By Deborah Grieb, Director of Marketing and Insights
Plug-in hybrids in general have been a tough sell, partly because after all these years, their benefits are hard for many consumers to understand, and people tend not to spend lots of money on things they don’t understand.
While plug-in hybrids have only seen mild success, a new type of plug-in hybrid is about to hit showrooms. Extended Range Electric Vehicles (EREVs) provide the driver with much more all-electric range, typically well over 100 miles, than traditional PHEVs, which typically can drive about 25-50 miles on electricity alone. For both types of PHEVs, once the battery is discharged, a gasoline engine turns on to keep the vehicle moving - to oversimplify things a bit. Unlike pure battery EVs, there is no range anxiety in either type of PHEV because of their gasoline engines.
While plug-in hybrid demand is modest overall - with only 8% of new vehicle shoppers saying they want a PHEV as their next vehicle - over half of PHEV shoppers (55%) would prefer an EREV over a traditional PHEV, even with an associated price premium.
Some key differences with EREV intenders compared to traditional PHEV intenders include being much more likely to be women (47% vs. 36%), and they’re much more likely to own their own single detached home (54% vs. 42%). The perceived safety and security afforded by EREVs’ longer all-electric range may be appealing to some women, and EREVs’ large battery packs are better and more conveniently serviced with a charger at home, which is usually only possible to have with detached single-family home ownership.
In addition, EREV intenders are much more likely than traditional PHEV intenders to do long-distance road trips, drive on freeways regularly, drive in stop-and-go traffic regularly, and commute to work or school. Thus, there is definitely a segment of new vehicle shoppers for whom EREVs may address their needs well. The big problem will be the same as for traditional PHEVs: can automakers successfully explain the benefits of EREVs to consumers? That, and pricing, will ultimately determine their success and relevance in the U.S. market.