Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- The market
- Hybrid and electric sales are set to continue to increase
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- Figure 1: Hybrid and electric new car registrations (Great Britain), by volume *, 2011-21
- Hybrid electric vehicles dominate when it comes to sales
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- Figure 2: Hybrid and electric car new registrations by type (Great Britain), by volume, 2011-16
- Hybrid and electric car parc set to approach 350,000 vehicles in 2016
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- Figure 3: Hybrid and electric vehicle car parc (Great Britain), by volume, 2011-16
- Franchised dealers dominate the market
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- Figure 4: Sales of new and used hybrid and electric cars, by channel, 2015
- Companies and brands
- Not all car manufacturers are active in the hybrid and electric market
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- Figure 5: ULEV Manufacturer share, Q4 2015 and Q2 2016
- Promotional expenditure on hybrid and electric cars has fluctuated recently
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- Figure 6: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2011-15
- The consumer
- Few adults own a hybrid/electric car
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- Figure 7: Vehicle ownership, September 2016
- Sizeable minority interested in buying a hybrid/electric car
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- Figure 8: Interest in owning a hybrid/electric car, September 2016
- Internet and dealers important for information
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- Figure 9: Sources of information on electric/hybrid cars, September 2016
- Costs are a key consideration for buyers
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- Figure 10: Factors associated with purchasing a hybrid/electric car, September 2016
- Charging and costs dominate electric vehicle worries
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- Figure 11: Concerns about owning 100% electric vehicles, September 2016
- Ease, and flexibility in use, typify views towards electric vehicles
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- Figure 12: Statements associated with hybrid/electric vehicles, September 2016
- Awareness of fuel cell technology is low
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- Figure 13: Awareness of fuel cell electric vehicles (FC-EVs), September 2016
- What we think
Issues and Insights
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- Plug-in hybrid electric market set for take-off
- The facts
- The implications
- EVs appear more of a long-term bet
- The facts
- The implications
- Dealers and the internet should be part of a wider communication strategy
- The facts
- The implications
The Market – What You Need to Know
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- Hybrid and electric vehicle sales benefit from strong growth…
- …with electric vehicles seeing the strongest expansion in sales
- Ultra-low emission vehicles account for a much stronger share of sales
- Hybrid and electric vehicles approach 1% of the car parc
- Number of models offered records steady expansion
- Expansion of charging network is proving helpful
- Franchised dealers dominate the market
- UK government is active in the uptake of hybrid and electric vehicles
Market Size and Forecast
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- Hybrid and electric car sales record strong growth
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- Figure 14: Hybrid and electric new car registrations (Great Britain), by volume*, 2011-21
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- Figure 15: Hybrid and electric new car registrations (Great Britain), by volume*, 2011-21
- Electric vehicle registrations begin to challenge hybrid sector
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- Figure 16: Hybrid and electric car new registrations by type (Great Britain), by volume, 2011-16
- Forecast methodology
- The impact of the EU referendum vote
- Wider demand for vehicles is set to soften after a period of expansion
Market Segmentation
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- North/South divide evident when it comes to sales of new hybrid and electric cars
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- Figure 17: Hybrid and electric new car registrations (Great Britain by region), by percentage*, 2011, 2013, 2015
- PH-EVs largest segment of the ULEV market
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- Figure 18: ULEV sales (Great Britain), by volume, 2012-16
- Hybrid and electric cars are expected to account for 1.1% of the total car parc in 2016
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- Figure 19: Hybrid and electric vehicle car parc (Great Britain), by volume, 2011-16
- Hybrid electric vehicles dominate the hybrid and electric car parc…
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- Figure 20: Hybrid and electric vehicle car parc (Great Britain), by volume, 2011-16
- … although growing demand for PH-EVs is raising their profile
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- Figure 21: Hybrid and electric vehicle car parc (Great Britain), 2011-16
Channels to Market
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- Franchised dealers dominate
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- Figure 22: Sales of new and used cars, by channel, 2013-15
- Little evidence of the internet playing a major role as a sales channel
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- Figure 23: Vehicle advertisements, by fuel type (ebay.co.uk), November 2016*
Market Drivers
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- GB’s love affair with the car continues
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- Figure 24: Number of licensed cars (Great Britain), 1995-2015
- Shift towards low carbon cars begins to take off…
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- Figure 25: Number of licensed cars (Great Britain) 1-100 g/km, 2001-15
- …although hybrid and electric vehicles are still a niche market
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- Figure 26: New car registrations, by fuel type, 2011-16
- Expansion in number of models also assists market
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- Figure 27: Development of ULEV models, 2012-15
- UK charging network sees expansion…
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- Figure 28: Number of charging locations and connectors, 2011-15
- …with faster connectors being installed
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- Figure 29: Development of charging landscape, 2011-15
- Prices remain a major barrier for buyers
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- Figure 30: On the road prices for leading hybrid and electric vehicles, November 2016
