CHICAGO -

The hybrid and electric vehicle market’s tough year and slide in sales this past summer may be due in part to lack focus and desirable product for certain demographics.

According to research company Mintel, the biggest potential in the market for alternative fuel vehicles is with black  consumers.

While automotive companies would suggest that a sluggish economy and lack of supply, as well as lowering gas prices, attributed to the slide in hybrid and electric vehicles sales in late summer and early fall (sales for hybrids were down 2.7 percent through August, despite U.S. vehicle sales being up 10.5 percent), Mintel would suggest the slide was caused by misplaced  priorities regarding demographics.

"Most believe the profile of the hybrid vehicle owner is a person between the ages of 35–55, with a household income over $75K, and a college education or higher. While this may be the current owner, the biggest potential in the market is with black consumers," asserted George Augustaitis, senior automotive analyst at Mintel.

And the consumer base’s responses seem to provide proof for this statement.

While encouraging hybrid and electric OEMs, dealers and marketers to “go after” this demographic, the company noted that during its study, it found 26 percent of black respondants were very concerned about carbon emissions.

And 30 percent even agreed that the new electric engines in cars like the Chevy Volt and Nissan Leaf are amazing feats of engineering.

Further backing  up the company’s assertion with numbers, according to Mintel, 12.5 percent of the black demographic already owns a hybrid or electric vehicle, with the potential for that number to grow significantly in the next year.

Illustrating the potential for sales growth, Mintel noted, 36 percent would be interested in buying one for their next vehicle purchase, while 26 percent are unsure about their next purchase.

Also, with many consumers still unsure about spending the extra money it takes to purchase an alternative fuel vehicle, Mintel contends this isn’t as much of a concern among black consumers.

According to the company’s research, black respondents were the most willing to spend an additional $3,000–$5,000 to purchase a hybrid or electric vehicle.
And 31 percent they would definitely spend $1,000–$3,000 more to get behind the wheel of an environmentally friendly unit.

Emotion seems to play a part, as well.

Company officials noted that black individuals were also the highest respondents who say they would feel proud to own a hybrid or electric vehicle.

"With the low ownership numbers of hybrid and electric vehicles among  black shoppers, the optimistic statements about pride of ownership and willingness to spend more suggest there is pent-up demand amongst black consumers for hybrids and electric vehicles," Augustaitis surmised.

"However, the sales and ownership numbers do not show the same story. This would suggest that there are no hybrid or electric vehicles on the market that are appealing to the black population,” he concluded, stressing that OEMs could potentially benefit from aiming designs at the black demographic.