The car remains the preferred mode of transport for consumers in Germany, the US and China, the world’s most important automotive markets, although public transport, cycling and walking are on the rise, according to the report Digital Auto 2023 – What Consumers Really Want, by strategy&, global strategy department of PwC. At the same time, the interest shown during the pandemic in using mobility platforms (sharing/hailing) remains low.

When it comes to buying a car, there is a growing desire to buy a used car, especially in Germany and the US, while China prefers new cars. Meanwhile, the gasoline engine is the most popular engine type in the US and Germany, followed by PHEVs (plug-in hybrid vehicles) and BEVs (full electric vehicles) in third place. Chinese consumers have the opposite preferences, with BEVs being the most popular, ahead of hybrids and gasoline engines.

“With high inflation around the world, which has not spared the automobile market, it is not surprising that we see a focus on used cars or public transport. In addition, many countries have announced the reduction or cancellation of incentives for the purchase of electric vehicles. Already in 2021, PwC’s analyzes showed the formation of the used electric car market, with 15% of electric car owners then saying that they bought their car used,” said Daniel Angel, partner and head of the automotive industry at PwC Romania.

The car subscription model has started to attract interest

Car subscription is an alternative to leasing and renting that has gained popularity especially in China but has also started to grow in Germany and the US, the report said. Essentially, a subscription allows customers to drive new cars, change them periodically, without committing to contracts or dealing with aspects such as maintenance and insurance that companies deal with.

Alternative ownership models offer potential profits for automakers if the asset lifecycle is well managed.

The strategy estimates that subscriptions could grow to 2-4 million units by 2035 in Europe with a margin of 10-15%. The cost-effectiveness assessment was made for a mid-range passenger car costing €53,500.

Safety and navigation, the most popular features

When it comes to connectivity services, consumers want basic services first, prioritizing security and navigation. The functions of assisted driving (autopilot) or the pilot for parking assistance cause much greater interest than in the previous year’s survey.

Also, the function of mirroring the phone on the screen in the car is gaining more and more importance.

When it comes to reducing CO2 emissions for their own transport, consumers in each country have priorities: Germany prefers to walk more, the US is switching to BEVs, and China is using public transport.

The eleventh annual Digital Auto Report is a global opinion survey focused on the US, EU and China, which consists of a quantitative market forecast to 2035 based on regional structural studies and interviews with key industry executives from OEMs and suppliers. with leading scientists and industry analysts.

Article supported by PwC Romania