SOURCE: A.T. Kearney

A.T. Kearney

February 05, 2013 10:00 ET

Study: Alternative Power Trains Displayed at Recent Detroit Auto Show Outnumber Actual Sales of APT Vehicles by Three to One

OEMs Displayed Widely Disproportionate Number of Alternative-Fueled Power Train (APT) Vehicles Compared With Actual Market Share or Consumer Demand for Them

CHICAGO, IL--(Marketwire - Feb 5, 2013) - Today A.T. Kearney released a study called "The Alternative Power Train Push," based on findings and data collected at the recent Detroit Auto Show. The study's authors found that auto manufacturers displayed a disproportionate number of alternative-fueled power train vehicles compared to actual sales or consumer demand for them.

Brian Irwin, Partner and leader of A.T. Kearney's Automotive Practice, noted, "It was of interest to us that, after five to eight years of comparatively flat sales of new alternative-powered vehicles, there was a 71 percent spike in the 2011-2012 year. Is it a trend, or this something that OEMs are pushing?"

The study team found that auto makers showed, on average, three times more alternative power train (APT) vehicles than they actually sell. Toyota led the pack, with almost one of every two vehicles displayed having an APT engine. Only 15 percent of Toyota's sales are alternative-powered.

"We began to see a correlation between the APT numbers and upcoming government CAFÉ requirements for radically better mileage and emissions by 2025," said Brian Irwin. "This study points to a possible new push for consumers to consider alternative power train vehicles as a wise purchase in the year to come."

About the Study
The A.T. Kearney study team evaluated vehicles on display at the 2013 NAIAS across 23 brands to determine the level of focus from the automakers at the show on alternative powertrain vehicles. For purposes of this study the team defined alternative powertrain vehicles as those with a hybrid, plug-in hybrid or fully electric powertrain system. Concept vehicles were excluded from the analysis.
To draw insights on how the percentage of alternative powertrain vehicles on display at the NAIAS corresponded to the percentage of alternative powertrain vehicles actually sold, the team evaluated alternative powertrain vehicle sales as a percentage of total vehicle sales by model for each of the 23 brands in the study.

About A.T. Kearney
A.T. Kearney is a global team of forward-thinking, collaborative partners that delivers immediate, meaningful results and long-term transformative advantage to clients. Since 1926, we have been trusted advisors on CEO-agenda issues to the world's leading organizations across all major industries and sectors. A.T. Kearney's offices are located in major business centers in 39 countries.

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