U.S. Global Automotive Consumer Study 2019 - Deloitte

2019 Deloitte GlobalAutomotive Consumer StudyAdvanced vehicle technologiesand multimodal transportationGlobal Focus Countries

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationTo learn more about the GlobalAutomotive Consumer Study, visitwww.deloitte.com/autoconsumers2

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationFor a decade, Deloitte has been exploring consumers’ changingautomotive expectations and the evolving mobility ecosystem.Key insights from our Global Automotive Consumer Study over the years:2009Vehicle safety ranksas the top priorityfor consumers2010Overall value ranks asthe primary factor whenevaluating brands2011“Cockpit technology” andthe shopping experiencelead differentiators2012Interest in hybrids driven bycost and convenience, whileinterest in connectivitycenters on safety201820172014Consumers in many globalmarkets continue tomove away from internalcombustion engines (ICE)Interest in full autonomygrows, but consumers wanta track record of safetyShared mobility emergesas an alternative toowning a vehicleThe Global Automotive Consumer Study helps informDeloitte’s work and insights into the evolution of mobility,smart cities, connectivity, transportation, and other changestransforming the movement of people and goods.3

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportation2019 Deloitte GlobalAutomotive Consumer StudyFrom September to October 2018, Deloitte surveyed more than25,000 consumers in 20 countries to explore opinions regarding avariety of critical issues impacting the automotive sector, including thedevelopment of advanced technologies. The overall goal of this annualstudy is to answer important questions that can help companiesprioritize and better position their business strategies and investments.Key insightsConsumers “pump thebrakes” on interest in AVsElectric vehicles finallyshowing potential to scaleConsumers may be reluctantto pay for connectivityMobility revolution facessignificant headwindsAs the technology gets evercloser to scalable, real-worldapplication, consumers arequestioning if autonomousvehicles (AVs) are safe, whichis causing some people totake a more cautiousapproach to the idea.Electric vehicle (EV) demandis growing in Asia Pacific (AP)and the European Union(EU) due to supportiveenvironmental policies,big-brand bets, and shiftingconsumer attitudes. Butlow fuel prices in NorthAmerica (NA) are keepingconsumers away.Consumer opinions are mixedwhile interest in time-savingfeatures is high, but significantconcerns remain over privacyand data security. Originalequipment manufacturers(OEMs) also face an uphill battlegetting people to pay for it.Overall consumer behavioris proving difficult to change.A shared mobility futuremay hinge on younger peoplethat have fully embracedthe precepts of a digitallyenhanced existence.4

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationConsumers “pump the brakes”on interest in AVsConsumer perception regarding the safety of self-driving vehicleshas stalled in the last year as reports of accidents involving AVs have had a significant impacton consumers’ view of the technology.Percentage of consumers who agree that AVs will not be safePercentage of consumers who feel that media reportsof accidents involving AVs have made them more cautiousof the technology50%47%US74%50%57%Japan79%49%54%Rep. of %64%72%62%2017Note: Percentage of respondents who strongly agreed or agreed havebeen added together.Rep. of Korea68%US65%India64%China64%GermanyJapan56%50%Q3: To what extent do you agree that fully self-driving cars will not be safe?Note: Percentage of respondents who strongly agreed or agreedhave been added together.Sample size: Germany 1,733 [2019], 1,705 [2018], 1,574 [2017]; US 1,720 [2019],1,730 [2018], 1,634 [2017]; China 1,735 [2019], 1,724 [2018], 1,633 [2017];India 1,725 [2019], 1,728 [2018], 1,686 [2017]; Japan 1,717 [2019], 1,680 [2018],1,656 [2017]; Republic of Korea 1,715 [2019], 1,722 [2018], 1,633 [2017]Sample size: Germany 1,694; US 1,680; China 1,722; India 1,705; Japan 1,691;Republic of Korea 1,689Q3: To what extent do you agree that media reports of accidents involvingautonomous vehicles make you cautious of the technology?5

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationA majority of consumers want their governments to exert a significantamount of control over the development and use of AVs.Level of government involvement desired regarding the development and use of AVsJapanUSGermanyIndia56%31%9% 4%8%53%38%6% 3%27%6%59%29%7% 4%60%1% 1%36%Rep. ofKorea62%2% 1%20%ChinaDon’t knowNo oversight77%Some oversightSignificant oversightQ7: To what extent do you think government should be involved in the development and use of AVs by providing oversight and standards?Sample size: Germany 1,773; US 1,750; China 1,760; India 1,755; Japan 1,770; Republic of Korea 1,7316

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationConsumer trust in manufacturers to bring AV technology tomarket continues to erode across most core global auto markets.Percentage of consumers that would most trust traditional automakers to bring fullyautonomous technology to market76% 76%68%51%47% 47%44%39%48%41%37%33%34%29% 30%27% 28%21%Japan2017US2018Rep. of KoreaGermanyIndiaChina2019Q10: Which of the following type of company would you trust the most to bring fully autonomous (self-driving) vehicle technology to the market?Sample size: Germany 1,733 [2019], 1,705 [2018], 1,574 [2017]; US 1,720 [2019], 1,760 [2018], 1,762 [2017]; China 1,735 [2019], 1,759 [2018], 1,748 [2017];India 1,725 [2019], 1,761 [2018], 1,748 [2017]; Japan 1,717 [2019], 1,762 [2018], 1,747 [2017]; Republic of Korea 1,731 [2019], 1,763 [2018], 1,757 [2017]7

