The Government’s aims for zero carbon motoring will need to do more to convince a general public which is happy to be greener if it doesn’t cost them more money or time, notes AM’s regular columnist Professor Jim Saker, president of the Institute of the Motor Industry.
Almost 20 years ago, before Governments and politicians got involved with focussing on the car industry and the environment, we undertook some research at Loughborough University with a local franchised dealer over the concept of the ‘green dealership.’ We asked their customer base whether they wanted the dealership to be greener and more environmentally friendly.
The result was a resounding yes, this was something that they wanted and even came up with some suggestions on how it could be done.
We then asked whether they would be prepared to pay more if the dealership went ahead and systematically made its operations more environmentally friendly. The answer was an almost unanimous ‘no.’
Basically at that time being green was seen as a nice to have, provided it didn’t cost the individual more. This was the underpinning logic behind ‘being green’ in the customers eyes.
I was looking through the old research papers and thought about what had happened since that time. We have been through the ‘Dieselgate’ scandal, the rise of the environmental movement and global campaigners such as Greta Thunberg. We have had COP conferences and Governments setting targets for Net Zero.
More recently in the UK this has been manifested by the specific setting of targets for EV sales that have distorted both the market and the supply chain.
There is a general concern about climate change and there is clear evidence that extreme weather incidents are taking place.
The problem is that although the awareness of the environment has increased since we did the original research the attitude towards whether people want to pay for it appears to remain the same.
The EV market in the UK is doing better than in Europe which seems to be on a major decline. Latest reports indicate that the German market for EVs has dropped by 70% since the Government stopped subsidising sales.
Across Europe EV sales are down with the only powertrain on the up is conventional hybrid electric with a rise of 6.6% – a trend that is mirrored in the UK.
It is interesting to reflect that over the 20 years from our first study people continue to behave in a reasonably logical way. They are happy to be green if it doesn’t cost them more in cash or time.
With no financial incentive to buy EVs and a lack of charging infrastructure, coupled with the cost of the vehicle and its unpredictable future value, buying a self-charging hybrid is a logical option.
Unless governments intervene to change that logic, people will continue to behave rationally.
OEMs will be forced to alter their EV aspirations until the general public sees that this type of powertrain makes economic sense for them and their families.
Author: Professor Jim Saker, emeritus professor of Loughborough University Business School.