US Driver Interest In Hybrid Drops When Technology Premium Is Factored In

US drivers are looking for ways to increase fuel efficiency, but a recent survey conducted by JD Power and Associates shows that while nearly three-fourths of potential new car buyers were interested in purchasing a hybrid vehicle, one third of respondents said they were no longer interested in hybrid vehicles when the cost difference between a conventional model and a hybrid exceeded $5,000. While the overall cost of operating a hybrid vehicle drops as the price of gasoline rises, consumers are still sensitive to the impact of a vehicle's cost on their bottom line.

In the same survey, consumers also noted that they were interested in in-vehicle entertainment systems and advanced safety technologies. JD Power and Associates noted that there was a sharp increase in interest for in-vehicle electronics among respondents under 30 years of age. Blind-spot detection, backup assist and navigation were indicated as the features respondents were most interested in.

At the same time, buyers in this age range were most concerned about the price of vehicles, leading to speculation that the most popular vehicles for this segment would be those that offered the most number of built-in electronics at the lowest price.

Source: JD Power and Associates