64% of Consumers Believe Electric Vehicles are the Future

Although the automotive sector is experiencing a period of uncertainty and slowing sales, consumers remain optimistic about the future. 75% of them are optimistic about the future of the automotive market, with only a 9% decline among those expecting a decrease in their purchasing power.

This is one of the conclusions of the 2024 Global Automotive Study by Simon-Kucher, conducted with a sample of over 7,000 people from major markets.

Regarding car ownership, approximately 70% of respondents still consider owning a car important, viewing it as a form of personal reward.

This sentiment is strongest in India (90%) and China (85%), and weakest in France (46%), Germany, and Norway (53%). Spain falls in the middle, with 63% of consumers viewing car ownership as a personal reward. Meanwhile, consumers are increasingly attracted to leasing and subscription models for their next vehicle, driven by cost-effectiveness and the ability to access higher-end cars.

On electric vehicles, 64% of respondents still consider these vehicles the future, though rapid growth is no longer expected. Current electric vehicle (EV) owners show notable loyalty: over 90% intend to purchase another EV.

According to Martin Gehring, partner and head of Global Automotive Practice at Simon-Kucher, "We see a dynamic market full of opportunities. While traditional car ownership remains very attractive, consumers are increasingly adopting alternative models like leasing and subscriptions, allowing them to access the latest vehicle models with greater flexibility and lower upfront costs. Enthusiasm for electric vehicles remains strong, and rather than slowing down, we are seeing a balanced evolution where both EVs and traditional propulsion systems will thrive together in the coming years."

"The automotive industry is at a critical juncture amid changing consumer expectations and evolving market dynamics," notes Ignacio Gómez Carrión, partner and managing director of Simon-Kucher in Spain and Portugal, and a global automotive expert. "To remain competitive in this complex environment, manufacturers and stakeholders must thoroughly understand consumer preferences and adapt accordingly."

When it comes to making a purchase decision, 79% opt to conduct searches online, but 75% of transactions are completed at physical dealerships. Test drives remain crucial, as more than half of respondents insist on them before making a purchase. The most valued aspects by nearly all Spanish consumers (90%) during car purchases are price transparency, good sales service, and a straightforward buying process. Consumers in India and China lead in satisfaction with the buying process, while Norway and Australia lag behind.

Apple CarPlay/Android Auto are the preferred systems for 64% of respondents due to ease of access, better compatibility, and familiarity with applications, indicating the need for original equipment manufacturers to rethink their digital strategies. In Spain, 63% prefer Apple Car or Android Auto systems over manufacturer systems (17%). Across all segments, Asian respondents and electric vehicle drivers place the highest value on digital services.

In the non-premium segment, Japanese brands dominate most of the major market brands, but Chinese brands are gaining ground, especially among younger consumers. National pride plays a significant role, with local brands ranking among the top three in most regions, except in Spain where the top three valued brands are Japanese Toyota, followed by French Renault and American Ford, although the consideration of Chinese brands has risen to 66%.

Finally, regarding sustainability, younger generations define sustainability through electric mobility, while the average consumer focuses more on extending the vehicle lifecycle. Over 40% of respondents believe that greener vehicles depend on more sustainable production of electric components and engines.