Ignite Excitement: Insights to drive toward electrification

The auto industry is currently in the middle of one of the most significant disruptions in history: electrification. Rising fuel prices, increased focus on carbon emissions reduction, and even changes in driving habits due to the pandemic are propelling the industry away from traditional internal-combustion engine vehicles and toward zero-emissions electric vehicles.

Auto manufacturers have their foot on the figurative gas when it comes to bringing new EV models to market: in 2021, there were over 125 new hybrid and electric vehicle models, versus only about 50 internal combustion engine (ICE) models. Electric vehicles are being touted as “the future”, while traditional internal-combustion engine vehicles appear to be relegated to the PR scrap heap.

Considering all this, how do auto manufactures compete in the promising, but ultimately unclear world of EVs? What do consumers like about EVs? What are their concerns? Where is EV consideration growing? Do EV intenders follow-through when it comes time to make a purchase? What obstacles still need to be addressed? What do consumers know about, and more importantly, expect from charging options? Are EV buyers aware of special programs from utility companies, and do they use them? What can be learned from other markets like China and Germany?

Listen in as we reveal the interest for EVs, their advantages and drawbacks plus highlight trended insights on how these have changed over the last several years for the U.S. versus other key global regions. We also look at the priority of features for an EV, range and charging time requirements, and price expectations across key segments leveraging fresh insights from our 2022 Mobility Navigator syndicated offering from 5 countries fielded in late April.

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Today’s AI-generated audio transcript is offered below. Apologies in advance for inconsistencies that have been included.

0:04

Thank you for joining us for today's ... webinar, Exploring Consumer Interest in Electric Vehicles and Features That May Increase Adoption.

0:14

Today's webinar is being presented by our automotive sector research experts and you can read more about them on the slide in front of you.

0:23

Throughout today's session you will remain in listen only mode.

0:27

However, throughout the webinar you may submit questions online using the Q&A feature committee will answer questions at the end of today's session.

0:38

However, if time runs short then your question will be answered by e-mail.

0:43

I also want to encourage you to check out the handouts we've uploaded into the webinar control panel.

0:51

So now without further ado it is my pleasure to welcome first speaker, Mike Vannieuwkuyk, Senior Vice President and Senior Client Officer with Ipsos. Thank. You have the floor.

1:06

Thanks, Elen. Hi everybody. First, let me thank you for joining us today.

1:10

We're excited to share again with you some of the insights we have from our latest information on electrification and EV interest from our navigator study. For those of you who have been with us before, you know, this is a series of webinars that we've posted each year, and will continue to do so this year, as well as some additional topics throughout the course of the year, for those that are new.

1:36

I hope you find this interesting, exciting, informative, and we look forward to engaging with you.

1:41

Chance, you can go to the next slide.

1:45

So, before we really dive into things, I just wanted to table set up a bit for you. and the obvious one here Is that the EV market really shaping up to be very favorable.

1:56

Not to be surprising to anybody here on the call, but certainly when you consider all of the, these are now in the market are entering, not just the number of them, but the breadth of them, the types of models that are coming into, Martin, Along with just an unbelievable amount of promotion that's happening.

2:14

You can hardly turn on television, I guess without coming across some advertisement, some commercial on electric vehicles or electrification.

2:25

The network, the charging points that are available publicly have been growing very quickly, and we're going to talk a little bit about all of those things in a moment. We also have the condition of just gas prices are getting really high across across this country, and in other markets, as well.

2:44

So that really starts to set a foundation, but what we're going to do today, aside from really diving in a little bit into these topics, we're gonna get into detail what consumers are thinking about electric vehicles and and how they're viewing it as a potential choice putting forward Chancellor ink on the next slide.

3:05

The way we're going to dive into this is through the Ipsos Navigator Mobility Navigator Study and this is something that we've been doing for several years now and while there's a lot of research out there on electric vehicles that's available. What makes this particular study unique is really three things.

3:24

one, is that this trend table data, we've been doing this study for five plus years, and throughout that time, while we do make some modifications to the survey here and there.

3:36

We keep threads a very important metrics around each of the topics we're covering.

3:41

The other advantage is this is a global study. So, this is pretty good that we're covering five of the most.

3:56

Pardon, automotive markets? And how each of these topics, whether it's electrification, which is modules, autonomous, and semi autonomous features, or shared mobility, this is really a dive looking at some of these markets, which are ahead of where they are in the US.

4:10

Some that are behind, and how are consumers reacting?

4:14

The third advantage is that this is really three studies and one.

4:17

So it's not just electrification, it's not just autonomy, which we'll share later and mobility, all things, all of these major movements within the auto industry sort of coming together.

4:28

Chance, can you go to the next slide please?

4:33

What I also want to emphasize is that this isn't really just about what consumers are certainly dives well into that.

4:39

And we get a lot of interesting insights over the years that are progressing, changing, but there's a lot of insight and implications that are useful to many other industries that support electrification. So, yes, it helps the manufacturers in their planning strategy.

4:55

But it's also addressing all of these other aspects, whether it's utilities, oil and gas companies, what's happening with gas stations, infrastructure, the environment, so on and so forth.

5:06

And it's indicative, if you look at the people who are attending all of you, are coming from all of these different industries. So, we're excited that it has that sort of wide breadth to be able to share forward.

