Policies should prioritize the poor and vulnerable as the economy is expected to recover in 2022

As global automakers continue to invest in the production of electrified vehicles (EVs), internal combustion engine (ICE) powertrains dominate future U.S. intentions, with 69 percent of U.S. consumers looking to save the technology for their next day. vehicle.

Despite a growing interest in sustainability globally, more than half (53%) of US consumers are unwilling to pay more than US $ 500 for alternative engine solutions.

Virtual sales continue to show promise for their convenience and ease of use; however, 75% of US consumers would prefer an in-person experience for their next vehicle purchase.

Shared mobility services like carpooling and carpooling have been slow to return to pre-pandemic levels; 76% of Americans prefer their personal vehicles to other modes of transportation.

Why it matters

As the auto industry focuses on the road ahead and returning to its pre-pandemic growth rate, consumer values ​​remain aligned with familiarity and affordability. For 12 years, Deloitte has explored automotive consumption trends impacting the rapidly evolving global mobility ecosystem. This year’s report, “Global Automotive Consumers Study 2022, ”Explores a variety of issues impacting the global automotive industry, including advanced technology development, sustainability, cost expectations of new vehicles, virtual shopping experiences and mobility services. The report is based on a survey of more than 26,000 consumers in 25 countries between September and October 2021.

Mapping the future of electric vehicles

As global automakers seek to deliver on their promises of an electrified future, consumer interest in adopting more sustainable powertrains is driven by lower fuel costs, climate concerns, and better driving experiences. . However, the limitations of electric vehicles continue to draw many drivers to familiar internal combustion engine (ICE) vehicles. At the same time, consumers’ willingness to pay for advanced technologies remains limited.

Despite growing interest in sustainability, a majority of consumers are still unwilling to pay more than US $ 500 for advanced technologies, including alternative powertrains, including 53% in the US. Additionally, consumers are unwilling to pay for other advanced features, including autonomous driving, improved safety and connectivity.

As a result, ICE vehicles continue to dominate future vehicle purchase intentions in the United States (69%). Among alternative powertrains, consumer interest in battery-electric vehicles (BEVs) is highest in the Republic of Korea (23%), China (17%) and Germany (15%), while Japanese consumers showed the strongest preference for hybrid electric vehicles (HEV / PHEV) (48%) followed by the Republic of Korea (35%).

However, growing concerns about climate change and reducing emissions are consistently among the top two motivators for electric vehicle adoption among global consumers in the United States, Germany, Japan, Republic of Korea, in India and Southeast Asia.

The majority of EV buyers plan to charge their vehicle at home, especially in Japan (76%), India (76%), the United States (75%) and Germany (70%). Demand for public charging is highest in the Republic of Korea (38%) and Southeast Asia (29%).

Among those who plan to charge their vehicles at home, two-thirds (66%) of Americans will take advantage of traditional power grids. Meanwhile, consumers in India, China and Southeast Asia plan to use both mainstream grid and renewable energy.

Range is the main concern regarding electric vehicles among consumers in Germany (24%), China (22%) and the United States (20%), while the lack of public charging infrastructure is a concern major in Asia (Southeast Asia at 28%, Republic of Korea at 26%, India at 23% and Japan at 19%).

Consumers in the United States expect fully charged EVs to travel more than 500 miles, while those in China, Japan and India are content with a range of around 250 miles.

The way to go when buying vehicles

Consumers who buy new vehicles prefer traditional in-person experiences to virtual platforms. However, virtual retailing is gaining ground for its convenience, speed and ease of use.

COVID-19 has had a significant impact on car buying decisions for consumers in India and Southeast Asia (64% and 63%, respectively). Conversely, more than two-thirds of American consumers (69%) say the pandemic has not affected their vehicle purchasing plans.

Consumers in India (45%) and Southeast Asia (31%) mentioned an increased desire to purchase a vehicle to avoid public transport; only 14% of American drivers said the same.

For consumers around the world, in-person purchases are the preferred vehicle for purchasing a vehicle, including three-quarters (75%) of US consumers. In-person experiences are an even higher priority in Southeast Asia (80%) and Germany (78%).

However, when shopping virtually, consumers in most countries would prefer to buy direct from an authorized reseller, including the United States (48%). Japanese consumers, on the other hand, would prefer to buy directly from the OEM (49%).

Sales of virtual vehicles are most often driven by convenience for people in the Republic of Korea (68%), Japan (41%), Germany (40%) and the United States (39%). Ease of use is highest for consumers in China (33%), as well as India (27%) and the United States (25%).

Personal mobility remains king

Shared mobility offerings, including vehicle subscriptions and ride-sharing services, face a slow return to pre-pandemic levels as personal vehicle ownership maintains its position as the most desirable mode of transportation .

More than three-quarters of Americans (76%) indicate that personal vehicles are their primary form of transportation. However, public transport has a significant share among consumers in the Republic of Korea (31%) and Japan (27%).

Vehicle subscription services are more popular in global markets, but still gain interest in the United States About a third of American consumers are interested in vehicle subscription services to access different models of cars, makes of vehicles and used vehicles (32% each).

Convenience, flexibility to swap vehicles, and vehicle availability are the primary factors for engaging vehicle subscription service in the United States.

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