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

1. 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

2. LowCVP is a unique stakeholder organisation, our mission is to accelerating a sustainable shift to low carbon vehicles and fuels

3. 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.

4. LowCVP has strong experience in the UK vehicle fuel economy labelling scheme and car buyer research Led the design and roll out of anew style car fuel economylabel 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

5. 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

6. 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 Label How and when do different information sources influence consumer behavior?

7. 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) LowCVP consumer research study to examine new fuel economy label designs, 2012

8. 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

9. 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

10. Views On improving The Design Of The ICE Label

11. Views On Financial Information And Presentation

12. 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’

13. Response To QR Code Reader And Tools ‘I was really impressed – I’ve never really used one of these before, and when we did the calculator I thought that was brilliant’

14. Views On The Electric Car Label Design ‘This clearly shows EV are cheap to run, I would consider buying one

15. Views On The Plug-in Hybrid Car Label Design

16. 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

17. 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

18. 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

19. 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

20. 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? As it is a very optimistic electric range, they ask for real figures. Our customers obtain information mainly from the internet We need labelling, a video, the brochure and online information to sell the plug-in vehicles. The addition of more user friendly diagrams would be useful on the label. Customers mainly refer to the cost section of the label. The customers ask where the charging points are located. Do customers ask any other questions about plug in vehicles which aren't covered by the label

21. 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

22. THANK YOU FOR LISTENING FOR MORE INFORMATION Gloria.esposito@lowcvp.org.uk http://www.lowcvp.org.uk