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Auto exec's waning enthusiasm for electric cars

Enthusiasm for electric cars is waning amongst automotive executives, according to a research report from KPMG.

A survey of 200 executives from 31 countries suggests the industry believes in further optimising petrol engines as the main focus for production.

36% of respondents expected consumer demand to be highest for plug-in hybrids over the next 5 year; followed by non plug-in hybrids (20%); and pure battery-powered vehicles down to fifth (11%).

John Leech, KPMG’s UK Head of Automotive, said: “There is an increasing realisation that the petrol engine has further scope for optimisation.

“This a quite a turnaround in direction and a sign that some of the newer technologies are taking longer than expected to emerge. This will benefit the UK which is the second largest manufacturer of petrol engine-powered cars in Europe and especially UK suppliers of turbochargers and direct injection petrol-engine components.

“The changing views on pure hybrids, plug-ins, fuel cell and battery-powered vehicles reflect the uncertainty as to which will be the dominant technology.

“In the short term, the individual driver is likely to prefer a hybrid, whereas urban fleets may opt for electric cars. However, it seems that pure electric vehicles will not prevail, at least in the next decade.

“Another critical consideration that the industry and public sector must address is when and to what extent an affordable infrastructure will be in place to address the recharging requirements of large numbers of electric vehicles or refuelling requirements of hydrogen-powered cars in the future.”

86% of the executives identify rising demand in BRIC countries and other emerging countries, and 6 out of 10 respondents said they will increase investments in the BRICS, which are estimated to account for nearly 50% of all global vehicle sales by 2018.

This was posted in Bdaily's Members' News section by Tom Keighley .