Global Survey: Internal Combustion Favored Over Battery Power
Among findings in the 2022 Global Automotive Consumer Study, U.S. consumers expect fully charged EVs to travel upwards of 500 miles, while a range of about 250 miles is acceptable to those in China, Japan and India.
While automakers advance toward an electrified future, consumers wary of electric vehicles’ limitations continue to be drawn toward internal-combustion-powered vehicles, a global survey by the Deloitte consultancy finds.
In the U.S. alone, 69% of consumers say they expect their next vehicle to have an ICE powertrain. And despite a growing interest in sustainability across the globe, more than half of U.S. consumers (53%) are unwilling to pay more than $500 for alternative engine technology.
Deloitte’s 2022 Global Automotive Consumer Study is based on responses from more than 26,000 consumers from 25 countries conducted between September and October.
The study explored issues affecting the global automotive sector including advanced technologies, sustainability, cost expectations on new vehicles, virtual purchasing and mobility services.
“While the automotive sector focuses on the road ahead and a return to its pre-pandemic pace of growth, consumer values remain aligned with familiarity and affordability,” Deloitte says in a news release summarizing the report’s findings.
That is underscored by general consumer resistance to paying for advanced technologies including autonomous driving, enhanced safety and connectivity.
Electrified Vehicles
Questioned about ICE and EV powertrains, consumers offered the following responses:
Mounting concerns about climate change and reducing emissions are consistently among the top two motivators for EV adoption among consumers in the U.S., Germany, Japan, Korea, India and Southeast Asia.
Consumer interest in battery-electric vehicles (BEVs) is highest in Korea (23%), China (17%) and Germany (15%), while Japanese consumers showed the highest preference toward hybrid- and plug-in hybrid-electric vehicles (HEV/PHEV) (48%) followed by Korea (35%).
Most EV intenders expect to charge their vehicles at home, particularly in Japan (76%), India (76%), the U.S. (75%) and Germany (70%). Demand for public charging is highest in Korea (38%) and Southeast Asia (29%).
Among those planning to charge their vehicles at home, two-thirds (66%) of Americans will rely on traditional power grids. Meanwhile, consumers in India, China and Southeast Asia plan to use both the regular grid and renewable power.
Driving range is the top concern about EVs among consumers in Germany (24%), China (22%) and the U.S. (20%). The lack of public charging infrastructure is top of mind in Asia (Southeast Asia at 28%, Korea at 26%, India at 23% and Japan at 19%).
U.S. consumers expect fully charged EVs to travel upwards of 500 miles (805 km), while a range of about 250 miles (403 km) is acceptable to those in China, Japan and India.
“The automotive industry continues to prove its resiliency as the pandemic impacted virtually every aspect of the business,” says Karen Bowman, vice chair-Deloitte and U.S. automotive leader.
“Despite these challenges, the industry remained remarkably committed to electric mobility. The growing interest among consumers to be more sustainable, along with rising fossil fuel costs, create a compelling opportunity for EV manufacturers,” she says.
“Global automakers should communicate this value proposition for consumers and strengthen the requisite charging infrastructure to further drive their success in the market and enable a truly electrified future.”
Vehicle Purchases
Consumers shopping for new vehicles prefer traditional, in-person experiences (pictured, below) over virtual platforms. However, virtual retailing is gaining favor for its convenience, speed and ease of use.
COVID-19 has significantly impacted car-buying decisions for consumers in India and Southeast Asia (64% and 63%, respectively), while more than two-thirds of U.S. consumers (69%) say the pandemic has not affected their vehicle purchase plans.
Consumers in India (45%) and Southeast Asia (31%) cite an increased desire in acquiring a vehicle to avoid public transportation, but only 14% of U.S. drivers reported the same.
In-person shopping is the preferred means of acquiring a vehicle, including for three-quarters (75%) of U.S. consumers. In-person experiences are an even greater priority in Southeast Asia (80%) and Germany (78%).
However, when purchasing virtually, consumers in most countries would prefer purchasing directly from an authorized dealer, including in the U.S. (48%). Japanese consumers, in contrast, would prefer to buy directly from the OEM (49%).
The survey also found shared mobility modes, including vehicle subscriptions and ride-hailing services, face a slow return to pre-pandemic levels as personal vehicle ownership maintains its position as the most desirable mode of transportation.
Convenience most often drives virtual vehicle sales for those in Korea (68%), Japan (41%), Germany (40%) and the U.S. (39%). Ease of use ranks highest for consumers in China (33%), as well as India (27%) and the U.S. (25%).
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