Q1) Based on the trade-offs to be made, how would customers choose a

PHEV, EV or HEV?

Due to the depleting resources of fossil fuels leading to its fluctuating prices, increased taxation and
pollution (caused by burning of fossil fuels), there is a drive for the auto-mobile manufacturers,
consumers and the government to find alternatives to the dependency on fossil fuels for
automobiles.

To address the same, consumers have the option to choose between PHEV, HEV and EV.

HEV
DEFINITION 1) Hybrid Electric vehicles are
powered by both electricity and
gas with easy transition from
gas to electric power.
2) Mild hybrids used gas power
only to move the car from a
standstill.
BENEFITS 1) Provided better fuel economy
compared to the traditional fuel
run vehicles
2) Premium Lexus brands
provided high end customers
the guarantee of both
performance and environment
consciousness.
3) It provided the option of
Chevrolet Tahoe SUV 7-seater
for bigger families and small car
options as well (affordable
options)
4) Third generation Prius
offered lower emissions with
greater fuel efficiency with
harmony installations that
provided flower sculptures,
seating, electrical outlets and
free Wi-Fi spots
5) 2010 Ford Fusion was an
affordable mid-sized car with
good features.
DISADVANTAGE Features like air conditioning
could shut off while being
operated on battery.
PHEV
It has similar technology like HEV
but uses a lithium-ion battery
rather than Ni-Cad batteries that
allows greater range and speedier
recharge that can be charged by
plugging into an electric outlet.
1) It runs mainly on electricity
until the battery runs out of
power thus reducing the cost
spent on fuel.
2) It has fast charging options.
3) Recharging Chevy PHEV would
cost as low as getting a cup of
coffee and driving it solely on
electricity would cost $0.02.
4) It can generate its own
electricity using a gasoline
generator and run hundreds of
miles on a single tank of gas.
5) The plug-in Prius could travel
12 miles per charge
6)Fisker Automative developed
“green- luxury” sports car
1) A way to include the added
strain on power grids had to be
found to avoid having to limit the
number of rechargeable vehicles
to 1 per 5 or 6 houses.
2)The hassle of operating a daily
plug in vehicle.
3) Low durability of batteries in
cold or hot climates.
EV
A true emission-free vehicle
that runs completely on
electrical charge.
1) Roadster EVs could be
recharged in just 4 hours with
220-volt outlet and can run for
240 miles on one charge.
2) The Leaf had a 100-mile
range with a price tag of
around $30,000
3) Charging of the vehicles in
the right time slots could
reduce the electricity
consumption bill of certain
households.
4) The electricity will be
generated by lower-emitting
processes
5)It would encourage
investments in renewable
energy sources.
6) Free parking for EVs
7)Subscription service for EV
batteries.
1) Trips exceeding the range of
the electric capacity would
become inconvenient
2) A person owning one car
might find it difficult to travel
long distances using an EV.
3) EVs might end up as race
cars but not a family car for
long trips especially.

