Deloitte in its most recent “Global Automotive Consumer Study 2024”, reveals a variety of relevant aspects in the sector, such as consumer interest in electric vehicles, perceptions about brands, the adoption of connected technology and the growing interest in making use of the vehicle subscription model, which allows a wide availability of cars throughout each year and the opportunity to try a variety of extra functions according to the customer’s tastes.
This annual report takes a detailed look at the critical technologies and issues that will have the greatest impact on this automotive industry in the coming year.
In this year’s study, four key trends emerged:
• High interest rates and high public prices may be causing consumer interest in electric vehicles to soften.
• A significant number of consumers may be thinking about changing vehicle brands.
• Interest in connectivity features may not fully translate into revenue and profits.
• Younger consumers are interested in vehicle subscriptions, as an increasing number of them wonder if they will need to own a vehicle in the future.
Vehicle electrification
Consumer intent to move away from Internal Combustion Engine (ICE) technology is proving to be a significant near-term challenge as uncertain global economic conditions and consumer concerns regarding to the adoption of electric vehicles.
Range anxiety, charging time and infrastructure are factors that keep consumers worried.
In the United States and Southeast Asia, preferences for electric vehicles reach 67% and 52%, respectively, but in markets such as Japan and China they remain low at 34% and 33%, respectively.
Future intentions in vehicles
Price tops the list of factors driving consumers’ choice of vehicle brand in developed markets, including Germany, Japan and the United States; while vehicle performance (China and South Korea) and product quality (India) are priorities for consumers in other global markets.
Depending on the market, what consumers surveyed care most about when thinking about their next vehicle brand is price, product quality and performance.
On the contrary, aspects related to the image of the brand, allies of the automotive company and availability of batteries are the least highlighted aspects.
Connectivity
Among those interested in connected vehicles, there is a relatively high level of interest in features that provide updates on maintenance, traffic/road safety, and suggestions for safer routes. However, the willingness to pay more for connected technologies remains low in developed markets.
Consumers in developing markets such as India (71%), China (60%) and Southeast Asia (55%) are willing to pay more for connected vehicle services, compared to respondents in countries such as the United States ( 25%), Japan (23%) and Germany (20%).
Vehicle subscriptions
Against a backdrop of uncertain economic conditions that raise concerns about financial capability, a significant number of young consumers are, to some extent, interested in forgoing vehicle ownership altogether in favor of a subscription model. For example, in In India, 67% of respondents between 18 and 35 years old would stop owning their own vehicle to opt for a subscription model.
Consumers in the China market are in second place, with 48% preference, and Southeast Asia in third place, with 46%.