5:18

So, at this point, I'm gonna turn the conversation over to John Keizer, to talk a little bit about the current situation.

5:26

Great. Thanks, Bank, And certainly appreciate the opportunity to share, again, about these insights. I'm quite excited to see what is transpiring in the market in just to build a little bit further context about what is the current US market? What are we experiencing? We'll go into a few different things, one chair, go to the next slide, Chance. And, what are we really seeing here? And, ultimately, right now, beds.

5:53

Are growing tremendously on what's available there, right now, where you're seeing 42 bez across the most popular categories.

6:02

And this is just remarkable amount of volume of bed as alternatives, and, ultimately, I will say, is that we have seen the introduction of these new beds in the last two years, many more than we have seen in what amounts to, in the last 10 years combined. And then what we are seeing in the next couple of years, it's going to more than double that. So we're going to have close to 100 battery electric vehicles on the market in the coming years, across the most popular categories that consumers are seeing. So ultimately, there, there's not gonna be any shortage of options. Has relates the mainstream or premium?

6:41

And even we're seeing that there's also a fair amount of PDFs out there with 39 P has across all of these segments, is also available for consumers. So electrification choice and variety is, is wide and vast for consumers to choose amongst.

6:59

As I've gone to the next slide, chance is, ultimately, we're also seeing a significant increase in the ads. Coming from the auto manufacturers, and most new vehicle launches are bev's across.

7:13

Again, both mainstream and premium brands and segments were saying and then specifically, we're also seeing truck ads. And as we know here in the US. Market pickups and trucks are amongst the largest. And we're seeing with the coming in with the Ford and Chevy and GM, with their trucks coming out ultimately is going to be kinda hitting middle America with a solution that they're looking for. And so I'm quite excited to see what transpires as those vehicles come out on on on.

7:42

I know, you know, public streets, but ultimately what does this really do? This increases the overall familiarity for consumers when they see him on the streets, they become more comfortable with it and more apt to explore and investigate it. So it just overall, helps with that broad acceptance and for, for consumers, And gone the next slide.

8:02

Then further, and is something that Mike Ref branches this key dynamic right now that we're all experience is just skyrocketing gas prices. That just causes enforces consumers to investigate further, because it is quite expensive right to fill up your Neon your tank. And I know I experienced, and I'm out in California, and we're we're experiencing north of the $5 average I'm near $6 a gallon in my market. And ultimately, that's just very painful. And so, just, certainly count yourself lucky if you're not out here, but it is. It just an increased need to cause people to go and explore and investigate some alternatives, such as battery, electric, or P, has, or what have you.

8:42

So definitely increasing the, I guess, openness to explore, so go on at next line.

8:49

The other element that we are seeing is that EV infrastructure is going to be critical for consumers, because most people think that and they're so used to seeing gas stations. It's visible that public charging stations are, you know, have a decent present, Start growing this, about almost 50,000 public charging stations with over 100 on charging ports for them to charge. But it's so there is also a significant and commitment to increase this even further and by the Biden Administration.

9:21

But for the most part, on what's happening while the public charging is needed, energy required for visibility and familiarity for consumers. But one thing that the that Bev and tender doesn't necessarily realize is that they're going to do most of their charging at home anyways, but when they're out in the public, they want to be able to see if they want to be comfortable with it. And this increase, focus, and building it out would certainly be helpful for consumers. And that commitment is there, and it will transpire, so certainly looking forward to that as demand increases to align with what it's the needs for consumers, they're gone the next page.

10:00

Ultimately, what does this do? We're talking about public charging.

10:04

And there's access is, really, Is the grid. The grid, even handle this influx of that.

10:10

And so, ultimately, if we, we've looked at the data, and we've seen some published reports about this, and, you know, the context that the grid is, it's fairly large of 4000 billion kilowatt hours out there, and it grows about seven billion kilowatt hours per year. What does that really mean? Ultimately, about, it's growing, the grid has grown about 1% per year, or less than 1% per year. Just put that in context, but thinking about the average miles that a consumer drives and then the overall fleet that's out there in the US population, Roughly If all of that fleet converted to 80% being battery electric, we would see about a need about 20% of the current grid capacity it. So, it is possible.

10:59

But we recognize it's going to take some time to get the 80% penetration. Right now, just about 5% of sales per year are bev's in the US, and that growth rate is expected to increase, but it's still gonna take some time. It's going to take a fair amount of time to get to an 80% penetration. So while technically, the myth is false, but it's a huge if that the grid can handle that, what amounts, this influx of bad. So it would have to work.

11:30

You know, I guess you could say in unison, with it as the demand increases, and to continue to increase the grade to handle that capacity, so it's, it just has to have careful planning within the overall industry in order to address this appropriately.

11:44

So with that, if we go on to the next slide, just as we go into the results of this year's navigator, ultimately, it's just orient. You were talking amongst new vehicle buyers, and as Mike alluded to, this is a global study. We've been doing it for over five years now, so we have key trend ability insights that we're going to leverage. But we're looking at, is a broad mix of consumers, with the representative, age and gender per country. And then we are starting to see, our bed ownership level, starting to grow its inching up right now, it's 4%. So, most of this is going to be amongst non Bev owners, But and, you know, we're going to get insights into what is happening in that context. So with that, I would hand it over to chance to give us some deeper insights into what we have seen for this year's Navigator.

