February 7, 2020 Consumer Trends for the Automotive Industry 2020

Digital transformations are driving the trends in the automotive industry. With IoT technology vehicles collect data and keep us connected.

In general, however, the automotive industry hasn’t been quick with its innovations. Are we on the verge of truly revolutionary changes this year?

The true factor that drives progress is a customer’s expectation. We expect a lot, so suppliers and manufacturers will try to meet our increasing standards.

2020 Consumer Trends for the Automotive Industry

1. Electric Vehicles Are a Big Deal

In the 2020 Global Automotive Consumer Study published by Deloitte, EV technology takes the focus.

More people than ever are interested in vehicles with alternative powertrain technology. If they are about to buy a new vehicle, they are most likely to move away from the traditional internal combustion engines. We’re becoming more aware of everything that our planet has to endure because of our strive for comfort. If we can contribute towards a more sustainable automotive industry, we will do it.

In the US, 59% of respondents still prefer gas or diesel for their next vehicle. That’s disappointing. In Japan, however, 47% of the respondents would opt for a hybrid electric vehicle. China had the highest percentage of respondents who would opt for a battery electric vehicle (19%).

Although we’re still not in a place where all consumers push manufacturers to produce only electric vehicles, the future seems optimistic.

Fossil fuel is a limited resource. It will be getting more expensive. If environmental awareness doesn’t push consumers towards electric vehicles, the price will.

2. Young People Steer Away from Owning Vehicles

A surprising factor that affects the trends in the automotive industry is alternative means of transport.

Young people, in particular, show massive support to mass transit, which is the most efficient way to combat traffic jams. In the Republic of Korea, 37% of respondents said that they frequently combined different modes of transportation in one trip.

The popularity of ride-hailing services has increased because of multiple reasons. First and foremost, not everyone has the finances to own their own vehicle. In the US, 41% of Gen Y/Z wonder if they need a car. In India, that rate is a massive 64%.

It makes sense. Students need a lot of money for college and living expenses. Quality coursework help in the UK may cost hundreds of dollars, and a student has to make that investment on a monthly basis. They don’t have enough money to purchase and maintain a vehicle. However, young people seem more interested in environmental issues as well.

If manufacturers listen to this trend, we can expect to see more affordable cars and being introduced in 2020.

3. Autonomous Vehicles Will Have to wait a Bit

The story of autonomous vehicles is really attractive. It seems like a futuristic movie that we finally get to experience.

Imagine how the car gets you to your destination while you’re working on your laptop.

It seems like most people don’t trust that concept just yet. They are concerned about the safety. If they don’t have their hands on the wheel, they don’t trust that the vehicle will perform as they want it to.

The Deloitte study showed that 48% of US respondents agree that autonomous vehicles won’t be safe. That percentage is slightly lower when compared to last year’s responses, when it was 50%.

People are so afraid of the idea of autonomous vehicles that they don’t want them to be tested in the area where they live.

There’s an interesting aspect to this trend: the consumers might change their minds if their government guaranteed the safety of AV with a certificate. This means that governments will have to get more involved in the automotive trends. If this technology is safe, they have to guarantee that for their citizens.

Affordability, Safety, and Sustainability

Those are the three massive consumer trends that will drive the growth of the automotive industry.

We’re seeing producers slowly moving away from fossil fuels. But the progress in this niche is too slow. We want to see a bigger percentage of electric vehicles on the streets. Most of us are thinking about contributing to that trend with the next vehicle purchase we make.

Affordability is another massive factor that will influence production. We still want quality. However, young people are not ready to pay massive amounts for it. Young people would like to choose cheap or free services like as topicsmill where is possible to find education essay topics for free and a little bit more.

As for the autonomous vehicle trend, it will have to wait. Manufacturers are interested in it; that’s for sure. But is the audience ready to accept the technology? Not just yet.

Elizabeth Skinner is a blogger and tech lover. She likes exploring technology trends and seeing how they affect different industries. Her lifestyle as a blogger imposes the need of using technology every single day.

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