Car purchase: in China 89% want electric, in Europe only 52% Car purchase: in China 89% want electric, in Europe only 52%

What is the future of the automotive industry? That was the question posed by Simon-Kucher & Partners, a global management consultancy specializing in strategy, marketing, pricing and sales, which produced the report.Defining the next phase of the automotive industryto find out how motorists around the world (8,000 drivers from 20 different countries contributed to the study) approach new technologies, particularly with regard toelectrification and there data sharing. The results showed 5 key trends pay attention throughout 2023 and beyond, as well as highlight significant differences in preferences and choices based on country of origin. For example, in anticipation ofto buy a carIn China well the89% would consider electric, whereas in Europe only 50%.

CAR PURCHASING: MORE CAUTION FROM MOTORISTS

The first trend revealed by the Simon-Kucher study shows that motorists have adapted to market instability and the international crisis, and continue much more caution compared to buying a new car in the past. Today, potential car buyers pay more attention to the pricehoping to land a cheaper deal, and 3 in 5 say they could delay the purchase waiting for better times. In this regard, flexibility options are very popular with 58% (up from 52% last year) supporting the assessment lease And long term rental.

ELECTRIC CARS HAVE BECOME GENERAL

THE electric car they are becoming more and more popular but the interest in them changes radically depending on the country. Globally, 63% of people considering making a new purchase said they might consider electric vehicles, but that percentage drops to 51% in the United States and the United States. 52% in Europe, considering the 5 most industrialized countries (Germany, United Kingdom, France, Spain and Italy). On the contrary in China, 89% of motorists say they are ready to buy an electric cartestifying to a market strongly oriented towards the electrification of vehicles, with many models of BEV at particularly low cost (perhaps not all of great quality, but that is another matter).

The three main reasons for buy an electric car they concern the environmental impact, the relaxation of traffic and parking rules and the possibility of benefiting from tax incentives and advantages. The three main obstacles relate to the purchase price, insufficient autonomy and the lack of public charging infrastructure.

Note, out of curiosity, that if Chinese motorists consider an average range of 427km with a single charge, in the United States and Europe are respectively more demanding and more demanding 569 and 544km.

PREFERENCE FOR LOCAL BRANDS

German brands still dominate the global automotive market with 75% of buyers who say they prefer machines made in Germany. But drivers in automotive-advanced countries like France, Italy, the United States, South Korea and Japan prefer brands from their own country. This trend is beginning to assert itself even in countries that are less known in this regard, as in the case of Türkiye where locally produced cars are depopulating TOGG o Automotive Joint Venture Group in Türkiye. National pride and recent technological improvements are also driving Chinese electric car sales in Chinaa market once dominated by Germany.

DIRECT AND DIGITAL CAR SALES

Regarding the method of selling cars, the younger generations are more oriented towards buying online, while the so-called “boomers” still prefer the dealership. Here are the exact percentages of those who prefer to buy a car directly digitally, released with the report:

• Generation Z (born after 1997): 55%
• Generation Y (born between 1981 and 1996): 53%
• Generation X (born between 1965 and 1980): 36%
• Boomers (born between 1946 and 1964): 18%.

However, keep it consolidated stages of the normal sales journey it is considered essential to meet the expectations of customers of all generations. And because face-to-face negotiations offer the prospect of getting better deals, the vast majority of customers (74%) want to continue this practice. However, it is essential that retailers understand the importance of road testsnow requested by 66% of customers, as an essential condition for closing the deal.

NEW OPPORTUNITIES FOR DATA SHARING, BaaS AND V2G

The automotive industry explores new revenue models leverage services such as data sharing, Battery-as-a-Service (BaaS), and Vehicle-to-Grid (V2G).

4 motorists out of 5 are generally open to the idea of share vehicle data (such as fuel consumption or battery level) and 3 out of 4 are even willing to share personal data such as location, routes and driving style, which manufacturers can use to create new features or improve existing ones.

Service BaaSa kind of battery leasing, enables cheaper purchase prices on electric vehicles, because car batteries are essentially “rented” in exchange for a monthly fee. Even this solution meets with the favor of the youngest customers and the skepticism of the older ones.

THE V2G works by allowing electric cars to return electricity to the grid, thus allowing them to be used as generators. Only 48% of drivers are aware of this technology which could solve problems linked to peaks in electricity consumption, but 73-74% still say they are interested in exploiting it considering it on the whole advantageous in many ways. However, more than 50% would not trust energy companies to manage their vehicle’s battery.