Although the long-term trend remains strong for electric vehicles (EVs) to enter the mainstream marketplace, Deloitte’s recent study found a shifting set of needs by today’s consumers, moving from the new and exciting toward the familiar and affordable.
Deloitte’s annual report on the global automotive ecosystem, the “Global Automotive Consumer Study,” gathered answers from 24,000 consumers across 23 countries. This year it found that in order for internal combustion engines to fade out in favor of electric powertrains, consumers are seeking strong assurances about affordability, charging infrastructure, and mileage. These requirements are reflected in the 15% year to year decrease of the number of American consumers who would consider alternative engine solutions for their next purchase.
With financial concerns at the forefront during the pandemic, consumers are not only reconsidering what kind of vehicle to buy, but also when they will be buying it. Overall 10% of U.S. consumers deferred taking on automotive payments in 2020, but consumers between the ages of 18 and 34 that rises to 23%.
In addition, 74% of U.S. consumers plan on purchasing a traditional internal combustion engine (ICE) as their next vehicle—a key indicator of how much more of the market remains to be captured by EV manufacturers. Providing the right assurances to this large segment will be a key challenge as well as making the manufacture of EVs profitable.
“The global automotive industry, like many others, has been profoundly impacted by the pandemic,” said Dr. Harald Proff, a Deloitte Global automotive leader and partner, Deloitte Germany. “That said, the momentum toward a more connected vehicle future remains bright and full of promise. Ever stricter vehicle emissions requirements in many markets around the world are also pushing the goal of electric mobility forward”.
Read: Restarting Automotive Sector Post- Pandemic is Focus of Deloitte Study
