Shifting Gears: COVID-19 and the Rapidly Changing Automotive Consumer

Nearly half of consumers (46%) worldwide are considering buying a car in the next 12 months, up from 35% in April 2020. This reflects a continued shift in consumer preferences for personal mobility, as owning a car is now seen as a safeguard against infection risks and the spread of the pandemic.

The spread of the epidemic and lockdown measures have prevented consumers from going to public places or sharing transportation. 87% of consumers worldwide said that unless the epidemic has been completely eliminated, the safety and health of themselves and their families are best guaranteed by personal vehicles. 81% of consumers said that they will avoid using ride-sharing services for health and safety reasons, compared to only 42% in April 2020.

At the same time, 78% of consumers would choose to drive their personal vehicles rather than take public transportation. Nearly 72% of consumers said they value the continued use of private cars more than before the pandemic, and this shift is likely to eventually translate into car sales.

Purchase intentions are growing in almost all markets around the world, driven by a combination of low-cost car loans, government incentive programs for electric vehicles, and pent-up car demand following the economic recovery, which is now being overwritten by the desire to avoid public transportation and share transportation.

Young consumers (18-35 years old) are leading this trend, with 59% considering buying a car in the next 12 months, compared to 46% of all age groups. However, more than half (56%) of those considering buying a car have lowered their expectations since last year, preferring more practicality and functionality over more idealistic values.

Competition in the small and entry-level car market is likely to heat up as automakers push to update existing product lines to meet consumer interest. Conversely, Capgemini research found that a small but significant group of buyers (21%) are willing to pay more for premium features such as extra space, connected services and voice control.

Targeting this segment of high-end consumers can generate higher profits and help offset some of the profit pressure in the entry-level segment, according to the research report.

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