013, with the
launch of several new models, including the full Ford Fusion Hybrid series, and
the Honda Accord Hybrid, which will fulfill a wider variety of needs than
conventional compact hybrids.

Midsize plug-in hybrids will also enter the mainstream in
2013, with the introduction of the Ford Fusion Energi and the Honda Accord
Plug-in, which will further improve mainstream acceptance of this, still,
fairly novel powertrain segment, Bird added.

Consumer concern for the high and rising cost of fuel may
drive the development of the market even further, according to analysts at
Mintel. More than one third (34 percent) of younger consumers aged 25-34, think
that “it is easy to make back the extra money spent on a hybrid car in
savings at the pump”.

However, there are still some factors preventing
consumers from buying a plug-in hybrid or electric car. Battery issues are a
top concern among consumers, with 87 percent worrying about the length of time
the battery will run for, 86 percent are concerned about not being able to find
somewhere to recharge their vehicle while on a trip and the same number (86
percent) about availability of places to charge outside the home or their area
of living. Another source of apprehension for 85 percent of US consumers is the
recharge time of plug-ins and EVs.

Price remains the biggest hurdle for plug-in hybrids and
electric cars as they enter the market. Mintel’s consumer survey showed that
the average consumer was willing to spend about$2,000 more to upgrade from
a conventional car to an electric-only version of the same car. However,
today’s plug-in hybrids and electric cars cost anywhere between $10,000-$20,000more
than their conventional counterparts.

editor@greentechlead.com

Latest News

Related