UK Fuel Economy Labelling Scheme Design of Electric and Plug-in Hybrid Labels

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UK Fuel Economy Labelling SchemeDesign of
Electric and Plug-in Hybrid Labels

• Gloria Esposito, Head of Projects, LowCVP
• 45th APEC Meeting - Vehicle Fuel Economy
  Labelling Workshop
• Singapore Tuesday 24th March 2015

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LowCVP is a unique stakeholder organisation, our
mission is to accelerating a sustainable shift to
low carbon vehicles and fuels
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UK Government has introduced various policies to
encourage the shift to low carbon cars
The provision of information and incentives play
important roles in influencing car buyers
behavior.
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LowCVP has strong experience in the UK vehicle
fuel economy labelling scheme and car buyer
research

• Led the design and roll out of a new style car
  fuel economy label in 2005 in partnership with
  the UK automotive industry and Government.
• Information presented to influence consumer
  choice towards more efficient models
• - CO2 emissions in colour-coded road tax
  bandings
• - Vehicle tax (VED)
• - Estimated fuel cost
• - Fuel consumption in miles per gallon
  (MPG)
• Monitored the fuel economy labelling scheme
• Investigated how to improve the design fuel
  economy label and develop EV/PHEV labels
• Investigated car buyer attitudes

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Car buyers take into account many factors when
purchasing a new car - fuel consumption and cost
rate highly
Car buyers are interested in vehicles with lower
running cost BUT Whilst car buyers say MPG is
very important they fail to purchase more fuel
efficient models MPG Paradox
LowCVP Car Buyer Survey 2010
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Car buyers use a variety of information sources
to influence their purchase decision

Internet
Research indicates the internet plays a greater
role than the label
How and when do different information sources
influence consumer behavior?
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LowCVP consumer research study to examine new
fuel economy label designs, 2012

• Overall Aim
• To examine how the design and information
  presented on the UK fuel economy label could be
  improved to encourage the purchase of more fuel
  efficient cars.
• Objectives
• Alternative display of running cost information
• Place greater emphasis on fuel consumption (MPG),
  less on CO2 emissions
• Integrate behavior economics concepts (nudging)
• New ways to compare MPG or running cost
• Explore how to present information for future EV
  and PHEV labels
• Explore how information through digital
  technology can link with the label
• Stakeholder Collaboration
• Toyota, Nissan, Renault, Ford, SMMT (automotive
  trade body), UK Government, Millbrook (experts
  vehicle testing)

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Methodology - series of labels were designed with
different presentation and information
Lose framing x1
Interaction with project stakeholder group to
agree information to be presented and design
Fuel and electricity consumption, electric range
and CO2 emission figures obtained from type
approval test certificate for each car model
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Methodology label testing with car buyers

• Internet survey 1000 car buyers
• Six focus groups total of 60 car buyers
• Two rounds of label designs

• Website created featuring a fuel cost calculator
  and car comparison tool.
• Focus groups given smart phones to scan QR code
  on label

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Views On improving The Design Of The ICE Label
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Views On Financial Information And Presentation
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Response To Behavior Economics (Nudging)
Very negative response from car buyer to lose
aversion messaging Much prefer being told what
money they would save!
I am completely turned off by the message, would
not consider buying the car
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Response To QR Code Reader And Tools
I was really impressed Ive never really used
one of these before, and when we did the
calculator I thought that was brilliant
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Views On The Electric Car Label Design
This clearly shows EV are cheap to run, I would
consider buying one
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Views On The Plug-in Hybrid Car Label Design
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Refined Plug-in Hybrid Label
Presentation improved to explain weighted
combined refers to two fuels Concerns about
information overload As requested by focus group
EV charging time, range and charge map presented
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LowCVP led the design of the UK electric and
plug-in hybrid labels - introduced in 2014

• Response to amendment of the EU Labelling
  Directive zero emission cars enter labeling
  system
• Collaboration between LowCVP, automotive industry
  and UK Government
• EV Label - Key Information
• Electricity consumption miles/kwh
• Electric range (miles)
• Annual electricity cost
• EV recharging map website link

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UK PHEV Fuel Economy Label
Fuel and electricity cost - shows electric
mode cheaper
Explains weighted MPG
Weighted MPG and electricity consumption
(m/kwh)
Electric range
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One Year On EV/PHEV Dealership Survey

• LowCVP interviews car dealerships to understand
  adoption of EV/PHEV labels
• 98 of dealers display the EV/PHEV labels
• Section most across all dealerships is Running
  Costs (80), least Environmental
• 86 of customers (even those purchasing EV)
  talked in terms of mpg and most importantly
  focused on the costs of owning and running a car
• 80 of dealers find the label useful to compare
  across cars models
• Limited understanding of electricity consumption
  and electric range
• Staff made a number of suggestions for improving
  the EV and PHEV label design
• Language to be simplified
• Inclusion of diagrams/symbols
• Aesthetics/appearance adding colours to make the
  information stand out and to make the running
  cost section larger

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Dealership Interview Responses

• What pieces of info do you
• need to sell a plug-in vehicle?

Where do your customers get their information
from?
Which parts of the label do they mainly refer to?
What additional information may be useful on the
label?
Do customers ask any other questions about plug
in vehicles which aren't covered by the label
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Recommendations For VEFL Designs

• Keep simple, colour and symbols aid
  understanding avoid information overload
• Fuel/electricity consumption and running cost
  made prominent key influencers
• Comparative data useful consider pence per mile
  running cost
• Associate improved improved fuel efficiency with
  saving money
• EV/PHEV - electricity consumption metrics
  challenging (wh/km) consider miles/kwh or MPG
  equivalent
• PHEV - clear presentation to highlight fuel
  electricity consumption
• Include EV driving range and charge point
  locations
• Integrate with the internet smart phones - QR
  code for on-line tools/info
• Collaboration with stakeholders testing new
  label designs with car buyers

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• THANK YOU FOR LISTENING
• FOR MORE INFORMATION
• Gloria.esposito_at_lowcvp.org.uk
• http//www.lowcvp.org.uk