High gas prices a boon to electric vehicles, hybrids?
If gas prices hit $4 a gallon, 80 percent of consumers say their vehicle purchase will be affected, according to a survey by Kelley Blue Book Intelligence. Should gas hit $5 a gallon, 95 percent of car shoppers say those prices will change their vehicle selection process.
In many respects, the Kelley Blue Book (KBB) survey is common sense. It's only natural that higher gas prices will make smaller cars, hybrids and electric vehicles more popular. However, the KBB survey hints at the tipping point price where the Chevrolet Volt and Nissan Leaf---two cars with weak sales in the U.S.---become more viable. Should gas prices continue to surge the market for electric vehicles from the likes of GM, Ford, Toyota, Nissan and upstarts like Tesla (right) should garner a warm reception.
The gas price where car shoppers change their buying habits is $3.50 a gallon.
If gas prices are $2.75 to $3.00 a gallon car shoppers will simply buy the car they want. At $3.50 a gallon, half of car shoppers say the price of gas will influence their decision.
KBB's survey is based on a small sample---380 new and used car shoppers---but the company says interest in fuel efficient and alternative-fuel cars has spiked on its Web site. KBB reckons that stabilizing gas prices will lower interest in fuel efficient cars. If the gas price spikes continue interest in EVs and hybrids will increase.
The real upshot here is that automakers need a diversified portfolio. Automakers are in a weird spot---they have to guess long-term trends yet cater to short-term buying quirks. Consumers make long-term buying decisions---like a car---based on short-term information.
Bottom line: With the national gas price averaging $3.39 and a lot of turmoil in the Mideast it could be time for EVs and hybrids to shine---at least for a bit.
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Related:
- GM's Volt sales: No need to panic...yet
- With new Ford EVs, plug-in electric vehicle market heats up
- With Focus Electric, Ford goes for holistic charging, app, interface approach
- Tesla's Model S electric sedan on track; Crossover planned
This post was originally published on Smartplanet.com