Many automobile industry executives believe that sales of traditional vehicles will peak before 2020 and are looking to electric-only vehicles (EVs) as one of the next hot products, but they will first have to address stringent consumer requirements about EV performance, recharging, and convenience, according to a new IBM (NYSE: IBM) survey of consumer attitudes and a recent study of auto industry executives. Taken together, the two studies uncover significant differences between the automobile industry executives IBM spoke to and consumers on the factors motivating consumers to purchase electric vehicles, with auto execs placing greater emphasis than consumers on government incentives and oil prices. The executives were also skeptical of consumers’ willingness to pay a premium for green vehicles. The insights, from IBM’s Institute for Business Value (IBV), are derived from a new survey of 1,716 U.S. drivers (1) and interviews with 123 auto industry executives (2). The study indicates that, even in these early days, there is a potentially large market for EVs.