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationElectric vehicles finallyshowing potential to scaleInterest in alternative powertrain technology continues to expandas fewer people want traditional internal combustion engines(ICE) in their next vehicle.Alternative powertrain YoYConsumer powertrain preferences for their next vehicle22% 4% 3%29%20%26%6% 5%37%34%6%12%39%31%10%43%40%10% 28% 5%57%Rep. ofKoreaChinaGas/diesel (ICE)46%41%Japan35%Hybrid electric (HEV)44%All battery-powered electric (BEV)Note: “Other” category includes ethanol, CNG, and fuel cell.Q45: What type of engine would you prefer in your next vehicle?Sample size: Germany 1,273; US 1,471; China 1,566; India 1,591; Japan 860; Republic of Korea 1,513812%Other

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationConsumers may be reluctantto pay for connectivityWhen it comes to vehicle connectivity, consumer opinion is split.Consumers in China are embracing the idea at over twice therate compared to Japan and Germany.Consumer opinions also differ on specific concerns aroundconnectivity, including the security of biometric data* generated andshared by connected vehicles.Percentage of consumers who feel that increased vehicleconnectivity will be beneficialPercentage of consumers who are somewhat/very concernedabout the concept of biometric data being captured andshared with external partiesChinaIndiaUS63%USJapan79%70%IndiaRep. of KoreaGermanyGermany76%60%55%Rep. of Korea35%36%ChinaJapan60%42%39%47%* Biometric data refers to information about the vehicle occupant(s) such as heartrate, blood pressure, blood alcohol level, etc.Note: Percentage of respondents who strongly agreed or agreedhave been added together.Note: Percentage of respondents who are somewhat concernedand very concerned have been added together.Q3: To what extent do you agree that as vehicles become more connectedvia wireless internet, they are more beneficial?Q22: As vehicles become more and more connected to the Internet, howconcerned would you be if the following types of data were shared with yourvehicle manufacturer, dealer, insurance company, and/or other third parties?Sample size: Germany 1,688; US 1,689; China 1,721; India 1,693;Japan 1,659; Republic of Korea 1,701Sample size: Germany 1,207; US 1,432; China 1,229; India 1,234; Japan 814;Republic of Korea 1,1269

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationConsumer concern also extends to who would manage the databeing generated and shared by the vehicle. Some people wouldchoose the OEM, but a lot of people would choose anybody else.Consumer preference regarding the type of company they would most trust to managethe data being generated and shared by a connected car17%53%Japan16%48% 4%India38%Rep. ofKorea29%31% 4%China34%31%USOEMNo oneOther30%Dealer2%27%15%9%GovernmentNote: “Other” category includes financial service providers, insurance companies, cellular service providers, and cloud service providers.Q23: In a scenario where you owned a connected vehicle, which of the following entities would you trust the most to manage the databeing generated and shared?Sample size: Germany 1,207; US 1,432; China 1,229; India 1,234; Japan 814; Republic of Korea 1,126109%14%24%7%31%31%Germany10%39%7%10% 4%9%2%15%

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationWhat do people want? Save me time and ensure my safety.Percentage of people interested in each connected vehicle featureCategoryChinaGermanyIndiaJapanRep. ofKoreaUSTime83%73%84%76%79%75%Suggestions regarding safer routesSafety81%68%84%75%78%72%Updates to improve road safetyand prevent potential ized vehicleinsurance planCost73%43%78%53%63%55%Maintenance updates andvehicle health reportingCost78%64%84%66%74%71%Maintenance cost forecastsbased on your driving habitsCost75%49%79%57%65%58%Customized suggestions regardingways to minimize service 58%68%53%Access to nearby parking (i.e.,availability, booking, and payment)Services82%63%83%68%74%61%Special offers regarding nonautomotive products and servicesrelated to your journey or destinationServices68%34%71%52%61%41%Receiving a discount for access to aWi-Fi connection in your vehicleServices69%43%73%51%65%55%Updates regarding traffic congestionand suggested alternate routesOver-the-air vehiclesoftware updatesTop featureNote: Percentage of respondents who are somewhat or very interested have been added together.Q21: How interested are you in the following benefits of a connected vehicle if it meant sharing eitheryour own personal data or the data generated by the operation of your vehicle?Sample size: Germany 1,207; US 1,432; China 1,229; India 1,234; Japan 814; Republic of Korea 1,12611

2019 Deloitte Global Automotive Consumer Study Advanced vehicle technologies and multimodal transportationOEMs, however, may also struggle to get consumers to payfor advanced connectivity features in most markets,even when it means increasing road safety.Extra amount that consumers would pay for a vehicle that could communicatewith other vehicles and road infrastructure to improve %GermanyNoneUSA littleRep. of Korea10%Japan7%7%IndiaChinaMore than a littleNote: Definition for “a little” is less than or equal to: Germany ( 600); US ( 500); Japan ( 50,000); India ( 25,000); China ( 2,500); Republic of Korea ( 500,000).Q25: How much more would you be willing to pay for a vehicle that had the following connectivity technologies?Sample size: Germany 1,207; US 1,432; China 1,229; India 1,234; Japan 814; Republic of Korea 1,12612