12:37

Thanks. John. Thanks. Everybody. Glad. You could be with us today.

12:41

We're excited to share what we think are some pretty cool findings this year.

12:46

As John and Mike both mentioned, the Navigator study is pretty comprehensive. It's a questionnaire that covers a wide range of topics related to do electric vehicles, really in all their forums hybrids, plugin hybrids, and pure battery electrics.

13:00

John mentioned that it covers five countries.

13:03

So, look, there's a lot of data in there, and I'm simply not a fast enough talker to cover it all today.

13:09

So we've pulled out some of what we think are the most interesting findings for you to take away.

13:14

We'll focus on, or, I will focus on three main topics.

13:17

We'll start with data around familiarity and interests in electric vehicles and will primarily focus on Battery Electric's in the US.

13:26

We'll show some global data, but the bulk of what we will be looking at today is the US market focused on battery electrics or beds. The second major topic I'll cover is consideration and rejection of electric vehicles, again focusing on the battery electrics.

13:43

And then we'll finish up with some data on charging habits and expectations, and then hopefully we'll have made you smarter than when we started.

13:54

So, talking about those five countries, when we look at some basic data around familiarity with electric vehicles, we find a good mix of results. Look, some things are consistent across markets, but other things vary quite a bit.

14:09

This first chart unfamiliarity with battery electrics is a perfect example.

14:15

As has been the case over the last several years that we have been tracking, more and more people are becoming familiar with them, sort of, regardless of where in the world they are.

14:23

However, this level of familiarity differs quite a bit.

14:27

Chinese buyers remain the most familiar with battery electric vehicles.

14:32

Basically, nine out of ten, claim that they know something about Battery Electric's and six out of ten claim to know a fair amount.

14:40

The U S and Germany are our next. while Japan frankly, remains a bit of an enigma. Only about one out of two.

14:48

Our respondents in Japan have much knowledge about Battery Electric's at all.

14:53

The story is a bit different in Japan if you ask them about hybrids and plugin hybrids, But when it comes to battery electric vehicles, Japan Buyers' just aren't in the know yet, compared to these other markets that we're measuring.

15:06

If we drill down a little bit further into the results for the US, we see a couple of things.

15:12

First, it's growing, but there's a bit less growth in overall familiarity this year. But what we do see is that the depth of knowledge is increasing.

15:22

More people in the US this year claim to know a fair amount, then they did in the past. However, it still in that chain, remember, in China, six out of ten people claim to know a fair amount.

15:33

Where in the US, we've only grown to about third.

15:38

So, let us now shift our focus from familiarity to interest and Consideration.

15:44

What do we see when consumers are asked how likely they are to consider a battery electric vehicle with their next purchase.

15:53

Was the case with familiarity, we see growth across the board.

15:57

Intentions are higher, basically in every market, but, again, as lift familiarity, there are considerable differences in the levels of interest by market.

16:06

China, as with familiarity, has the highest levels of interest or intent to purchase, but that relationship doesn't always hold like Germany.

16:16

Germany had the second highest level of familiarity on the previous chart that we looked at, but intended consideration in Germany is relatively low.

16:26

one of the lowest, for the US, interest has really jumped up this year. We're up to almost 50% of people saying they intend to consider a babb next time, they buy a vehicle. That's up from only 30%, just two years ago.

16:44

In fact, if you look back a little bit further, over the last five years in the US, interest really has skyrocketed and it's up almost four times what it was in 2018, So, look, we've got this growing interest. We've got all these models coming out that John talked about earlier, we've got promotions.

17:03

We've got skyrocketing gas prices, so we should just sit back and we'll be at 49% share of battery electric vehicles in no time, Right?

17:12

Maybe, maybe not.

17:14

While our data has shown a consistent and strong increase in interest over the past five years, the data that I'm going to take you through today also provides frankly some reasons to temper the excitement a little bit.

17:28

So let me start with this.

17:30

In addition to asking people about what they intend to do the next time they purchase a new vehicle, We added a question this year about what they actually did the last time they bought a new vehicle.

17:41

And this page shows a comparison of the results from those two questions.

17:46

The chart on the left is the same data that we just looked at. What percent of people intend to consider a battery electric vehicle when they next purchase a new vehicle?

17:57

13% in 20 18, all the way up to almost 50 this year.

18:02

The chart on the right shows the results of this new question.

18:06

How many people actually considered a battery electric vehicle on their last new vehicle purchase?

18:12

And we've broken that down by how long ago that purchase was.

18:16

So as an example, among those people who last purchased their new vehicle 4 to 5 years ago, only 18% considered a battery electric vehicle.

18:26

And among those that purchased more recently, about 40% did the same.

18:31

Now, as you can see, the actual consideration rates, while higher for more recent purchases have kind of leveled off the last couple of years, around 40%.

18:45

As this is often the case, sometimes there's a disconnect between what people say they are going to do and what they actually do when they get into the, you know, the the crucible of the buying experience.

18:58

And now this is compounded by the fact that the conversion rate among our consumers that said they considered about the last time they purchase a new vehicle is pretty low.

19:09

Only about 14% of those respondents who said they considered above last time ended up buying one.

19:17

Another potential speed bump on the road to an electrified future has to do with who is interested.

19:25

We took a deeper look at those that say they intend to consider a battery electric vehicle next time, and found something both interesting and maybe a bit sobering related to age.

