Overall, the study shows that many consumers have adopted more environmentally friendly habits, while others have not acted as quickly. “The current momentum surrounding green initiatives and reduced energy consumption presents utilities and home improvement companies with a golden opportunity,” says Jonathan Drost, Account Executive, Energy for The Nielsen Company. “When going green is cost effective, such as opting for Energy Star appliances or government incentive programs, customers migrate in that direction. The biggest hurdle for energy companies is educating the consumer on things like Smart Grids, Energy Efficiency programs and Renewable Green Energy.”

Red State, Blue State, Green State, Clean State
While clean energy and conservation seem like topics on which everyone can agree, consumers participating in green energy programs, like Energy Star tax credits or green pricing programs offered by utility companies, show party line splits. With roughly 3 percent of households participating in these programs, homes identifying as “liberal” or “moderate” are more likely to take part than conservatives.

The level of participation varies widely by region. The west (consisting of California, Oregon and Washington) has embraced green energy programs far more than any other region, comprising 24 percent of all participation. This is due largely to the fact that California has had green pricing programs in place for many years.

Demographically the responses indicate that green energy program participation was greatest among the higher educated and those making over $50,000. But, surprisingly, a higher proportion of those making between $50,000-$100,000 (34 percent) participated compared to those making more than $100,000 (30 percent). Participants also skewed younger, with 40 percent falling between the ages of 18-34 and 39 percent in the 35-54 year age range. Those above 55 make up 20 percent of those taking part in green programs.

Here Comes The Sun
Renewable energy sources are at the heart of the emerging green economy, and if consumers have any say, solar would be their carbon neutral source of choice.  “I believe solar came out on top as a preference because it is a technology that consumers can identify with,” Drost offers.  “Not only can a consumer place solar panels on their home or purchase solar water heaters, but also they see retailers installing solar panels on their roof and hybrid cars with solar roof options. It’s been a media hot topic as well.”

The Drive for Plug-ins
Plug-in hybrids may help push consumers away from their oil-centricity. While only 3 percent of households say they plan on buying a plug-in hybrid, an additional 24 percent said they would purchase once the technology becomes more widely used.

Fifty-eight percent of respondents said they would wait until their current vehicle needs to be replaced before running out to purchase a plug-in. Still, there is a core group that remains pro-gas-guzzler. Fifteen percent of those polled said that they would keep buying gas cars until they are no longer available.

“This is an exciting and challenging time in the industry,” says Drost. “We are past the ‘early adopter’ stage in many areas of Energy Efficiency and Renewable Energy. It will require an increase in education, consumer targeting, and messaging to bring the next wave in. When you consider 95% of Households say they are willing to change the way they consume energy, the next wave could be very, very large.”

• Download The Nielsen Company’s Energy Trends report.

The re-designed Forester boosted sales for Subaru, while Hyundai and Kia launched new models appealing to younger drivers.  Existing models, such as the Sorento and Sedona posted strong sales growth (69% and 48%, respectively).  And Lincoln was the only U.S. brand to outperform the market (although sales remained in negative territory on a year-to-year basis).   Foreign automakers benefitted disproportionately from escalating gas prices because consumer perception that their vehicles, especially hybrids and diesel models, are more fuel-efficient.  Hybrids remain an exciting but emerging segment, as consumers take their time investigating the genre.  Meanwhile, consumer interest in the basic economy vehicle was solid when gas prices were high, but dropped sharply once gas prices dropped.

Read more about the positive developments in the auto industry in 2008, as well as consumer behavior with respect to shopping for and buying vehicles in the July edition of Consumer Insight

“These estimates help manufacturers and marketers better understand the markets that have ‘green’ potential, and help them focus their resources,” said Bruce Wilkinson, Vice President of Media and Communications for Nielsen Claritas. “Additionally, it helps them to plan media campaigns and determine inventory levels for each model, market-by-market.”

The research looked at the national ownership rates of high-mileage vehicles including the Honda Fit, Toyota Prius, Toyota Yaris and Mini Cooper. Using auto registration data from RL Polk and Nielsen’s PRIZM segmentation, the percentage of each segment owning these vehicles was calculated. Individual market potential then was calculated based upon the segment composition of each market.

The top ten was made up primarily of coastal metropolitan area, including Boston (4th), San Diego (5th), Chicago (6th) and Los Angeles (9th), all with populations of over one million. Two exceptions were the relatively small areas of Monterey-Salinas, CA (7th), which has a population of 234,000 and Honolulu, HI (8th), with a population of 442,000.

Places where gas guzzlers still rule the road tended toward the south and Midwest, with the states of West Virginia and Mississippi holding seven of the ten areas that had the lowest rates of green auto ownership.

Learn more about Segmentation & Targeting.

Some insights on the Insight

The 2010 Honda Insight is having a tough time breaking out of the Prius’ shadow as the majority of consumers often compare the two vehicles. However, keep in mind that the Honda Insight just came on the market in March 2009 while the Toyota Prius has been around for roughly 10 years. Buzz generated by the Insight’s release in March was no comparison to the attention it gained at the Paris & Detroit Auto Shows.

Shoppers, Buyers and Rejecters are turning to Twitter to tweet about their intentions and experiences. Thus far, the 2010 Honda Insight is outpacing both the 2010 Prius and 2010 Ford Fusion on Twitter.

Which hybrid has the most “positive” charge?

2010 Honda Insight online discussion is driven primarily by comparisons to the Toyota Prius. Price is frequently referenced as the Insight’s selling point; however, some do not feel that the difference in price makes up for the Insight’s lower MPG rate (compared to the 2010 Prius) or perceived lack of features. When diving into the topics surrounding the conversations around the Insight and Prius to gauge sentiment, the Insight created a more polarized view.

If consumers regularly evaluate the Insight as a potential “Prius Killer,” the Insight may fail to emerge with a unique reputation, divorced from the Prius. The perception that the design of the Insight is too similar to that of the Prius highlights the belief that the Prius is the gold standard to which all other hybrids must aspire. Insight and future hybrid cars will have to keep an eye not only on the road, but also the web to help shape the conversations of the new breed of hybrid shopper.

A Look Under The Hood

A. Prius discussion spiked in the summer months, driven by its status as the benchmark hybrid in the time of high fuel prices and buzz about the next-gen version.

B. Peak buzz for the Chevy Volt in September was driven by the unveiling of the 2011 production version and publicity events.

C. The Nissan GT-R generated strong buzz throughout 2008, peaking in October when Porsche contested its Nürburgring lap time.

D. Ford Fusion buzz shows an upward trend, driven by consumers discussing updates for the 2010 models, the debut at the L.A. Auto Show and the hybrid version’s surprisingly strong fuel economy.

If you are interested in the complete Monthly Automotive Industry Overview, please contact Larry Black.