Alexander Edwards was one of the founding members of Strategic Vision, Inc., and is the partner heading the automotive division of the consulting and research firm based in San Diego, California.
Edwards joined John Batchelor, host of the JohnBatchelorshow.com and myself to talk about results of their New Vehicle Experience Study.
Strategic Vision gives a New Vehicle Experience Study (NVES) that surveys 300,000 new vehicle buyers annually. The study show:
1. Alternative Fuel Interest in 2011
a. Hybrid Electric Vehicles currently have the most interest of the US automotive buyer
i. Plug-In and Battery only Electric Vehicles generate weaker interest
ii. Natural Gas Vehicles currently generate the weakest interest
b. Almost 30% of all new vehicle buyers have no interest in paying any additional money for an alternate fueled vehicle.
i. An additional 20% would only be willing to pay an additional $10 a month for such a vehicle
ii. The next 40% of US buyers would be willing to increase their payment between $10 – $100
1. But it is important to note that other aspects of the vehicle can not be sacrificed for this
2. For example, charging $50 a month more for a hybrid vehicle *and* removing $2,000 worth of content from the vehicle would likely not be acceptable
2. What will US customers definitely consider in the future
a. Ford has had the largest increase in future definite consideration since 2005 and is very close to brands that generate the highest definite consideration, Honda and Toyota
b. Hyundai has also increased steadily over the past 10 years, coming from a position where few would definitely consider them in the past
3. Consideration of products from China
a. Today only 17% of US buyers would consider a vehicle from China
i. As this percentage is higher than where brands such as Hyundai found themselves 10 years ago, it is clear that if China companies offer the right products at the right prices “ they may become real competition to both established and emerging automotive companies doing business in the US.