19:36

This page shows the trends in intent to consider by generation.

19:41

Put very simply, the younger buyers are more interested than the older buyers.

19:46

That's probably not a shock. If I had asked you that question, you would probably have intuitively said yeah.

19:52

the younger buyers are going to be a bit more tech forward. There might be a bit more environmentally conscious, they'll probably be a bit more interested.

19:59

Well, that's the case, but look at the magnitude of the difference, and also look at the trend. Especially for boomers.

20:07

So, not only is interest much lower among boomer's, it's not growing as fast as it is certainly for the Gen Y, Gen Z generation, or even Generation X.

20:21

This isn't something to dismiss slightly.

20:24

What we have here is a situation in which the biggest chunk of new vehicle buyers in the US and the generation that tends to have tremendous buying power, remains largely unconvinced about battery electric vehicles.

20:38

Based on the 2020 year sales, boomer's accounted for a little over 40% of all new light vehicles sold in the US.

20:48

Now, in our data, only a minuscule 7% of boomers seriously considered a battery electric vehicle.

20:56

That's a big disconnect. And, we're going to talk about that a bit more as we go forward.

21:03

But, part of these disconnects, if you will, might explain why bad, bad, bad, sorry for all their growth in sales numbers.

21:12

All the focus and hype in the media that John mentioned, they're still a very small part of the market.

21:17

But what you have in front of you, here is a slide that shows a couple of things.

21:21

The green bars represent battery electric, vehicle sales by year.

21:28

The white numbers inside those bars represent the growth year over year, and then the blue numbers at the top represent battery electric vehicle share of total light vehicle sales.

21:41

Look, it's growing like crazy, right?

21:43

We know that it was up 31% by volume in 20 20.

21:48

Another 50 plus percent last year, Based on Q one, this year versus Q one last year, it's up, and I'm another 73%.

21:59

But, for all that volume and all that growth, they still represent, as John mentioned, only about 5% of vehicle sales.

22:09

And I guess, maybe at these volumes, maybe we can, we can take advantage of the younger buyers. But that means 95% of people who buy a new vehicle aren't buying a battery electric vehicle.

22:23

Again, maybe the industry doesn't need to worry about older buyers like boomers at this level of volume.

22:27

But as the volumes grow, OEM's will have to look beyond the young, early adopters to fuel growth.

22:35

And here's a final thought that's not on that chart regarding the growth in battery electric vehicles so far.

22:41

Tesla still remains the £800 gorilla in the room when it comes to battery electric vehicle sales and still accounts for about 70% of all those battery electric vehicle sales.

22:52

This, despite more and more, high profile launches of bad vehicles from the major OEMs.

22:57

So far, the gap between Tesla and everyone else really isn't closing much.

23:03

So despite all this momentum, despite all the factors that Mike mentioned earlier in favor of EVs, really increasing, there's still a lot of work to be done, especially for those brands, not named Tesla.

23:18

OK, so there's more work to be done, let's move beyond consider familiarity and interests, and let's talk about consideration and rejection.

23:28

What are the concerns and obstacles that stand in the way of consumers, when it comes to considering and ultimately buying a battery electric vehicle?

23:38

OK, let's start at a 30,000 foot level.

23:40

We ask a question of all of our respondents, regardless of what vehicle they own.

23:46

What concerns you most about owning a battery electric vehicle?

23:51

What the chart in front of you contains are the top five mentions arrayed by those generational groups.

23:58

Again, you can see the rank for each generation. So, battery life was the number one concern for all three generations. You also see the percentage of consumers that mentioned that as a concern.

24:10

So there are several takeaways from this chart.

24:13

one is that many concerns are consistent across ages, battery life, recharging, time, driving range, battery replacement costs, concerns about charging stations.

24:25

When you just talk to people in mass, those are things that they are worried about when they consider owning a battery electric vehicle.

24:32

But you can also see that the level levels of consideration vary dramatically.

24:37

Look at how much bigger the percentage numbers are for boomers, versus the Gen Y, Gen Z, Gen X, following, falling in the middle.

24:46

And you'll also see that there are some unique concerns. For specific iterations, I've highlighted one here.

24:52

Safety is the fifth most common concern given by Gen Y and Gen Z consumers.

24:58

It's barely on the map for Gen X and boomers.

25:04

So, let's drill down a little bit further.

25:07

So, let's now focus on those people who, want to ask whether they're going to consider about next time, say, no, they're not likely, or they are unlikely to consider a battery electric vehicle, why, What's concerning them?

25:22

Again, the charts are arrayed by generation, with the most common reasons given rank.

25:31

You have the rank number and the percentage number, You know, remember those five common concerns from the previous page. three of them are still common. You know?

25:39

When we ask people, OK, you're not willing to consider why not.

25:43

It's still the three big ones we've known about for a long time driving range, recharging time, and battery life.

25:50

But again, you start to see some things that are unique among the generational groups.

25:56

Older consumers, boomers, and Gen x-ers to a degree are more concerned about the charging station infrastructure.

26:03

That is, the third and fourth, most common, given reasons for not considering of a bad among Gen X and boomers.

26:11

It's only seventh for Gen Y, Gen Z, conversely, Gen Y, Gen Z is a little bit more concerned about high cost of ownership and maybe the other the other older consumers are.

