ALEXANDRIA, Va. -- Falling gas prices are undermining a key motivator for alternative fuel vehicles purchases, a new NACS consumer survey shows.
Eighty percent of consumers who are considering an alternative fuel vehicle told NACS that their main reason is to save money on fuel costs. But this interest declines along with gas prices, with each 10-cent drop in gas prices correlating to a 1% drop in the percentage of those who would consider an alternative vehicle. So with gas at $5 per gallon, 78% would consider an alternative vehicle, compared to 68% at $4 gas prices and only 56% at $3 gas.
The survey was conducted in early November at a time when retail gasoline prices were averaging $3.077 per gallon nationwide, according to the Energy Information Administration (EIA). Since then, prices as of Dec. 8 fell to an average of $2.679. The EIA forecasts retail gas prices to average $2.60 per gallon in 2015 based on a longer-term trend of falling crude prices.
Hybrids remain the most popular alternative-fuel vehicle under consideration, chosen by 72% of consumers, followed by flex-fuel vehicles at 42%, all electric at 34% and hydrogen fuel cell and diesel at 22% each.
Underlining the impact of lower gas prices, consumer interest in all-electric vehicles has fallen 21 points from April 2014, when gas prices were 90 centers per gallon higher than now. The survey also found that men are 13 points more likely to consider all-electric vehicles than women (40% vs. 27%, respectively), possibly because the latter have more range-anxiety concerns.
Beyond saving price on fuel, other top factors that would motivate consumers to consider an alternative fuel vehicle include protecting the environment (51%), reducing dependence on foreign oil (45%), reducing their carbon footprint (42%) and increasing their driving range (41%).
Some growth opportunities for alternative fuel vehicles do remain, however. Consumers over the age of 50 are most likely to consider an alternative fuel vehicle to reduce dependence on foreign oil, or 59% compared to 35% of those between 18 and 34 years old. Young consumers, meanwhile, indicate more interest in how these vehicles fit their lifestyle, or 22% vs. 8% of those older than 50.
The survey was conducted with 1,110 gas consumers by Penn, Schoen & Berland Associates LLC between Nov. 5 and 7, 2014. Click here for a summary of the results.
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