In a promising turn for the global automotive market, Simon-Kucher’s 2024 Global Automotive Study reveals a resurgence in consumer confidence, with growing interest in electric vehicles (EVs), flexible ownership models, and advanced digital features. The survey, which polled over 7,000 consumers across 15 key markets, highlights how automotive preferences and expectations are adapting in a dynamic landscape marked by economic uncertainty.

Rising Confidence and Evolving Ownership Models

The study found that 75% of global consumers are optimistic about the automotive industry’s future, a nine-point increase from last year. While traditional car ownership remains a priority for 70% of respondents, there is an increasing shift toward leasing and subscription models, particularly in Western markets. These options allow consumers to access newer, higher-end vehicles with lower upfront costs, offering flexibility that resonates in an era where consumers are cautious about large expenditures.

In regions like Asia, enthusiasm is particularly high, with 83% of respondents expressing excitement about upcoming automotive advancements and brands. According to Martin Gehring, Senior Partner at Simon-Kucher, the appeal of leasing and subscription models is partly driven by the desire to access the latest vehicles without significant financial commitments. He added that this model is gaining traction among consumers who see cars not only as transportation but as symbols of achievement and personal reward.

Electric Vehicles: Steady Demand Despite Stabilizing Growth

While consumer interest in EVs remains robust, the study indicates that growth in the sector has reached a more balanced phase. Although 64% of respondents consider EVs the future, expectations of rapid growth have moderated as consumers anticipate a decade where both EVs and traditional powertrains coexist. Nonetheless, loyalty among EV owners is strong, with more than 90% planning to purchase another EV.

Regionally, Asian markets and younger generations express the highest enthusiasm for EV adoption, while Western countries, like the United States, face ongoing challenges such as limited charging infrastructure. Meanwhile, Norway and China lead the way with incentives and infrastructure support that facilitate EV adoption, indicating that policy and infrastructure investments play a critical role in fostering consumer interest.

The Shift to Digital: Consumer Preferences and Tech Integration

Digital innovation continues to transform the automotive shopping experience. The study found that while 79% of car-buying journeys start online, 75% of transactions still conclude in physical showrooms, underscoring the enduring importance of in-person interactions, especially for test drives. Additionally, Apple CarPlay and Android Auto have a clear advantage over manufacturer-owned systems, with 64% of respondents preferring these third-party platforms due to their familiarity, ease of use, and multi-brand compatibility.

Despite these preferences, automakers face a significant opportunity to integrate more sophisticated digital offerings. There is a growing consumer expectation for seamless digital interfaces within vehicles, with consumers prioritizing features that enhance navigation, connectivity, and user experience.

Sustainability and the Role of Brands in the Automotive Landscape

The study sheds light on evolving attitudes toward sustainability, with generational divides in how it is defined. Younger consumers view sustainability through the lens of electrification, while other groups place greater emphasis on extending vehicle life cycles and improving the environmental footprint of production processes. Over 40% of respondents believe that sustainable vehicle production, especially in powertrains and electronic components, is key to reducing the automotive industry’s environmental impact.

In terms of brand perception, the study also highlights the impact of national pride and generational attitudes. Japanese brands remain highly regarded in non-premium segments across many markets, though Chinese brands are making significant inroads, particularly among younger consumers.

Navigating the Future of Automotive

With increased interest in flexible ownership, a steady commitment to EVs, and strong demand for enhanced digital integration, the automotive industry is adapting to a transformed marketplace. As consumers place new emphasis on sustainability, convenience, and tech-driven experiences, manufacturers must balance these preferences to meet a diverse array of expectations and retain consumer loyalty in a rapidly changing landscape.