TO BEV OR NOT TO BEV
SELLING ELECTRIC VEHICLES TO TODAY’S CONSUMERS
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Ipsos
First acquisitions outside Europe
Ipsos foundedin Paris
IpsosacquiresSynovate
Ipsos acquires
RDA
Ipsos quoted on Paris Stock Exchange
First acquisitions outside France
1975 1990 1997 1999 2011 2015
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© 2018 Ipsos 3
Ipsos
Largest Custom Market Research
Company in the World(Publically Traded | Paris Stock Exchange)
Globally Recognized as Innovation
Leader in Market Research (2017 GRIT Report) – Green Book
Offices in 88 Countries and
Research in 100+
16,500+ Employees
100+ Million Interviews per Year
1
Ipsos RDAFive Decades of Automotive Research
in Customer Experience, Quality and
Product Innovation / DevelopmentSINCE 1969
© 2018 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.
© 2018 Ipsos 4
Ipsos – Global Team of Automotive Experts
Automotive Research Centers Organized by Territories USA | Germany | China | Brazil
Steering committee of automotive experts across all Ipsos Specializations
• Best practice sharing within one vertical
• More than 1,000 dedicated automotive experts with knowledge on local landscape and trends
© 2018 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.
© 2018 Ipsos 5
Gas or Electric? Are We Ready to Plug-In?
© 2018 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.
© 2018 Ipsos 6
Ipsos Automotive Navigator StudyA Global Look at Major Disruptors in the Automotive Industry
AV, ASSIST AND CONNECTED VEHICLES
Product features, configurations and consumer acceptance
ELECTRIC VEHICLES
Associations between ICE, BEV, HEV, PHEV; importance of EV in shared mobility
SHARED MOBILITY
Vehicle sharing, ride hailing, and other forms of alternative transportation
MULTI-MAJOR MARKET STUDY
Over 375,000 consumer surveys9 Countries• USA, UK, Germany, France, Italy,
Spain, Brazil, Japan and China
DISRUPTORS
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Ipsos Automotive Navigator Study: Electric VehicleInterest in a Battery Electric Vehicle
USA
6%
% “NEXT VEHICLE PURCHASE WILL
BE A BATTERY ELECTRIC VEHICLE”
8%
BRAZIL
23%
FRANCE
6%SPAIN
7%
ITALY
5%
UK
2%GERMANY
4% CHINA
13%
JAPAN
2%
% Estimate 2017 US BEV sales of overall new vehicle sales
(~106k units)
0.6%
10x
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© 2018 Ipsos 8
Ipsos Automotive Navigator Study: Electric VehicleConcern with Gas Prices
USA 6%
64% concern
$0.68 per liter (USD)
0.41% of daily wages
per liter of gas
BRAZIL 23%
90% concern
$1.08 per liter (USD)
3.97% of daily wages
per liter of gas
JAPAN71% concern
$1.12 per liter (USD)
1.07% of daily wages
per liter of gas
CHINA 13% 68% concern
$0.94 per liter (USD)
3.99% of daily wages
per liter of gasITALY 5%
81% concern
$1.71 per liter (USD)
1.96% of daily wages
per liter of gas
SPAIN 7%74% concern
$1.33 per liter (USD)1.70% of daily wages
per liter of gas
FRANCE 6%72% concern
$1.51 per liter (USD)1.38% of daily wages
per liter of gas
UK 2%71% concern
$1.49 per liter (USD)1.38% of daily wages
per liter of gas
GERMANY 4%
65% concern
$1.56 per liter (USD)
1.50% of daily wages
per liter of gas
2 most favorable conditions / 2 least favorable conditions
Source: https://www.bloomberg.com/graphics/gas-prices/#20172:United-States:USD:g
• Age 18-34: 75%• Age 35-50: 72%• Age 51+: 64%
LEVEL OF CONCERN VARIES BY COUNTRY