26:24

And finally, let's now focus not on general, concerned or on what's keeping buyers from considering battery Electric's.

26:31

Instead, let's look at the reasons that buyers give for rejecting a battery electric vehicle.

26:38

These are taken from consumers who said they did, instead of a battery electric vehicle on their last vehicle purchase.

26:46

Well, we asked, and but chose not to buy one. And so we asked them why.

26:51

So again, you see some common themes, battery life, recharging, time, range, and affordability.

26:57

But it's what we don't find in the top five or so concerned that I think might be most interesting.

27:05

Look, we live in an age of supply chain problems, tipp shortages, lack of inventory.

27:13

The simple truth is, those things are not driving rejection.

27:17

I have loaded those onto the bottom of the chart for you, even though, as you can see, they're ranked much lower, not being able to find a vehicle of the type I wanted, as above, 10th, most common for Gen Y, Gen Z, 11 for Gen X, and 12th for boomers, not nearly the, the reasons for rejection, that some of those other core issues are.

27:41

Similarly, lack of available.

27:43

Dealer inventory is not driving rejection among, these consumers will annoy.

27:47

you ask them why they ultimately chose not to buy a battery electric vehicles.

27:53

So, you know, there's a lot of talk about inventory shortages and supply chain problems, limiting sales, which they certainly are for the market writ large. Are they really limiting sales for battery life? I don't know, maybe, but maybe not.

28:11

We also asked buyers' not just about sort of topically what they're expectations and concerns and interests are, but we also ask them, hey, what brands do you associate with battery electric vehicles?

28:24

Know, what ones are you most likely to consider next time?

28:30

So let's start at the brand level.

28:33

When we ask people who are, say they say they are willing to consider a battery electric vehicle next time, these are the responses that we get, and it's an interesting mix of brands.

28:47

Some brands associated with electric vehicles, some, perhaps more associated with technology, and, frankly, a brand not associated with vehicles at all.

28:58

Look, we see Tesla at the top. That's no surprise.

29:01

We see Toyoda second, though, which is interesting, because Toyota, historically, has not really played in the B EV market much.

29:09

Yes, they have lead with hybrids and plug in hybrids, and they may be, you know, getting some, some halo effect for that because people are willing to consider them when we talk about battery electric vehicles.

29:23

Another interesting thing that you see on the chart, it's apple, right, Apple, as a vehicle manufacturer that's just pure vaporware at this point.

29:33

But people are willing to consider it, at least at some level.

29:39

It's also interesting, I think, some of the brands that you don't see on the chart, you don't see volkswagon in the top 10.

29:46

despite having offered, you know, the E golf for a number of years, And obviously recently launching the ID for, you know, a fairly mainstream no compact mid-size SUV, battery electric vehicle.

29:59

I think one of the things that discharge, sort of cements in my mind, at least, is, you know, sometimes the consumers still have a lot more to learn than we think they do.

30:11

You know, a lot of their perceptions around the auto industry, art are based on years and years of experience and perceptions, and some of those things take awhile to change.

30:23

We also put in front of the consumers, very specific models that are coming to the market soon, and we asked them about how likely they are to consider those going forward for their next purchase.

30:36

Those this will start with the data based on people that are looking to consider a battery electric SUV with their next vehicle purchase.

30:46

So interestingly you see three mainstream brands at the top, the Ford Explorer, the Equinox and the Blazer, not only established brands, but also model names that have previously existed.

30:59

The key benign is completely different, that is a model name that has never existed and will launch into the market as a pure battery electric vehicle.

31:10

If we move on to pickups, John mentioned earlier how interesting it will be to watch what happens in the electrified pickup market.

31:20

I find this interesting because for the first time in a long time, this is a pic, electric pickup chart that doesn't have the Tesla cyber truck dominating the conversation.

31:31

So we see, again, a good amount of interest for the, the, the traditional truck brandes, bringing a battery electric pickup to the marketplace.

31:43

And finally, we asked about coupes and sedans.

31:47

I know they're not as popular right now, Nobody wants to talk about groups and sedans in a truck and SUV world but they're still out there.

31:55

And when we ask about those, that are most likely to be considered, you know, it's kind of dominated by some, by some, higher in tech brands to BMW I seven.

32:05

The Tesla Roadster and the Abby six E Tron.

32:10

OK, let's move away now from reasons that are either helping or hurting in consideration in an adoption of electric vehicles.

32:19

Let's talk about some of the things we learned about charging habits among battery electric owners, as well as the expectations among those who don't own a battery electric vehicle about charging. Again, this is the group that the industry needs to figure out how to convince to get in the pool.

32:37

So let us see what we can learn from them.

32:43

We asked our Bev owners that responded to the study about their opinion on a range of a wide range of charging related topics.

32:52

On this page, you're looking at a rank chart. It is ranked by the percent that agree completely.

32:57

I agree completely with the statements about various kinds of charging options that they have.

33:05

If those auctions are enough for them and who should take the lead in expanding charging charging station infrastructure?

33:12

Remember, one of the things that we saw in the previous section is that, having enough charging stations, having a robust infrastructure is a concern.

33:22

So, a couple of things to take away from it.

33:24

As you can see, there's a strong agreement that government entities should be taking the lead, whether it's national governments at the top, or state and local governments, as the second statement that you see there.

