Popularity of Diesel Fuel Declines, Hybrids Another Story

January 28, 2008

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IRVINE, Calif. — Despite the push from many groups to encourage the use of alternative fuels, consumers tend to be apprehensive about using diesel fuel as a mainstream source, a recent study indicated.

According to the January Marketing Research study from Kelley Blue Book, just 6 percent of surveyed consumers said diesel fuel would be successful as a mainstream source.

Compare that statistic to the 40 percent of consumers who indicated hybrids would work, 20 percent who favored hydrogen fuel cell and 17 percent who lauded flexible-fuel systems.

The decline of consumer interest in diesel fuel has remained steady, officials indicated. The interest in hybrids, on the other hand, has steadily grown.

According to Kelley Blue Book, the difference in consumer interest between diesel and hybrids nearly doubled between December and January.

Why? The study pointed to perceptions of diesel engines as being "dirty and noisy" and less fuel-efficient, as well.

"Many automakers are looking toward diesels as a very workable solution for the future, especially in light of the recently passed energy bill, but the results of this study should give them pause and make them realize they need to do a better, more thorough job of winning over the American consumer," explained Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book and Kbb.com.

Automakers could alleviate this discrepancy with more positive marketing of diesel fuels, Nerad added. It's all about educating the consumer.

"Clearly many Americans still think of the dirty diesels of the past and are not aware of the benefits of new clean-diesel technology. Some manufacturers, such as Volkswagen with its ‘Diesolution Tour,' are doing their part to ensure consumers are educated about today's diesels," Nerad continued. "However, not enough is being done by the auto industry as a whole to help American consumers understand the benefits of modern-day diesel technology."

On the opposite end of the spectrum, hybrids continue to be cast in a more positive light. In the Kelley Blue Book study, 61 percent of consumers indicated interest in hybrids.

Consumers also said they would be willing to pay an average premium of $3,135 for a gas/electric hybrid over a traditional gasoline-fueled vehicle, which is a significant jump from the $2,645 mark in December.

The Honda Civic was the most popular of all hybrids, with 35 percent of consumers saying they favored it, the study said. The Ford Escape and Toyota Highlander were next at 23 percent.

"As auto manufacturers look toward development of future products and technologies, it's important for them to track, trend and understand current perceptions among in-market new-vehicle shoppers," stated Rick Wainschel, vice president of marketing research and brand communications for Kelley Blue Book.

"Knowing where shoppers stand on these issues also can help manufacturers devise successful marketing campaigns to ensure proper education about new technologies and ultimately, success in the sales of their future products," Wainschel added.

According to Kelley Blue Book, the study was based on responses from new-vehicle shoppers in January. For more information, visit www.kbb.com.

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