Consumers Pump Brakes on Advanced Auto Tech Adoption

Car buyers are taking a measured approach to self-driving capabilities, connectivity features, and shared mobility.

There are more choices than ever when it comes to automobiles: increasingly advanced autonomous driving technologies; electric, hybrid, and gas powertrain options; ever more connectivity features; and ride-hailing alternatives, for a start. However, consumers appear to be proceeding with caution or, in some cases, pulling back on adoption of some of these options, according to the 2019 Deloitte Global Automotive Consumer Study. The annual study surveys more than 25,000 consumers in 20 countries to explore opinions about critical issues affecting the automotive sector, including consumer interest in, and willingness to pay for, advanced technologies.

This year’s study highlights several trends, including the following:

• As the technology gets ever closer to scalable, real-world application, consumers are questioning if autonomous vehicles (AVs) are safe

• Demand for electric and hybrid vehicles is growing in Europe due to supportive environmental policies.

• Consumers appreciate connectivity features related to safety and traffic management but are unlikely to pay more for them and have concerns about data management.

• Overall consumer behaviour is proving difficult to change. A shared mobility future may hinge on younger people that have fully embraced the precepts of a digitally enhanced existence.

The proliferation of sensors that can track everything from vehicle performance and operational statistics to geolocation information and occupant wellness, however, raises questions about data privacy and security.

Autonomous Vehicle Concerns

As self-driving technology inches closer to wider scale, real-world application, trust in autonomous vehicles (AVs) appears to be stalling. Many consumers are concerned about safety and are taking a watchful approach, the survey finds.

In Italy, confidence in the belief that AVs will be safe is at 29%, significantly higher than in 2017, when nearly three-quarters voiced safety concerns, much like the majority of European countries surveyed at the time. Netherlands respondents are the most cautious with 56% agreeing that AVs will not be safe. Just over half of the respondents say reports of AV accidents have had a significant impact on their view of the technology. Most respondents globally say they want their governments to exert a significant amount of control over the development and use of AVs. At the same time, consumer trust in automakers’ ability to bring AV technology to market continues to erode across most core global auto markets.

Electric Vehicles (EVs) Spark Interest

Now that consumers can see how electric vehicles and infrastructure might scale, interest in alternative powertrain technology is growing, with fewer consumers voicing interest in traditional internal combustion engines for the future. Adoption of EVs will likely play out differently region by region, however.

Nearly six in 10 respondents in Italy and 5 in 10 respondents in France say they would prefer a hybrid, battery, or other alternative to traditional petrol/diesel for their next vehicle, up from last year. However, not all countries show such increased optimism mainly because of fuel prices, emissions standards, and EV incentives. Stronger policies to address pollution concerns and foreign oil reliance in may encourage faster EV adoption.

Questions About Connectivity

Consumer opinions are split on vehicle connectivity. Respondents in Italy (60%) are embracing the idea in significantly greater numbers than those in Belgium (47%) and the UK (45%). Meanwhile, in Netherlands (38%), France (36%), Germany (35%) and Austria (29%), respondents remain to be convinced.

The most valued connectivity features enable drivers to get from point A to point B more quickly and effectively. Indeed, 43% of U.S. consumers say the most important aspect of mobility is getting to their destination in the least amount of time. It’s no surprise, then, that interest in features such as traffic congestion tracking and road safety alerts is universally high. Nearly three-quarters of U.S. consumers say they are seeking these features.

The proliferation of sensors that can track everything from vehicle performance and operational statistics to geolocation information and occupant wellness, however, raises questions about data privacy and security. Respondents in Austria (64%), Germany (60%), UK (57%) and the Netherlands (56&) are concerned about biometric data captured by a connected vehicle being shared with external parties. This is less so in France (49%) and Belgium (42%), while respondents in Italy (31%) generally believe this should not be an obstacle to driving EV adoption.

With regards to the management of the data generated and shared by vehicles, there are mixed responses, where a good showing of respondents say they would prefer the automaker to have control, but a significant number say they would prefer someone else or no one at all.

Even when consumers are sold on a connectivity feature, they may not be sold on the price. The survey shows that OEMs would struggle to get consumers to pay for advanced connectivity features in most markets even when it means increasing road safety.

Mobility Alternatives Face Headwinds

Daily usage of personally owned vehicles is quite high in some markets. Nearly 66% Italy respondents say they use their own cars every day. Even in those places where personal car usage is lower, respondents expect to maintain the status quo for the near future. That may begin to change as younger generations embrace shared mobility; members of Generations Y and Z are more likely to consider a future without car ownership.

Connected, electric, and autonomous vehicles have tremendous potential, but consumers may be slow to adopt these advanced technologies at scale until there is a clear improvement in safety, cost, convenience, and customer experience from a trusted brand. For the auto industry, the pressure will be on to address consumers’ concerns by making the kinds of investments and decisions that result in solid execution.