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| Make it easy for customers. |
New research today from JD Power repeats the message that for most consumers, cost (and by cost they mean purchase price) matters more than the environment. Nothing new there then.
According to JD Power, there will be 159 plug-in models to choose from in the US market by 2016. That's a lot of choice, but it won't matter how much choice there is if consumers are still unconvinced.
Two conclusions:
1. Governments and manufacturers need to present a compelling case for electric cars to the public. The case for EVs must be built around a sense of urgency in order a) to secure energy and therefore economic security and b) to mitigate climate change. This needs to be we-will-fly-to-the-moon inspirational leadership, the type that can keep leaders in power for years, whilst supercharging the EV, renewable energy and smart grid industries and re-employing western economies.
2. New Pay and Use leasing models and companies are urgently required that overcome the higher purchase price of EVs. Pay a deposit and then pay per mile, sign up for long enough and pay no deposit, that kind of thing. Take away the concern over battery ownership and enable easy upgrade to the latest, models. 50 years ago in the UK there were hugely successful companies (like Rediffusion) that did this when televisions first came to market and each year offered significant performance improvements. Build in rewards for early adopters and benefits for loyal customers. Shai Agassi at Better Place may yet have the last laugh in spite of rather than because of the auto industry. Keep an eye on Israel and watch the rivers of cash start to roll his way.
This stuff isn't rocket science and I understand that manufacturers are wary about taking the risk on batteries. But therein lies a billion dollar opportunity.
