MINIUSA Research Shows Broadening Appeal of Electric Cars
Leading up to the release of the all electric MINI Cooper SE, MINIUSA has commissioned research into customer habits and expectations for electric cars. And some of the key findings may surprise you.
Official Release: As the popularity and availability of electric vehicles (EV) continues to grow in the U.S., consumers are zeroing in on how they want to use an EV. 63 percent of consumers said the best way to use an EV is for commuting or city driving, according to a new survey MINI USA recently commissioned from market research and business intelligence firm Engine International, Inc. At the same time, 73 percent of consumer surveyed said that battery range of up to 75 miles was sufficient for their daily use.
At the other end of the spectrum, the survey found that there is a need for additional consumer education around EVs, especially when it comes to charging technology and maximizing electric mobility solutions. Nearly three-quarters (74 percent) of consumers surveyed did not know where their nearest EV charging station was located. At the same time company data shows that 80 percent of EV owners tend to charge their cars at home.
When consumers were asked to choose an acceptable amount of time it should take to charge an EV, the most common answer (28 percent) was ‘‘I don’t know” followed by “30 minutes” (25 percent).
“It is important for us as a brand to understand how consumers want to use their electric vehicles, and what they know and don’t know about them as we move closer to the launch of the MINI Cooper S E electric vehicle in the U.S.,” said Andrew Cutler, Head of Corporate Communications, MINI USA. “The more intelligence we gather, the more we can educate consumers about the many benefits of electric mobility and what MINI has to offer in the new MINI Cooper S E electric vehicle coming in early 2020.”
Overall, two-thirds (66 percent) of consumers surveyed believe that EVs are for early adopters, underscoring the need to raise mainstream awareness around EV technology. This finding may also explain that while Federal Tax Credits on EVs certainly incentivize consumers to purchase an EV, there is still a subset of the population that is making the choice to purchase an EV based on factors beyond incentives.
Survey Methodology
The General Population survey was conducted among a sample of 1,004 adults comprising 502 men and 502 women 18 years of age and older on behalf of MINI USA. The online omnibus studies were conducted from March 21 – 24, 2019.
<p>Not only have sales of some MINI USA models been down recently, i3 sales have been down for the past four consecutive months.</p>
<p>Total i3 USA Sales:</p>
<p>Mar 2019 = 359 (-64.0%)
Feb 2019 = 350 (-43.8%)
Jan 2019 = 255 (-33.2%)
Dec 2018 = 356 (-47.0%)</p>
<p>It begs the question, why?</p>
<p>Here’s the reasons I can think of:
1) Gas is cheap in the US
2) Average US buyers want bigger vehicles and therefore most EV vehicles are out.
3) lack of Range combined with lack of charging station infrastructure. I commute 85 miles a day round trip and know of 1 public charging station near me – and that’s a few miles from my house. I’m in northeastern NJ which is a pretty congested area so there should be more charging stations.</p>
<p>Two reasons: price and range</p>
<p>$45k base price for 150 miles of range? … Why, when you can get the same range for half that price in a Nissan Leaf, 50% more range for $15k less in a Leaf Plus, or nearly twice the range for about the same price in a Tesla Model 3?</p>
<p>Never mind gas, the i3 just isn’t a very compelling option anymore in BEV market.
A used i3, however… different story.</p>
<p>Thank you for your thoughts on this. European car makers have always found selling small cars a tough nut to crack in the US – not least BMC with the original Mini. British sports cars of the 50s and 60s, and the VW ‘Bug’ were rare exceptions.</p>
<p>Nonetheless, the Cooper S E is expected to go on sale in the US at a similar base price to that of the F56 Cooper S with auto transmission. Both cars are expected to have similar performance.</p>
<p>Contrary to the official line, BMW insiders are saying that if the Cooper S E is well received globally, a four-door version might be given the green light. That would certainly broaden its appeal in Europe and Asia.</p>
<p>In my experience the actual market is more favorable to i3’s than you’re implying. In California, I leased a new $52k list i3 BEV for effectively (after rebates/incentives) $1,000 down and $335/mn (including tax) for 3 years. Before that I leased a Fiat 500e for $1,000 down and $200/mn for 3 years. I enjoyed the Fiat but the i3 is on another planet as a vehicle. The Model 3 is great but there’s no way you could get one for anywhere near that price. With various incentives, base price is meaningless, at least in California. I think you have to look at what’s happening in the market and BMW often discounts the i3, which – in reality – is a lot of car for the money. As far as MINI goes, I also have a hardtop S and would definitely consider an electric version. Will be very interested to check it out.</p>
<p>i3 sales in March ’19 were down 64% from March ’18, and year-to-date 2019 vs 2018 they’re down more than 50%. And the fact that you were able to lease a >$50k vehicle for just $335/mo doesn’t suggest a favorable market for that vehicle; quite the opposite.</p>
<p>I don’t mean it’s a good sign. I mean it’s a good deal.</p>
<p>That’s fine, but what we were talking about was the quality of the market for i3 sales. “Good deals” that cut lease payments nearly in half are not signs of a “favorable market”.</p>
<blockquote>63 percent of consumers said the best way to use an EV is for commuting or city driving… 73 percent of consumer surveyed said that battery range of up to 75 miles was sufficient for their daily use.</blockquote>
<p>This is ‘Merica… people don’t buy cars for city driving or daily use; people buy cars for the weekend getaway road trip. They buy trucks to be able to move large objects and off-road SUVs to take it out camping in the wilderness, even if they never actually do either of those things.</p>
<p>Car buyers don’t buy sensibility; they buy aspiration. And a 75 mile range for a daily commute isn’t very aspirational (certainly not when alternative BEVs feature 200+ miles of range).</p>
<p>While the survey shows “Broadening Appeal of Electric Cars” and many Car makers are or will be coming out with EV (and banking on their sales), Imo, EV’s will not be the primary or majority of Vehicle in the future. It might be Hydrogen or something else but EV vehicles will only be about 25% (max) of total vehicles sold/on the road.</p>
<p>I believe this for a number of reasons.</p>
<ol>
<li><p>If you don’t own a home and live in a Condo or Apartment complex which doesn’t have charging stations, can’t charge you vehicle at home. It’s worse if you have to park on the street. This is especially true in large metro areas or cities.</p></li>
<li><p>Even with fast charging, it still takes too long to charge the vehicle when on a road trip or away from home. Filling up with Hydrogen is much faster.</p></li>
<li><p>Cost of electricity will increase in the future (in some cases significantly), especially when there are more EV’s. Read an article recently in which an analyst/expert noted that in No. Calif, if the Utility company (who just filed for bankruptcy) has to comply with Judge’s order to improve utility line maintenance and other items, it was expected monthly electrical bills will go up as much as 50% per month. This will impact EV owners significantly.</p></li>
<li><p>Much easier to convert petrol/gas stations to hydrogen filling stations than installing EV charging stations. From gas to hydrogen, just replace the underground tanks.</p></li>
<li><p>During an emergency (wildfires, hurricanes, tornadoes, etc) where people have to evacuate, if their vehicles aren’t fully charged or mass evac traffic jams, people with EV’s may get stuck due to no charging stations or EV runs out of charge.</p></li>
</ol>