Transform automotive trends into opportunity.

Insights from our Global Automotive Study 2024

As the pandemic recedes, consumer preferences are being reshaped by a combination of economic uncertainties and technological innovations.

For the automotive industry, understanding what motivates consumers is paramount. Is the consumer confidence on the rise? How are their purchasing preferences evolving? Will the technological innovations reshape consumer expectations?

We uncover six key automotive trends influencing your consumers’ decision-making and identify areas for your business to act on.

Simon-Kucher's 2024 Global Automotive Study reveals to you what matters to 7,160 car buyers across 15 countries.

1.

Consumer optimism is rising as future car buyers become more positive.

1%

of respondents still see car ownership as a valuable asset - a form of self-reward.

Western consumers believe leasing and subscription models offer cost savings and access to high-end vehicles.

75% of global respondents – rising to 83% in Asia – are optimistic about the automotive market’s future.

Consumers are regaining confidence, with purchasing power showing a rebound (+9pp). They also show a greater willingness to make new car purchases (+4pp).

2.

EV excitement has now stabilized with consumers expecting coexistence.

EVs are seen as the future by only 60% of consumers.

Most car buyers across generations show equal interest in both gasoline and electrified engines for their next purchase.

Customers are optimistic about the future of EV. At the same time, they are now more open-minded about engine technology. Short-term challenges such as lack of charging infrastructure persist.

1%

of current EV drivers remain loyal to the electric powertrain: Loyalty for their choice of engine type remains high.

50/50

A plateauing EV trend suggests a focus on long-term solutions.

3.

Car buyers have clear (and differentiated) customer journey preferences.

Car dealerships maintain an advantage over online channels by offering essential services like maintenance and test drives.

Transparent prices, easy buying process, and good service are key to improving customer satisfaction.

1%

68% consider test drives a must, giving car dealerships an advantage over online channels.

1%

Nearly 80% of customers initiate their purchase journey online.

1%

75% still prefer to close deals offline – a trend that remains stable for their future purchase intentions.

4.

Inflation prompts cautious spending as value takes the lead.

Importance of price-related criteria among all purchase drivers

48%

50%

36%

36%

Value-related purchase criteria remain in the lead, but consumers are increasingly looking for a good deal now that the vehicle supply is back to normal.

1%

expect to negotiate prices to secure a better deal.

In relative terms, price-related criteria play a comparable role in most global markets.

The lowest ranking countries are India and China.

Australia is the most price-driven country, closely followed by Norway.

Vehicle price is the single most important purchase criterion across all markets. 

Value holds sway even though price remains a top concern.

5.

When it comes to in-car technology, familiarity wins over reinventing the wheel.

Apple/Android vs. built-in? Customers have made their preferences clear.

More than 50% of consumers prefer Apple CarPlay or Android Auto over manufacturer systems.

Requirements for switching back to manufacturer-owned systems are high for Apple CarPlay/Android Auto users. Enhancements in navigation and overall user experience could attract users back to manufacturer-owned systems.

Apple CarPlay or Android Auto

Easier access to known applications

Manufacturer-owned system

Greater reliability and compatibility

Nearly three-quarters of respondents view digital services as a crucial factor in their next vehicle.

Globally, EV buyers (85%) consider in-car technology way more important than ICE drivers (72%).

85%

72%

6.

Brand origin plays a key role in customers' purchasing choices and perception.

Top consideration or competition-induced risk of disappearing? Customers speak up on the automotive brands’ fate.

Daihatsu (24%)

Fiat (17%)

Vauxhall (17%)

Purchase consideration for Chinese brands rises by 6pp from last year, with a 39% average rate and highest acceptance among younger Chinese car buyers.

Globally, Millennials (65%) and Gen Z (61%) are most open towards Chinese brands compared to Gen X (51%) and Baby Boomers (38%).   

1%

consumers believe that some of the established car brands will disappear due to competition. Globally, respondents perceive these brands as the brands most at risk of disappearing:

Millennials

Gen Z

Gen X

Baby Boomers

Thriving or at risk? Discover the future of automotive brands.  

Coastal and oceanic landforms, Water resources, Urban design, Azure, Beach, Spit

Embrace value-conscious consumers.

While price remains a top concern, value holds sway. Focus on features and benefits that justify the total cost of ownership, catering to budget-conscious buyers seeking the most bang for their buck.

Prepare for the plateauing EV trend.

Interest in electric vehicles remains strong, particularly among younger generations. However, a plateauing trend suggests a focus on long-term solutions. Highlight sustainability efforts and infrastructure improvements to address range anxiety and concerns about the future of EVs.

Adapt to the evolving brand situation.

Local heroes, established names, and Chinese newcomers all vie for consumer attention. Leverage brand heritage while acknowledging the appeal of emerging players. Emphasize quality and reliability to address any brand-related concerns.

Personalize the buying journey.

Analyse consumer preferences and tailor marketing, sales, and after-sales services accordingly. Provide personalized recommendations and transparent pricing to enhance customer satisfaction.

Create a seamless user experience.

Prioritize Apple CarPlay/Android Auto integration or offer comparable features in in-car systems to cater to younger customers. Focus on user experience enhancements and data privacy.

What actions must automotive businesses take to succeed?

This year’s core automotive trends highlight potential growth opportunities for car manufacturers, dealerships, and related stakeholders for long-term growth.

Automotive: See more

Racing towards a better kind of growth for companies, consumers and communities.

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