Global Automotive Study 2024: Consumer Confidence Rebounds as Demand for Leasing, EVs, and Digital Features Accelerates
Simon-Kucher’s global automotive study highlights increased optimism, with consumers showing stronger interest in flexible ownership models, electric vehicles, and advanced digital technologies.
[London, 29 October 2024] – The Global Automotive Study 2024 from Simon-Kucher, a leading global growth consultancy, paints an optimistic picture for the automotive industry, despite a backdrop of economic uncertainty. The study, which surveyed over 7,000 respondents across key markets, highlights a renewed consumer confidence, with a nine percentage point increase in those who feel positive about their purchasing power. However, this optimism is coupled with a cautious approach to spending.
Martin Gehring, Senior Partner at Simon-Kucher and head of the company's Global Automotive Practice, explains: “We’re seeing a dynamic market brimming with opportunity. While traditional car ownership continues to hold strong appeal, consumers are increasingly embracing alternative models like leasing and subscriptions, allowing them to access the latest vehicles with greater flexibility and lower upfront costs. Enthusiasm for electric vehicles remains robust, and rather than slowing, we’re witnessing a balanced evolution where both EVs and traditional powertrains will thrive together in the coming years.”
Key Findings:
- Renewed Consumer Confidence: 75 percent of consumers express optimism about the future of the automotive market, with just a nine percentage point drop in those who expect their purchasing power to decrease.
- Car Ownership Still Valued: Approximately 70 percent of respondents continue to see car ownership as important, with many considering it a form of self-reward. This sentiment is highest in India (90 percent) and China (85 percent) and lowest in France (46 percent) and Germany and Norway (53 percent).
- Leasing and Subscription on the Rise: Consumers are increasingly drawn to leasing and subscription models for their next vehicle, driven by cost efficiency and the ability to access higher-end cars.
- Shifting EV Sentiment: 64 percent of respondents still view electric vehicles as the future, but rapid growth is no longer expected. Current EV owners are showing remarkable loyalty, with more than 90 percent intending to purchase another EV.
- Consumer Journey Preferences: 79 percent of vehicle purchase journeys start online, but 75 percent of deals are still finalized in physical showrooms. Test drives remain crucial, with over half of respondents insisting on them before making a purchase. Consumers in India and China lead the pack when it comes to satisfaction with the purchase process, while Norway and Australia bring up the rear.
- Digital Integration Preferences: 64 percent of customers prefer Apple CarPlay/Android Auto over manufacturer systems due to ease of access, better compatibility, and familiar applications, signaling a need for OEMs to rethink their digital strategies. Across segments, Asian respondents and EV drivers place the highest value in digital services.
- Brand Perceptions Evolving: In the non-premium segment, particularly Japanese brands dominate most of the markets' top considerations, but Chinese brands are gaining traction, especially among younger consumers. National pride plays a significant role, with local brands ranking among the top three in most regions.
- Sustainability Standards Differ Across Generations: Younger generations define sustainability through electric mobility, while the average consumer focuses more on extending vehicle lifecycles. More than 40 percent of respondents believe greener vehicles depend on more sustainable production of electrical components and powertrains.
“The automotive industry is at a critical juncture as it navigates shifting consumer expectations and evolving market dynamics,” said author of the study, Matthias Riemer, a Partner at Simon-Kucher and global automotive expert. “To stay competitive in this complex environment, manufacturers and stakeholders must thoroughly understand consumer preferences and adapt accordingly.”
Complete study findings are available upon request.
*About the Study: The Global Automotive Study 2024 was conducted in July 2024 by Simon-Kucher. The study surveyed over 7,100 consumers across 15 countries (Australia, China, France, Germany, India, Italy, Japan, Norway, Saudi Arabia, South Korea, Spain, Turkey, UAE, United Kingdom, United States), including representative quotas for age, gender, living area, & income level.
Janine McCormac
Janine.mccormac@simon-kucher.com
About Simon-Kucher
Simon-Kucher is a global consultancy with more than 2,000 employees in 31 countries. Our sole focus is on unlocking better growth that drives measurable revenue and profit for our clients. We achieve this by optimizing every lever of their commercial strategy – product, price, innovation, marketing, and sales – based on deep insights into what customers want and value. With nearly 40 years of experience in monetization topics of all kinds, we are regarded as the world’s leading pricing and growth specialist.