1. Car brands need to react to changing consumer habits

Car brands need to react to changing consumer habits

34% of consumers see mobility services as an alternative while 56% consider it complementary to buying a car.

By: | Published: May 19, 2017 3:35 AM
Capgemini study reveals the disruptive impact of ride-sharing services on car purchasing.

According to a new study of more than 8,000 consumers across eight key markets of Brazil, China, France, Germany, India, Italy, the UK and the US by Capgemini, a global leader in consulting, technology and outsourcing services, more than a third of car buyers (34%) see ride-sharing and tap-and-ride services as a genuine alternative to car ownership. While sales of new cars are continuing to grow significantly, the data echoes a shift in the strategy of leading manufacturers who are investing in car-sharing services through launches, acquisitions or partnerships, to adjust to the shifting attitudes of consumers.

The report, Beyond the car, also contains good news for the traditional automotive sales model in the face of explosive growth in car-sharing and tap-and-ride services. More than half of respondents see car-hailing and ride-sharing services such as Uber, Didi and BlaBlaCar as complementary to buying a new car (56%).

The percentage of those who see mobility services as complementary to buying a car increases when looking at younger car buyers aged 18-34 (64%) and those based in emerging markets China (77%) and India (63%). The significance of the investments by major manufacturers in car-sharing schemes is confirmed by the fact that two-thirds of consumers (66%) state that car brands are an important factor in their choice of car-sharing programme, indicating that these schemes could become an important part of the new car-sales cycle.

Kai Grambow, global head of Automotive at Capgemini, said: “We are experiencing a golden age of car sales, but it’s clear this won’t last forever in its current form. Car brands are realising they need to react to changing consumer habits to sustain growth. Becoming leaders in car-sharing and the broader mobility space will not just create new revenue streams for car manufacturers, but will also allow brands to raise awareness and establish a new kind of relationship with consumers as they decide on their next model to purchase.”

Other key findings show the broader impact of a rapid rise in technological capabilities and awareness among consumers on purchasing habits:

Autonomous driving features remain a significant selling point for consumers.

Cybersecurity has emerged as a key factor in car purchasing.

Consumer interest in buying cars from tech brands is increasing despite lack of substance.

Consumer trust of autonomous vehicles is split between established and new players.

Data privacy concerns are reducing as consumers embrace the connected-device model.

Demand for digital showrooms is challenging the traditional sales model.

(The full report is available here: https://ow.ly/bdHB30bMftE).

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