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- Figure 31: On the road prices for most popular alternative vehicles by selected segment, November 2016
- Recent falls in motoring expenses aren’t helping hybrid and electric cars
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- Figure 32: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2011-15
Regulatory and Legislative Developments
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- Office for Low Emission Vehicles
- Plug-in car grants
- Policy commitments
- Recent announcements
- FC-EVs (May 2016)
- Charging points (October 2016)
- Additional £35 million for ULEVs (October 2016)
- Further support given in the November 2016 autumn statement
Companies and Brands – What You Need to Know
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- Mitsubishi and Nissan dominate the ULEV market
- Market growth sees fragmentation in terms of manufacturer share
- Considerable interest in research and development
- Advertising expenditure records yearly fluctuations
Market Share
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- ULEV market dominated by a small number of manufacturers
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- Figure 33: ULEV Manufacturer share, Q4 2015 and Q2 2016
- Outlander PHEV leads the ULEV sector
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- Figure 34: ULEV model sales by registration, 2012-16
Launch Activity and Innovation
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- First hydrogen refuelling station being installed within an existing forecourt
- Nissan develops world’s first Solid Oxide Fuel-Cell
- Nissan offers free home charging units to buyers…
- …while workplace charging grants are also launched
- Hyundai enters the hybrid and electric market
- Nissan takes a controlling stake in Mitsubishi
Advertising and Marketing Activity
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- Support for hybrid and electric cars has fluctuated in recent years
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- Figure 35: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2011-16
- Television increasingly dominates as the preferred promotional channel
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- Figure 36: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by media type, 2011-15
- Toyota has led the market since 2013
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- Figure 37: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by manufacturer, 2011-15
- Outlander and Auris account for over half of investment
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- Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by brand, 2011-15
- A note on adspend
The Consumer – What You Need to Know
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- Relatively few adults currently own a hybrid or electric car
- Interest in future ownership appears strong
- Websites and vehicle manufacturers are important channels for information
- Cost is a key barrier to ownership
- Charging is a particular concern for electric vehicle ownership
- Greater access to charging points is a key issue for many drivers
- Awareness of FC-EVs is low
Vehicle Ownership
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- Alternative fuelled vehicles fail to make an impact
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- Figure 39: Vehicle ownership, September 2016
- Certain groups are more likely to own a standard car…
- …than own a hybrid/electric car
Interest in Owning a Hybrid/Electric car
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- Potential for hybrid and electric cars could be significant
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- Figure 40: Interest in owning a hybrid/electric car, September 2016
- Young men have an especially strong interest in ownership
- Affluent adults are another important target market
- Older adults and less affluent need some convincing
- Could targeting parents stimulate demand?
- Non-car owners are much less interested in hybrid and electric vehicles
Sources of Information on Hybrid/Electric Cars
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- Internet and manufacturers are seen as the best sources of information
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- Figure 41: Sources of information on electric/hybrid cars, September 2016
- Dealers popular with older women while men prefer the web
- Young adults more likely to seek information from informal sources
- Specialist motor websites favoured by the most wealthy
- Family and friends are an important communication channel for those who don’t own a car
- TV and adverts are of interest to specific groups
Purchasing a Hybrid/Electric Car
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- Cost, availability and performance dominate as key features
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- Figure 42: Factors associated with purchasing a hybrid/electric car, September 2016
- Older adults appear more concerned about costs and performance
- Despite overall low level of importance, image is an issue to some
- Wealthy appear an especially demanding group
Concerns About 100% Electric Vehicles
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- Practicality and cost dominate ownership worries
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- Figure 43: Concerns about owning 100% electric vehicles, September 2016
- Wealthy have a number of concerns about EV ownership
- Costs and image dominate thinking for the youngest adults
- Costs dominate the thinking of urban drivers
- Image is more of a disadvantage for non-car owners
Statements Associated with Hybrid/Electric Vehicles
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- Ways to improve usability are most attractive
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- Figure 44: Statements associated with hybrid/electric vehicles, September 2016
- Young adults are more hopeful on charging
- Londoners want extra
- Wealthy more likely to view electric vehicles as a second car
- Wireless technology is especially important to those interested in purchasing a hybrid or electric vehicle
- Four customer groups identified
Awareness of Fuel Cell Electric Vehicles (FC-EVs)
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- Benefits from vehicles powered by fuel cells are not fully understood
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- Figure 45: Awareness of fuel cell electric vehicles (FC-EVs, September 2016
- Men have a higher level of awareness than women
- Wealth and location are also notable factors in affecting awareness
- Awareness of FCEVs is low amongst drivers without a car
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Exclusions
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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