• Brazil and Italy have greatest concern• USA and Germany have least concern
COST PER LITER ($US)
• Italy and Germany are highest • USA and China are lowest
PROPORTION OF DAILY WAGES
• Brazil and China have highest • USA and Japan have lowest
More Concerned
Highest Interest in Electric Vehicles
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Environmentally Benefits Economic Benefits Comfort and Convenience Benefits
43% Produce less pollution/gas emissions
36% Environmental friendliness
35% Save fuel resources
29% Use renewable energy
43% Cheaper to run (than using gas)
34% Cheaper to maintain (less service visits)
27% Cash benefits or tax subsidy
33% Ability to charge the vehicle at home
22% Are quiet when driving
Info and Trust Barriers Economic Barriers Range and Charging Barriers
23% Don’t know enough about them
18% Are not “tried and true” yet
35% Cost to replace battery pack
34% Uncertain about battery life/replacement
32% High cost of ownership
18% Attractive models are too expensive
40% Public charging stations not easy to find
36% Range not suitable for long-distance travel
22% Install of charging station is expensive
22% Long charging times
Ipsos Automotive Navigator Study: Electric VehicleUS Market: Benefits and Barriers of Battery Electric Vehicles
AT LEAST 1 IN 5 US CONSUMERS VIEW BATTERY ELECTRIC VEHICLES TO OFFER BENEFITS WITH:
HOWEVER, APPROXIMATELY 1 IN 5 ALSO CITE POTENTIAL BARRIERS OF BATTERY ELECTRIC VEHICLES WITH:
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Ipsos Automotive Navigator Study: Electric VehicleUS Market: The “Attractive” Models are Expensive
IT’S ALL ABOUT THE BATTERIES
• Batteries make up a third of the costs of an electric vehicle
• As battery costs continue to fall, demand for electric vehicles will rise
• By 2022 electric vehicles will cost the same as their internal-combustion counterparts
RISE OF ELECTRIC VEHICLES
• 2017 electric vehicle sales (BEV and plug-in) increased by 27% over 2016
Ford Focus ElectricMSRP $29,120
Chevrolet BoltMSRP $36,620
Hyundai IONIQ ElectricMSRP $29,500
Nissan LeafMSRP $29,990
Honda Clarity ElectricLease: $269/month
Tesla Model 3MSRP $35,000
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© 2018 Ipsos 11
59
68
81
82
84
87
93
107
115
124
125
220
238
257
315
Mitsubishi i-MiEV
Smart Electric Drive
BMW i3
Chevrolet Spark EV
Fiat 500e
MB-Class Electric Drive
Kia Soul EV
Nissan LEAF
Ford Focus Electric
Hyundai Ioniq
Volkswagen e-Golf
Tesla Model 3
Chevrolet Bolt
Tesla Model X
Tesla Model S
Ipsos Automotive Navigator Study: Electric VehicleUS Market: Range Anxiety
AVERAGE DAILY COMMUTE BY CAR (MILES)
16.9
SINGLE CHARGE RANGE OF US AVAILABLE BEVS (MILES)
© 2018 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.
ACCEPTABLE RANGE ON A SINGLE
FULL CHARGE (MILES)
260
© 2018 Ipsos 12
Ipsos Automotive Navigator Study: Electric VehicleUS Market: More Product Challenges
HOME CHARGER
• Many options, ranging from $300-$1,200 for level 2
BATTERY LIFE
• Most manufacturers offer 8-year/100,000-mile battery warranties
RECHARGE TIME
• Full recharge can take 4 to 8 hours
• “Fast charge" to 80% capacity in 30 minutes
FINDING PUBLIC CHARGING STATIONS
• Map systems in-vehicle, on mobile devices and online offer charging station location and routing
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© 2018 Ipsos 13
EV product issues are being addressed and the market for EVs is growing…
… How about shopping for an electric vehicle?
