Shifting Gears: What Car Buyers Really Want in 2025Shifting Gears: What Car Buyers Really Want in 2025

Deloitte’s latest study highlights key trends shaping the automotive market and how dealers can best respond to the challenges.

Nancy Dunham, Principal Analyst/Retail

February 4, 2025

3 Min Read
Consumers continue to value dealerships.Getty Images

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As dealers endure what WardsAuto calls the rollercoaster ride of automotive sales, many retailers are seeking answers to how they can more effectively entice consumers to visit their showrooms and buy.

Speakers and vendors at the recent National Automobile Dealers Assn. show in New Orleans and the CES 2025 exhibition in Las Vegas offered products and strategies to help dealers with that. But the question remains, “What exactly do shoppers really want?”

Enter Deloitte’s 13th annual report, the “2025 Global Automotive Consumer Study,” based on a survey of more than 31,000 consumers from 30 countries conducted between October and November 2024.

“The central role that dealers play in cultivating and maintaining strong relationships with existing customers will become increasingly important as market demand appears to be flattening off in the second half of the decade,” Ryan Robinson, automotive research leader at Deloitte, tells WardsAuto. “As the level of competition intensifies and half of current owners consider switching vehicle brands during their next purchase, the significance of dealer engagement becomes even more critical.”

But what should dealers focus on? Consider these insights presented by the Deloitte study:

Trend 1: BEV Interest Remains Muted in Most Markets

Interest in hybrids and range-extender technology (vehicles with no external charging plugs) is growing.

The study shows U.S. consumers intending to purchase hybrid vehicles is up five percentage points year-over-year, to 26%. Analysts say those consumers seek vehicles that are the “best of both worlds” (meaning a little bit gasoline-powered and a little bit electric vehicle) to reduce fuel costs and lower emissions.

But here’s the kicker: Although they want to maximize fuel economy and do what’s best for the environment, they don’t want to rely on a charging infrastructure to do so, meaning battery-electric vehicle interest remains tepid.

What that means for dealers:

Fear not, say analysts. Consumer interest favoring conventional hybrids doesn’t mean shoppers can’t be persuaded to purchase battery-electric vehicles. Although new-vehicle buyers may prefer not to rely on public charging infrastructure, most BEV buyers don’t believe they will have to. The majority (79%) of U.S. shoppers considering BEVs plan to charge their vehicles at home, the Deloitte survey shows.

Trend 2: Intended Vehicle Brand Defection Is on the Rise Worldwide

Brand loyalty may not be dead but it’s moving toward life support.

Deloitte analysts say the percentage of surveyed U.S. consumers intending to switch brands the next time they shop for vehicles increased on a year-over-year basis (from 34% in 2024 to 46% in 2025) across several markets.

What that means for dealers:

Commitment to building strong customer relationships is increasingly important.

That doesn’t just mean reaching out through marketing but also teaching staff to actively listen to consumer needs and consistently stand as an expert on the brand and models. It’s vital to explain the highest-quality benefits and features for brands and models.

Trend 3: Significant Interest Shown in Purchasing Directly From Automakers

It’s no secret that dealer networks continue to fight direct-to-consumer auto sales by Tesla, Rivian and Scout. Manufacturers and dealers cite the federal franchise laws that regulate franchisor and franchisee relationships and transparency in their battle to keep the status quo.

But it’s anybody’s guess if those laws will change to suit rising consumer preferences.

Deloitte’s study shows growing interest (46% in 2025, up from 34% in 2024) by U.S. consumers who want to purchase vehicles directly from manufacturers via an online process.

What this means for dealers:

It’s vital for dealers to continue to form consultative relationships with consumers. As WardsAuto reports, a recent Cox Automotive survey shows 79% of customers had positive experiences as dealers.

Adding consumer-friendly technology and personalization will enhance the experience.

For more information about the study or to download the report, click on this link.

About the Author

Nancy Dunham

Principal Analyst/Retail, WardsAuto

Nancy Dunham has written and edited for an array of dealer-centric automotive publications. Contact her at [email protected].

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