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Geodemographic Evolution to the Mainstream The Potential Evolution of EVs to the Consumer Mainstream in Canada: A Geodemographic Segmentation Approach Presented by Mark R. Ferguson, PhD May 2017

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Page 1: The Potential Evolution of EVs to the Consumer …mitl.mcmaster.ca/sites/default/files/Evolution of EVs to...1 Geodemographic Evolution to the Mainstream The Potential Evolution of

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Geodemographic Evolution to the Mainstream

The Potential Evolution of EVs to the Consumer Mainstream in Canada: A Geodemographic

Segmentation ApproachPresented by Mark R. Ferguson, PhD

May 2017

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Geodemographic Evolution to the Mainstream

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Partners

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Social Costs and Benefits of Electric Mobility in Canada: Funded by SSHRC

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According to McKinsey and Co. (2017)

• Consumer demand is beginning its shift to favour electric vehicles

– Strong disruption potential

• Awareness, Familiarity, Consideration, Purchase

– Between 30% and 45% in U.S. and Germany are at the consideration phase

• We assess mainstream potential in Canada with a comprehensive 2015 survey of households

– Digging deeper than early adopter patterns

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Sequence of the Survey

• Filtering and geographic (e.g. postal code)

• Environmental attitudes

• Inventory of household vehicles

• Vehicle purchase plan

• Rating of vehicle attributes

• Stated preference (education and scenarios)

• EV-oriented attitudinal questions

• Demographics and related

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Vehicle Powertrain Options

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We developed a synthetic population of Canadian households

• Each of about 13.5 million Canadian households was matched with one nearby record from the survey (in distance and urban hierarchy terms)

• This was done in such a way that constraints (targets) associated with small census areas were maximally respected when contained hhld records added up

• Targets were related to demographics and vehicle registration totals by primary makes

• Individual survey records were used multiple times even in the same small census area

• Detailed mapping facilitated for all aspects of the survey including EV attitudes/behaviour

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National Latent Class Choice Model

• A multivariate statistical model that helps us understand the predictors of choice of powertrain

• can segment households (put them into buckets) guided by demographics, location, attitudes of hhlds

• Different segments evaluate attributes (e.g. government incentives, electric range, vehicle maintenance costs) in different ways

• Each segment is a “mindset” (a bundle of evaluation tendencies) towards powertrains

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Characterization of 4 Latent “Mindsets”

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Mindset by Urban-Rural Index

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Mindset by Age of Respondent

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How much extra would I pay for a vehicle to gain an extra km of driving

range?

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How much extra would I pay for a vehicle to reduce its annual maintenance costs by $100?

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An Eight Segment Solution

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Conclusions

• Considerable potential to examine any aspect of consumer survey at fine levels of geography

• Generally strong openness to plug-in vehicles; disruptive potential confirmed by results

• Awkwardness of home charging in dense urban contexts a definite theme but still favourable perceptions of BEVs

• PHEVs were seen as more palatable in mid-2015

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FLEET RESEARCH

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Canadian Fleet Registrations

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Distribution of Sample by Sector

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Organization Employees and Fleet Sites

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Fleet Renewal Options

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Typical Fleet Choice Scenario

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Scenario Powertrain Shares Over 3 Distinct Surveys

Powertrain Corporate/Government Rental Consumer

ICE 34% 33% 44%

HEV 29% 25% 23%

PHEV 26% 23% 22%

BEV 11% 19% 11%

100% 100% 100%