Luxury Hybrid SUVs Important In 21st Century Auto Market, Says Strategic Vision
21 September 1999
Luxury Hybrid SUVs Important In 21st Century Auto Market, Says Strategic Vision
SAN DIEGO, Sept. 21 -- Despite all the interest in sport
utility vehicles (SUVs), those in the luxury category fall short of what their
owners desire, says Strategic Vision. Both the attributes owners have said
are important and the emotional response scored lower across the board for
luxury SUVs than for traditional luxury cars on both the San-Diego-based
research firm's Total Quality and Total Value indices.
"That leaves room for vehicles that can bridge the gap," says Strategic
Vision vice president Daniel Gorrell, "such as hybrid SUVs like the Lexus RX
300, that deliver the ride and handling of a car with the flexibility and
cargo area of an SUV. Our data show that on both an attribute and an
emotional level, well-executed versions will do extremely well."
On the emotional level, continues Gorrell, "We've identified that Luxury
SUV buyers particularly want a vehicle that 'makes me feel in control,' 'is
able to handle anything,' 'adds to the fun in my life,' and 'creates a sense
of freedom.' Yet they deliver less well on these dimensions than either
luxury cars or the RX 300. They also do less well in providing control, ease
and convenience and in delivering a fun driving experience."
Luxury SUV owners cite a variety of tangible reasons for choosing those
vehicles, as shown in the graph.
Purchase Reasons
% extremely/very important
Interior Roominess 90
Quietness 85
Technical Innovations 84
4-Wheel Drive 83
Resale Value 78
Power and Pickup 76
Cargo Space 72
Value for Money 72
Price 71
Passenger Seating 69
"In all areas except interior roominess," says Gorrell, "luxury cars and
the RX 300 outscore luxury SUVs. Obviously, manufacturers are not completely
delivering the kind of vehicle most of these buyers want."
Differences in delivery between luxury cars and luxury SUVs are most
pronounced in fuel economy. The following table reflects how much lower
luxury SUVs score than luxury cars.
Luxury SUVs vs. Luxury Cars
difference in % excellent/very good
Fuel Economy -32
Quietness -14
Engine Performance -11
Ease Entry/Exit -11
"Again, in all of these areas," says Gorrell, "we find the RX 300 scoring
almost as well or better than luxury sedans. This suggests there's room for
luxury SUVs with more car-like sensibilities in the driving experience."
Manufacturers planning luxury and hybrid SUVs would do well to pay
attention to the following areas in order to best improve buyers' satisfaction
with these products. These numbers are based on actual owners' input and show
which area would most positively improve their satisfaction with their
vehicles.
Most Impactful Improvements (out of 100 possible)
Handling 82
Style 79
Comfort 72
Convenience 69
Quietness 67
Interior Craftsmanship 62
"Note how many of these factors are areas in which cars do well," says
Gorrell. "Cars are more nimble and offer greater comfort and convenience
because they're easier to use. Let's face it, drivers want the best of both
worlds. Those manufacturers that give it to them will be very successful."
Press coverage and most industry forecasters report that the next few
years will see an influx of hybrid SUVs aimed at filling the gap between the
desire for SUV size and flexibility, tied to freedom and control issues, and
more car-like nimbleness, comfort and ease of use. BMW, Chrysler, Porsche and
Volkswagen, to name a few, are reported to be developing this type of luxury
vehicle.
Based on data from its 1999 Vehicle Experience Study(TM), a syndicated
survey of more than 80,000 new vehicle buyers conducted after at least 90 days
of ownership, Strategic Vision suggests the following recipe for
manufacturers' success in designing new luxury hybrid SUVs:
1. Maximum space efficiency: make it larger on the inside and smaller
outside.
2. Make it versatile to handle as many different needs as possible. This
gives more freedom and control in the ownership experience.
3. Give the driver more control and maneuverability. A nimble vehicle
delivers a lot of emotional impact.
4. Make the styling strong, not wimpy. The truck image works well for
traditional SUVs. It's just the driving experience that is less
positive.
5. Add more luxury finesse: quietness, comfortable interiors, handling,
ease and convenience of use, interior craftsmanship and style.
"We're really seeing the birth of a whole new vehicle segment," concludes
Gorrell. "Many people who want the capacity and security of an SUV don't like
the truck-like driving experience or the lack of ease and comfort. Aging baby
boomers will appreciate the ease of entering and exiting a more refined
approach to the SUVs they've loved but many have outgrown."
Strategic Vision is a San Diego, California, based research and consulting
company that specializes in understanding consumer and constituent motivation.
It monitors and reports on trends in the automotive industry in addition to
conducting proprietary research for both automotive and non-automotive
clients. For questions or additional information, please contact Daniel
Gorrell at (714) 544-3466.
Appendix
Total Quality Index(TM)
Luxury Sedans 901
Lexus RX 300 895
Luxury SUVs 866
Total Value Index(TM)
Lexus RX 300 764
Luxury sedans 744
Luxury SUVs 683