PSYCHOGRAPHIC Environmental effects
NEEDS concerned customers would
prefer completely emission-free
vehicle (EV) over HEV
COST TO THE 1) Since HEV are partly run by
CUSTOMER fuel, the cost of using an HEV is
uncertain as it depends on the
fluctuating fuel prices.
2) There are different models
with different price range to
cater to different customer
budgets.
SEATING Different size availability
CAPACITY ranging from 7-seater to small
sized cars.
TECH - N.A.
ENTHUSIASTS
DEMOGRAPHIC Caters to families with multiple
NEEDS members and has segments to
cater to active lifestyle age
group as well
INFRASTRUCTUR No added plug-in charging
E NEEDS facility.
The Prius used a gasoline engine
and the application of brakes to
4) In case of complete battery
drain, there is no alternative way
to charge it.
5) Since EVs were not launched
much after PHEV, people might
just wait for EV to be launched.
Environmental effects concerned
customers would prefer
completely emission-free vehicle
(EV) over PHEV, but it still uses
more electric energy than fuel to
run.
1)The cost to the customer for
charging the battery would differ
according to local electric cost
during different timelines.
5-seater cars
N.A.
Caters to people of the age group
with medium distance travelling
requirements.
1)Added plug-in charging facility
2)Might have to put 220-volt
charging slots in their garages.
3)Recharging stations for longer
Environmental effects
concerned customers would
prefer completely emission-
free vehicle (EV) over HEV and
PHEV
2) Customers highly
influenced by high technology
products might not be
concerned by prices.
1) The cost to the customer
for charging the battery would
differ according to local
electric cost during different
timelines.
2) Some of them might even
take advantage low night-time
prices in some places and rely
on public charging could save
the drivers some amount.
3) It encourages charging of
the EVs during low charges
shift, making charging pretty
low for certain households in
their monthly consumption
and for climate zones where
the house is located.
The sizes ranged from 2
seaters to 5 seaters cars.
Tech-enthusiasts are ready to
buy high-tech/latest
technology products even
before its quality or reliability
is proved
1) It might cater to the age
segment that are tech-savvy
and don’t take much time to
adapt to new technologies
2) It would appeal to
customers who drove less
than 62 miles per day.
1)Might have to install 220-
volt charging slot in their
garages.
2) Recharging stations for
 charge its nickel metal while the trips are required longer trips are required
car was running unlike in PHEV.

AT HOME N.A. Charging stations have be Charging stations have be

CHARGING installed in home garages installed in home garages
OPTIONS
BATTERY LIFE 1)Uses lithium-ion battery that 1) Uses a lithium-ion battery 1)Charging of full electrical
(RELIABILITY takes more time to charge as rather than Ni-Cad batteries that capacity required which will
AND compared to the lithium-ion allows greater range and speedier last for around 240 miles.
DURABILITY) batteries used by PHEV. recharge that can be charged by
2)The HEV version of the Fusion plugging into an electric outlet.
could travel 47mph in electric- 2) Most models near the
powered mode, had a fuel introduction stage could be fully
efficiency of 41mpg in city charged in 6-8 hours using a 110-
traffic & could travel more than volt line & a 220-volt line could
700 miles on a single fill-up. charge as fast as in two-four
hours.
3) Low durability of batteries in
cold or hot climates
TECHNOLOGY 1)It changes slightly from the 1)It changes slightly from the 1)It is completely run on
CHANGES traditional vehicle system by traditional vehicle system by electric power with no fuel
providing a combination of both providing a combination of both requirement
electric and gas requirement electric and gas requirement
along with plug-in charging
facility
LEASING N.A. N.A. In mid 90s Toyota had
OPPORTUNITY developed an EV for lease and
GM had leased its EV1 before
it stopped its production in
2003
TAX INCENTIVES Policies are set in place to Policies are set in place to Policies are set in place to
encourage energy efficiency, by encourage energy efficiency, by encourage energy efficiency,
setting high gas taxes. setting high gas taxes. by setting high gas taxes.
CO2 taxes and penalties CO2 taxes and penalties CO2 taxes and penalties
GOVERNMENT Subsidies and rebates offered Car Allowance Rebate System Car Allowance Rebate System
REGULATIONS by government. Tax credit on purchase of EV
Car Allowance Rebate System such as GM’
BASIC USAGE It can be used for both short It can be used for distances till Trips exceeding the range of
FOR CAR and long distances when the battery lasts and then the electric capacity would
(AVERAGE require charging post usage of become inconvenient
LENGTH OF fuel
TRIPS)
NUMBER OF A person owning multiple cars N.A. A person owning one car
OWNED can get a HEV for long distances might find it difficult to travel
VEHICLES OR long distances using an EV.
PUBLIC
TRANSPORT
FACILITIES
TESTDRIVES Difficult to analyse the charging Difficult to test the availability of Difficult to test certain
station availability and other mechanics that understand the features, charging station
facilities simply in a test drive working of PHEV and availability availability or lasting of battery
of plug in chargers in a test drive in just a test drive.
ENVIRONMENTAL It gives out lesser emissions It gives out lesser emissions than It is the most environmentally
FACTORS than traditional cars but not as a traditional fuel run car but not friendly as compared to HEV
less as EVs as less as EVs and PHEV