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Ipsos EV Sales Experience Mystery ShopElectric Vehicle Selling Dealerships
10 EV BRANDS PLUS 1 DEALER GROUP CAPTURE THE EV SALES EXPERIENCE
• View the dealer website, schedule appointment, visit the dealer, go through the sales process, take a test drive
• Did not include the finance process
DOCUMENT BY WAY OF SCORECARD ATTRIBUTES
• Greeting, EV-dedicated salespeople, knowledge of EVs, availability of vehicles, etc.
DEBRIEFS CONDUCTED
with mystery shoppers to gather a first-hand recap of their experience
ACROSS 10 CITIES
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Ipsos EV Sales Experience Mystery ShopTesla vs Everybody
Selling Electric Vehicles(% Excellent/Very Good)
Salesperson Knowledge of
EVs / Innovation
EV Availability
EVs Featured at Dealer
Overall EV Shopping
Experience
Salesperson Knowledge of
EVs / Innovation
EV Availability
EVs Featured at Dealer
Overall EV Shopping
Experience
TESLA
EVERYBODY ELSE
100% 84% 89% 100%
66% 57% 27% 57%
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© 2018 Ipsos 16
-100
-80
-60
-40
-20
0
20
40
60
80
100100%
83%
79%
37% 42%
74%
90%
18% 17%31%
EV Featured On Dealer Website
Rebate Info Online
Tax Incentive Info Online
View EV Inventory
Online
Charging Info Online
Ipsos EV Sales Experience Mystery ShopPre-Shop
EVERYBODY ELSE
TESLA
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© 2018 Ipsos 17
Ipsos EV Sales Experience Mystery ShopIn-Dealership EV Information | Vehicles
TESLA
-100
-80
-60
-40
-20
0
20
40
60
80
10084%
24%
84% 79%
0%16%
17% 16%7%
63%
SignageLogos /
BrandingBrochuresImages
Nothing was
Displayed
36%
89%
54%
100%
74%84%
EV in Showroom
EV on Lot
5+ EVs
EVERYBODY ELSE
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© 2018 Ipsos 18
Ipsos EV Sales Experience Mystery ShopSalesperson
TESLA
-100
-80
-60
-40
-20
0
20
40
60
80
100 100%
25%
100%
67%
42%
85%78%
30%
86%
Dedicated EV Salesperson
Had EV Ready upon
Arrival
Had EV Info Ready upon
Arrival
Understand Shopper’s EV Needs
Able to Explain
Features
16%
NATried to Sell
Non-EV Model
100%with appointment or online requests
EV
EVERYBODY ELSE
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© 2018 Ipsos 19
Ipsos EV Sales Experience Mystery ShopProduct Availability | Test Drive
TESLA
-100
-80
-60
-40
-20
0
20
40
60
80
100
68%
67%
26%
5%
89%
19% 14%
91%
28%
Desired Product
AvailableNot Available
Provided a Test Drive
Similar but Not Exact
Salesperson Offered
72%
88%
Consumer Had to Ask
12%
EVERYBODY ELSE
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© 2018 Ipsos 20
SummaryElectric Vehicles Look to be a Viable Choice for Consumers
© 2018 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.
PRODUCT PRODUCT SUPPORT SALES (AND SERVICE) PROCESS
Improvements in driving range, on verge of matching refueling cycle of gas engines
More appealing styling, not uniquely “green” car appearance
Cost moving closer to gas engines, projected to be equal in 5 years
Charging concerns remain as consumers worry about availability, time to charge abroad and the install process and costs at home
Lacking complete consumer trust to go EV, need more/better information on rebates, tax incentives, battery life and replacement, cost of ownership, etc.
Lack of consistency within brands indicates lack of process
Salespeople less familiar with EVs than gas engine vehicles –easier to default to “what we know”
Need more incentives, better info and greater product availability to sell EVs
© 2018 Ipsos
For more information please contact:
© 2018 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.
Mike VanNieuwkuykSenior Vice President, Ipsos RDA248 | 750 [email protected]
