Plug-In Hybrid Electric Vehicle Value Proposition Study
7/1/2010
Plug-in hybrid electric vehicles (PHEVs) have been the subject of growing interest in recent years because of their potential for reduced operating costs, oil displacement, national security, and environmental benefits. The primary value of PHEVs to the consumer is their likelihood to markedly reduce fuel costs by substituting gasoline with electricity. However, PHEVs are expected to cost more to purchase than comparable internal combustion engine (ICE) vehicles or hybrid electric vehicles (HEVs), in large part because of the cost of batteries. Despite the potential, long-term savings to consumers and value to stakeholders, the initial cost of PHEVs presents a major market barrier to their widespread commercialization. The purpose of the PHEV Value Proposition Study (VPS) is to identify and evaluate value-added propositions for PHEVs that will help overcome this market barrier.
Authors: Cleary, T.; McGill, R.; Sikes, K.; Hadley, S.; Marano, V.; Ungar, E.; Gross, T.