33:37

However, there is also strong agreement to traditional gas stations and inconvenient storage should also get in the game of pride in providing EV chargers.

33:46

John mentioned this earlier. Right?

33:48

If you're, when you're out about in your life, you see these things all over the place, right there.

33:54

There are lots of corners sometimes there on all four Corners, a convenience store or a gas station.

34:00

So if you have any kind of concern about, hey, where am I going to charge my vehicle?

34:04

When I'm not at home, it's natural for these people to say, well, you know, why can't these gas stations just offer a quarter to?

34:13

that way?

34:13

I don't have to be as worried about finding myself somewhere where I can't find a public charging station, because I can almost always find a gas station or a convenience store.

34:25

And you can also see down at the bottom of the chart that this is an issue that owners would like to see more charging stations in general, as only 29% completely agree that the combination of at home and public charging meets their needs. Again, this is among actual B EV owners. This isn't just a general thought. It. Yeah, there should be more.

34:46

This is an actual experience based Haigh, I have a battery electric vehicle. I charge it at home, but I need more, right? What's out there right now is just not enough to make me comfortable.

34:58

We also asked our owners about different conditions and behaviors that relate to them and their charging habits. And we've highlighted, again, a few important takeaways for you today.

35:09

The first two bars are interesting scheduling at home charging to take advantage of lower rates, and taking advantage of special utility programs.

35:19

Those are both, you know, the, the, the things that people that applied to them, at the highest level.

35:26

So there is some progress being made there.

35:28

But if you look at the actual percentage numbers, you can see that there is still a sizeable opportunity to get battery electric owners to do these things to take advantage of scheduling.

35:40

They're charged when either electricity rates are lower.

35:43

Perhaps demand is lower to make sure that they're aware of and are taking advantage of special programs that their utility probe, their utility provider offers.

35:52

Again, there's a real opportunity to, to increase education and adoption here, which feeds right into John's earlier comment about the big F of managing the grid. Yeah, on paper, the grid can support the kind of growth the industry is targeting.

36:08

If it's managed properly, here's an opportunity to make sure that big gift doesn't become a stumbling block.

36:18

We were also able to compare how expectations for bad owners and non owners differ.

36:24

So this chart is based on two questions.

36:28

For Bev owners, we asked them how often do you charge at these various locations? That is the sort of lighter, green or teal bar.

36:37

For non bev owners, we asked them, Hey, what would you expect to do? You know, if you actually own depend, where would you expect to charge your vehicle and how often?

36:47

You can see that there's consistent Agreement and understanding that I have the opportunity to charge at home, and I will do that a lot.

36:56

Where we see a bit of a disconnect, though, is for charging in non home locations.

37:02

The bab owners in our study very commonly chart their vehicle at other locations, public charging stations, charging stations, network, charging stations at retail centers, things like that.

37:13

Non owners don't expect to have to do that.

37:16

They don't see as much need for that.

37:19

They don't see the need that the Bev owners are actually experiencing.

37:23

And again, anytime you see a gap like this, that's a that's a good indication that there's both a need and an opportunity for education.

37:33

On a sort of related topic, we also ask about expectations around acceptable charge times. So this is data based on answers to the question.

37:43

How long do you think it should take to charge your battery electric vehicle from a very low charge to 80% using a DC. fast target?

37:53

So we can see that charge times, expectations might be increasing just a bit.

38:01

No, it's 27 minutes in 20 20, It was a bit higher at 29 minutes last year and it's down to 25 minutes this year.

38:09

What's interesting is that we were also able to break this down again by owners and non owners.

38:17

And this is again an indication where those non owners expectations are maybe a little bit more demanding than what is reality right now.

38:28

And, you know, Bev manufacturers have gotta take that into account And make sure that they are educating properly and, frankly, working on charge times as much as well.

38:40

And well, not exactly a charging topic, per se.

38:45

We've also been tracking minimum range of expectations with this study.

38:50

You saw earlier, and it has been the case every year, that range is a consistent concern.

38:58

When we asked people, whether they're willing to consider and why not, or what they're worried about range is always up there somewhere.

39:05

So we see that no maybe expectations around range are moderating slightly.

39:12

They've always sort of hovered around 300 miles or so.

39:16

But after three years of increasing the act, the minimum acceptable arraigned on average, actually drop this year a bit too just under 300 miles.

39:26

But to come full circle from where we started and talking about those different generations, we then cut this data by those generations.

39:35

And here's where you see another place where there is just a huge difference in the way consumers look at the world, depending on what generation they are in.

39:46

No, for the youngest consumers.

39:48

Their minimum acceptable range requirement is moderating significantly.

39:53

I didn't mean last year, there, their average minimal minimum acceptable range was 274. It's down almost 50 miles to 227.

40:03

If you look at Generation X, it's down a little bit.

40:06

Not as much, completely the opposite.

40:09

If you look at boomers, not only do they really have severe demands on what kind of range they would like to see, it got worse this year. You know, they would like to see over 350 miles of range this year.

40:24

Um, you know, that's a lot, and, again, that's an opportunity where those people need to be convinced, need to be helped through their concerns, about topics like this one.

40:37

That is A Quick run through some of the highlights that we have from this year's data.

40:44

Again, we can't, we couldn't didn't have time to share it all with you, but I hope what you see so far, you find valuable.

40:50

And with that, I am going to turn it back to John, so that he can wrap us up and set us up for the future.

