Consumers Balk at Buying Battery Electric Cars, Fearing They Won't Go the Distance

There’s a new psychological problem. It’s called “range anxiety” and it affects consumers who are considering battery electric vehicles. 

According to a report just released by J.D. Power and Associates, a Westlake, California, marketing information firm, although sticker price can be a significant deterrent to buying any type of alternative vehicle, functional concerns are even more of a disincentive to consumers who are considering battery electric cars. Driving range and the availability of charging sites away from home are the two concerns cited most often by those who have shied away from these models. This "range anxiety" is responsible for the making these cars the least desirable among the alternatives on the market.

The inaugural 2011 U.S. Green Automotive Study examined attitudes of U.S. consumers toward four primary alternative powertrain technologies: hybrid electric vehicles; clean diesel engines; plug-in hybrid electric vehicles; and battery electric vehicles. 

Overall, it found  that, while consumers often cite saving money on fuel as the primary benefit of owning an alternative vehicle, the reality for many is that the sticker cost of these cars is too high—even as fuel prices in the United States approach record levels—and they worry that maintenance costs may be exorbitant, too.

“The bottom line is that most consumers want to be green, but not if there is a significant personal cost to them, "said Mike VanNieuwkuyk, Executive Director of Global Vehicle Research at J.D. Power and Associates.

What’s more, in 2011, the price of hybrids has become even more of an issue. At the end of 2010, tax credits from the Energy Policy Act of 2005 were phased out. Therefore, “Without a tax credit to offset the price premium, consumers must absorb all of this additional cost,” said VanNieuwkuyk.

Consumers who are not considering an alternative vehicle also recognize the fuel-cost savings these vehicles can offer. However, they cite significant perceived or actual impediments to ownership in addition to purchase price, including driving range, increased maintenance costs, and compromised vehicle performance. These consumers are far more likely to switch into a more fuel-efficient vehicle powered by a traditional internal combustion engine than into an alternative powertrain vehicle.

Bearing out the validity of the study, consumers who arrived at The New York International Auto Show in April found the spotlight focused on fuel-efficient hybrid electric vehicles and high-efficiency, conventional gasoline cars that get 40 or more miles per gallon.

 As for clean diesel engines, “[Their] advocates tend to be some of the most vocal among consumers who tout the benefits of their chosen technology," said VanNieuwkuyk. "However, this consumer group is relatively small. Clean diesel technology continues to struggle not only against concerns about cost and perceived fuel availability, but also against the lingering perception that diesel is 'dirty.'"

By the end of 2016, J.D. Power and Associates expects 159 hybrid and electric vehicle models to be available for purchase in the U.S. market. Even with all of these choices, VanNieuwkuyh predicted that, only through promotion and education will significant numbers of U.S. consumers become sufficiently comfortable with both the financial investment and, in some cases, the lifestyle changes, required to make the leap from traditional vehicles to alternative powertrain vehicles.

The 2011 U.S. Green Automotive Study combines information and insight from J.D. Power's primary consumer research, social media intelligence, forecasting and transactional sales data. The primary research includes a study of more than 4,000 consumers who indicate they will be in the market for a new vehicle within the next one to five years. The study was fielded in February 2011.