EV sales are stagnant, and the market needs education: new buyers face the dilemma of too many choices

On June 30, according to CNBC, buying a car has never been easier. But for the foreseeable future, shoppers entering traditional dealer showrooms may face a new challenge: a bunch of EV products.

With the popularity of all-electric vehicles in the United States, automakers are increasingly introducing a variety of hybrid vehicles as an alternative to electric vehicles and traditional gas engines.

Multiple models mean more choice for customers, but it also creates more complexity for automakers and consumers, many of whom are returning to the new car market for the first time in years, amid unprecedented supply chain shortages and record used car prices.

Paul Waatti, director of industry analysis at AutoPacific, said: "It's good for consumers to have more options in the market, but only if they understand the difference. We need to be clearer about what these terms and abbreviations actually mean, as well as the potential pros and cons.

Today, car buyers can choose from conventional internal combustion engine (ICE) vehicles, mild hybrid electric vehicles (MHEVs), hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), fuel cell electric vehicles (FCEVs), and battery electric vehicles (BEVs), also commonly referred to as EVs.

Stellantis will also be launched later this year: a range-extended electric vehicle (REEV), similar to a plug-in hybrid, but can be used exclusively as an electric vehicle, with an electric motor powered by a gas engine.

Each type of car may be better suited for different types of customers. With the exception of electric vehicles and fuel cell vehicles, all other vehicles continue to offer traditional internal combustion engines combined with electrification technologies such as batteries or engines to improve performance or fuel economy.

Heather Seymour of St. John's, Florida, said she did a lot of research before buying the 2022 Jeep Wrangler Rubicon plug-in hybrid, known as the 4xe model.

"I knew I wanted to give hybrids a try. I'm not ready for an all-electric car yet, so plug-in cars definitely interest me." Seymour said she usually uses the all-electric version of the SUV, except for long trips. "The more we know about it, the clearer we know what we want."

Electric car naming

While consumers may not need to know every abbreviation or technology to find the right model for them, automakers' consumer-facing naming doesn't really help with that.

For example, Hyundai's Genesis brand refers to its all-electric vehicles as electric, while many other brands reserve the term for hybrid vehicles.

Chrysler's Pacifica minivan is a plug-in hybrid that is labeled as a regular hybrid, while Toyota markets some of its traditional hybrids as hybrid electric vehicles.

Stellantis says its REEV cars are not plug-in hybrids, although they operate similarly.

"Every car manufacturer uses different terminology. There is no standardization, which creates some confusion for consumers." Varti said.

Some automakers, such as General Motors, also use traditional nameplates, such as the Chevrolet Blazer and Equinox, as new electric vehicles that have little in common with gas-powered electric vehicles other than their names.

Stellantis 的 Jeep 还将Wagoneer名称用于两款大型燃气动力 SUV 以及一款较小的全电动Wagoneer S SUV。

Jeep CEO Antonio Filosa said he wasn't worried about any confusion because the brand has a long naming tradition where customers can decide which vehicle best suits their needs.

"I think we need education, but after education, consumers will have more choices." He said in a recent interview. "It's all for the benefit of consumers. They will have a lot of flexibility."

Education is key

Auto executives from Japan, South Korea, Detroit, and Germany agree on the need to educate consumers.

Whether electric or all-electric vehicles, it is critical for automakers to meet increasingly stringent emissions and fuel economy targets, as well as to scale up production, lower prices, and increase profits.

Russell Wager, Kia's vice president of marketing for the U.S., told CNBC earlier this year: We don't want to force customers to do something they aren't ready for. We are doing our best to educate them.

Kia and its dealers have posted a page online to debunk rumors to answer concerns or common questions about electric and hybrid vehicles. These issues include battery technology issues as well as practical questions such as whether electric vehicles can be washed (yes).

General Motors takes it a step further. The Detroit automaker launched EV Live in 2022. It's an online video platform, now called GM Energy Live, where participants can interact one-on-one with EV experts to learn about EVs and charging.

Ford recently launched its own video-based training program for its more than 3,000 U.S. franchised dealers to improve customer service, better engage employees, and provide dealers and companies with more data to help sell cars.

Automotive industry executives say companies and their dealers should be trained and educated, regardless of the advantages of a new car.

Jérémie Papin, chairman of Nissan Motor Company, said: "At the end of the day, every customer is different.

Earlier this year, the company launched a self-driving car in the Americas. "I think it's about what the car can do for them, not necessarily how the technology works." He said.

The automotive industry has more powertrain and propulsion options than ever before. The details are as follows:

Internal Combustion Engine (ICE): A conventional vehicle that runs on gasoline or diesel.

Mild hybrid electric vehicle (MHEV): An ICE vehicle that has roughly the same functions as a non-hybrid vehicle but may contain minimal electrification features, such as a small battery, regenerative braking, or an electric motor.

Hybrid Electric Vehicles (HEVs): Take the Toyota Prius, for example, which is a car that combines a hybrid powertrain with an engine.

Plug-in hybrid electric vehicles (PHEVs): These vehicles use an internal combustion engine combined with a hybrid powertrain and include a larger battery than a traditional hybrid vehicle and a plug to charge the car's battery. They typically allow the driver to travel a certain amount of mileage on a battery before they need the engine to power the car or truck.

Battery electric vehicles (BEVs): These battery electric vehicles do not have an internal combustion engine. Instead, they contain an electric motor powered by a large battery. They need to be charged using an electrical outlet and a charging port or charging station.

Fuel cell electric vehicles (FCEVs): Hydrogen fuel cell electric vehicles and devices operate in a very similar way to battery electric vehicles, but are powered by electricity generated by hydrogen and oxygen rather than pure batteries, which typically contain lithium batteries. They use nozzles to refuel, similar to conventional gasoline and diesel cars.

Extended-range electric vehicles (REEVs): This is an emerging technology that is primarily used as PHEVs, but after the battery runs out of energy to power the vehicle, the engine acts as a generator specifically to power the electric motor. Vehicles still run like electric cars, rather than being powered directly by the engine.

Consumer adoption

According to Cox Automotive, 96% of people who intend to buy a car in the next 24 months are likely to consider buying an electric vehicle three to five years before if there is a deeper understanding of how EV ownership works.

This is true for both Florida resident Seymour and Kevin Storeymans of Winnipeg, Canada, who rented a Jeep Wrangler 4xe plug-in car. He said he wasn't ready to buy an all-electric car, so he decided to rent a plug-in car to save money on fuel and as a potential stepping stone to buying an electric car.

"It's the best of both worlds. You have both a petrol engine and an electric range." Said Stolimans, who had previously driven a V-8-powered jeep. "Do your research. There is so much information and misinformation about plug-in hybrids and electric vehicles."

According to Cox Automotive, consumers spend more time researching electric vehicles on average than they do on traditional gas-powered vehicles. The company found that about 90% of EV buyers have a model in mind before they go to a dealership or order online.

"There's a lot of information, and it's hard to explain." Stephanie Valdez Streaty, Director of Automotive Industry Insights at Cox, said. "Education is crucial. It's consumer awareness, education, and engagement."