40:58

Good. Thanks Chant. And, if you go onto the next slide, ultimately, we are here, and some key themes. And what we see, just out the gate, Regardless of age group, you know, we would see as range. You know, pricing and charging are our key. And it's a matter of focusing on this as it relates to education. And what you need to emphasize is different, depending upon your age cohort, specifically, because it is key as relates to what Chance just alluded to around, range expectations for boomers, They have a higher expectation, or a desire. And that's an element of knowledge, because it goes into, sure, increase range cost more. So, it's a matter of, maybe they're willing to pay for it, but maybe not. So, ultimately, it's about education, for sure. And depending upon your age cohorts, so with that, you go on the next slide, chance, and we can run through, is a key highlights of what we went through and ultimately, what do we see? where, you know, it, it seems obvious.

41:55

But, yes, interest is skyrocketing. It is strong and it's grown tremendously over the last few years. But let us say we would temper that enthusiasm. Because it's coming from a younger generation. And perhaps they don't have the means to, to be purchasing it, but ultimately, it is, it's good to be aware of it. So really, we do see with the boomers, you know, they continue to be skeptical. They're not growing as much, but they are growing, but it's a matter of educating them. It's ultimately telling them about what is needed as you would be targeting them. And we just scratched the surface about what their needs are, what their possible of cause for this brief insights that we have. But ultimately, as we get into more of the results and the full results, you can dive in and dig into that data as a as a subscriber to the navigator.

42:44

So, we would say, you know, understanding the customer is even more important. It isn't necessarily about, you know, what amounts to is, we have a variety of products, but all understanding the unique needs, the unique differences, so that you can communicate and activate against them. Especially when you're going to have, you know, ultimately, almost 100 beds on the market. You're going to have to compete. You're gonna have to have a point of difference. It isn't just about having an EV from your brand. It is a matter of meeting the needs of the customer, so truly dig in on those, That would be important.

43:16

But another thing that we found is this idea of these broader subjects that we just need to educate on. And it's, you know, sure incentives is, is advantageous. This idea of charging speeds and getting access is, is key, but it's a matter of understanding what other key trigger points per call age cohort will be critical. But then we've touched on the grid, the grid, and this is where the industry needs to be collaborative. So, I'm working with the utilities, versus the manufacturers, as relates to even government support, as it relates to. You know, charging infrastructure build out as it relates to the utilities going lockstep with then it's going to vary from state to state, but it's a matter of that co-operation so that we can, collectively, as an industry, manage it effectively because that's going to be critical for success.

44:04

Then, lastly, you know, as more and more beds are coming out, you know, yes, interest is up, but, you know, rejection isn't no due to lack of models or inventory, right? I mean, remember that despite these high profile launches, you how Tesla does still command a large share. So, we're bringing people into the market, You know, that, are, you know, the non tesla buyers. But, it's a matter of, making sure to, be able to compete to know your target, know your customer. And, certainly, that's where we can help with more insight, related to our navigator overall.

44:44

Provide that insight for you. So, it's a matter of, you know, connect with us and help. And this is where we do have a unique opportunity with this product. We have been doing this for over five years. We have key trending information across five key markets. We cover a breadth of topics beyond, well, beyond what we've covered today. So, certainly, reach out to us, and we can help you understand what that looks like. And then, certainly, what's upcoming for the rest of this year of us, coverage, as relates, next is autonomous and advanced features, and then we'll wrap up the year with shared mobility and understanding what the impact is on what's happening in the industry. So, certainly let us know. I'm happy to help them provide more information as once your subscriber.

45:29

So, with that, I hand it over to Mike and see if we have any questions that have arisen that have come through, and then we'll go from there.

45:38

Yeah, thanks, John. And Chance, thank you. Great, great job of.

45:43

one point I wanted to make, just to kind of share is what you heard was a sort of common theme that order to continue to push EVs forward While there's a lot of energy that's being generated.

45:54

There is a lot of concerns, there are some barriers, there's a lack of education.

45:58

And one of the online opportunities in the industry is really the dealers and their ability to take key people who we call curious AV curious customers and the helped to align them and make sure that they understand what moving to an E V is like. What are those things need to be aware of when we did a study, And I would encourage you to take a peek at this, maybe reach out to us if you're, if you want to talk about it.

46:25

But we did a study called EV Dealer Readiness Study. It's actually the second time we did it, But we, we did it back in 17.

46:32

And we did last year and the premise here was, we sent out an Army of shoppers to 22 different reselling brands to really understand what's it like trying to be by AB AB.

46:48

And what are some of the concerns or, or capabilities that dealers have in order to help a customer through that process and hopefully ultimately turn them into that future, being the buyer. So there's some credible information in that study that really showcases the importance of the dealership and the importance of the salesperson to address those concerns.

47:09

They use it.

47:09

So, again, along with the Navigator study, we have this type of a dealer ready ship readiness study. We would love to talk to you, if you're interested, Reach out to one of the three of us, whenever you like.

47:24

We have just a few minutes left, and there were some questions that came in, and I'm going to pose one of them. We'll see how much time we have.

47:31

But, John, I'm gonna throw this one to you.

47:34

This was, we talked a lot about the grid, and sort of the ability to work concert with this growth, to help promote it, to make sure that it's supportive.

