Consumers Taking a 'Wait and See' Attitude in Their Adoption of Hybrid Vehicles

High consideration and awareness will compete with financial factors in purchase decisions

* 97 percent of respondents recognize "hybrid" vehicle terminology * 78 percent of respondents would consider buying a hybrid vehicle * 61 percent indicate they are concerned with price

SOUTHFIELD, Mich., July 11 -- Results from a forthcoming study to be released by the Polk Center for Automotive Studies on July 19 indicate while consumers are aware of and considering hybrid vehicles, they may not be "sold" just yet due to the additional costs associated with the technology.

The inaugural public opinion poll from this new division of R. L. Polk & Co. focused on regional and national attitudes and public awareness of hybrid technology in passenger vehicles and possible factors contributing to the adoption and success of this highly-monitored segment in the U.S. auto industry.

"We're seeing some pretty interesting dynamics regarding the whole hybrid vehicle agenda," said Lonnie Miller, director of Industry Analysis for Polk. "Input from our recent work shows that more than 97 percent of those we spoke to have heard of a 'hybrid' vehicle. This indicates the industry is doing a great job of getting the word out about this offering in cars and trucks." In addition, 78 percent of those surveyed say they would consider buying a hybrid.

However, dollars and cents will certainly come into play when the real purchase decisions take place. Sixty-one percent of those who never owned a hybrid vehicle indicate that the mere cost to buy this type of vehicle could be a deterrent to them. This mindset is reinforced by the fact that nearly 30 percent of respondents believe benefits they would receive from this type of vehicle would not justify the extra investment.

With the premium for a hybrid ranging from $4,000 - $9,000 more than a traditionally powered counterpart, selling the added benefits will be crucial. "We see the general desire for these types of vehicles growing," said Jeff Martini, vice president of Polk's OEM division, "However, the compelling argument to actually buy one has to be made more strongly as automakers introduce additional models equipped with this type of technology. It's still a 'wait and see' game out there, so with additional launches planned by several OEMs, it's only going to help the ability to prove the value of owning a hybrid vehicle."

Polk's study also found that nearly two-thirds of participants do not agree that hybrid vehicles are a fad. "This is a good indicator of the market taking automakers seriously as the industry continues to test, improve and launch vehicles with dual sources of power generation," said Miller.

Brand Presence

The automakers offering hybrid vehicles today appear to have made their offerings effectively known to the masses. When asked to identify which manufacturers people believe currently sell a hybrid car or truck today in the U.S., Honda, Toyota and Ford were the three top mentions, respectively. Of those answering, Honda received almost 58 percent recognition, while Toyota received 46 percent of the mentions, followed by Ford receiving 27 percent. "The message is certainly getting out there from the automakers that initially jumped into this space," said Martini. "Our 2004 year-end summaries indicate that Toyota's Prius alone commands nearly two-thirds of the hybrid segment. And from what we're hearing from consumers, Toyota, Honda and Ford certainly lead in being associated with the hybrid category."

About the Study

A total of 307 participants in this study, age 21 and older from across the U.S., provided views on this discussion. Results of the complete report will be available on July 19, 2005.

About The Polk Center for Automotive Studies

The Polk Center for Automotive Studies is a division of R. L. Polk & Co. that provides unique, comprehensive analyses and insight based on national or local public opinion polling and empirical Polk data. Findings from the Polk Center for Automotive Studies will provide the automotive industry and media with a deeper understanding of relevant and timely social, economic and marketplace issues affecting the automotive industry.

About R. L. Polk & Co.

R. L. Polk & Co. is the premier provider of automotive information and marketing solutions. Polk collects and interprets global data, and provides extensive automotive business expertise to help customers understand their market position, identify trends, build brand loyalty, conquest new business and gain a competitive advantage. Polk helps automotive manufacturers and dealers, automotive aftermarket companies, finance and insurance companies, advertising agencies, consulting organizations, government agencies and market research firms make good business decisions. A privately held global firm, Polk is based in Southfield, Mich. with operations in Australia, Canada, China, France, Germany, Japan, the Netherlands, Spain, the United Kingdom and the United States. For more information, please visit http://www.polk.com/ .