47:45

So just your thoughts, certainly weigh in if you'd like to as well, But I'm going to direct it to John, as he was, it came up in his session, or his section, what utility companies need to do or can do to really stay up with that potential.

48:02

And the one thing that we've observed and what is needed is information. And I would say it's that communication plan, as it relates to what the utility is doing.

48:11

I mean, another thing that's come up, and we didn't talk about it, but this idea of green energy, and what are they doing as it relates to support and build out the solar and wind power as part of the overall grid. Because that's going to be important as we get more mature and broader is what is our access and tapping into that? Because there still is a percent of the grid, that isn't what we would call green. And so you want to continue to build that out, how are the utility supporting in that? And then ultimately communicating that another thing that any chance touched on this industrious idea of how the owners are taking advantage or not taking advantage of the incentive programs from the utilities? Right? And so it's a matter of making that aware, making that communicates so that the customer can feel confident about what is available to them, and how the utility can partner with them. So it's about education. It's about working on what is happening, so that the consumer, broader consumer can be aware that the grid can support this, Can't handle it, and feel confident with their choices.

49:18

Yeah, if I may, one of the data points that we didn't show in the presentation but which I personally found super surprising in the data, was the, the prevalence of Bev owners trying to supplement their their EV or their electricity electricity availability with solar panels installation at home.

49:38

It was really high, much higher than I expected.

49:41

So, that's another area that perhaps utility companies could facilitate lessening the demands on the grids by helping these being the owners produce some of their own electricity at home through solar and other .... Definitely. Great. Great. Great. Great thoughts, guys. I think we have time just for one more, so, chance, I'm going to direct it to you, but again, opened a job.

50:05

So, we, we spend a lot of time talking about and showing the differences between the different generations, whether it's Gen Y, Z, Gen X, or boomers, and there, their interest.

50:17

It was moving forward.

50:18

So, the compelling thing is, if boomers, who have the most buying power and by most of the vehicles are less interested, it can be done to promote their interest and then slip on the youngest consumers who have the most interest. But maybe have the least amount of means, what can be done to support their interests?

50:38

Yeah. So, it's interesting that this whole, looking at the data by my generation, was a lot more revealing than I expected it to be.

50:46

And look, there's more to identifying, you know, what type of customer you are than just how old you are.

50:53

What am I mentor is a JD. Power. He used to say, Demography is not Destiny. But, boy, there's something there were related to age and Battery Electrics. If you look at the younger folks, you mentioned, part of the problem, you know, their tech forward, They're interested. They want to be part of what they see as a solution.

51:09

To, you know, climate change and Battery Electric can do that, but I just can't afford it.

51:15

So, you know, the try to answer is, Hey, lower your prices, but that's a lot easier said than done, obviously.

51:21

But as you're in the product development life cycle, and you're an OEM, you gotta think long and hard about how to develop a lower price vehicles so that those people can take advantage of their interests.

51:32

We also saw in one of the charts that I showed you sort of a latent demand for more incentive program, And maybe that's something that the industry can do.

51:42

First time, webinar incentive programs, for example, when it comes to the boomers.

51:48

Well, that's tricky. I mean, obviously, there's a lot of education that needs to take place there.

51:52

Because there probably are some false conceptions there. But there are also just these really severe demands, right? I want a vehicle, built 360 miles.

52:05

No, I don't want to have to worry about my battery. So, you really need to get inside their heads and frankly acknowledge that they have these attitudes.

52:14

They sometimes think that some of us want to sort of poo poo these attitudes because they can be it can ultimately be false like people that are concerned that the grid won't be able to handle it.

52:25

The grid should be able to handle it, but that doesn't lessen the fact that people are concerned about it. So, you've got to deal with those, head on, with education efforts and things like that.

52:33

Yeah, one thing I would further add to that, related to the price parameter is this idea of the cost of ownership that doesn't go into that, that natural education or natural mindset. This idea is all I think of my monthly bill. Or what's my monthly car payment? The one thing that we're not, realizing with the gas prices, being what they are. Your monthly car payment is kinda supplemented by not having to pay for that gas monthly, right. So there's this idea, and it's an education game, right. It's a matter of communicating that effectively. You can very attractive leases. You can get very attractive overall prices and then you say, and you don't have to pay for that gas if you're, if you go that route, if that makes it. So I think it's education for sure. And it's just a matter of communicating effectively. It's going to take the industry to keep harping on it overall for consumers to broaden it because it's back to what chance that we have 5%. 5% are we getting best right now, 95% aren't.

53:29

So, as it grows and develops, it's about education knowledge You've got options. And, with everything else, transpiring, it relates to putting us in a recipe for growth.

53:39

But, it just has to be managed effect, the best way, I would say.

53:43

Very good. Hey, guys, great insights. Thank you, very much. I want to thank all of you as well for attending, and we look forward to having you at our next webinar.

53:54

Will sure to communicate that out as the schedule materializes. But with that, I'm going to turn it back over to Ellen.

54:04

Wow. Thanks, guys. I just really want to thank Mike and John and Chance for today's really informative presentation. And also, again, thank you, everyone, for joining us.

54:16

If we didn't get to your question, we will do so by e-mail, and do remember to please check out the materials that we've uploaded into the webinar console. For more information about today's presentation and the Mobility navigator's study.

54:34

Please reach out to us at any time. That now concludes today's webinar.