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Arthur D. Little Global Automotive Study Outlines Importance of Car in Changing World of Mobility

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Arthur D. Little (ADL) today released its worldwide automotive market report. Key findings are that desire for car ownership remains strong, especially amongst the young, and that drivers are considering a dramatic switch to electric and hybrid vehicles (EVs). This will impact manufacturer and supplier engine strategies and push for faster development of EV ecosystems, such as charging solutions.

Drivers are now much more willing to embrace alternative drivetrains. 58% would accept paying more for hybrids, and 50% for EVs. While the majority have petrol or diesel-engined vehicles, this could change rapidly. Of those planning to replace their car, 48% said they’d consider an EV (BEV, hybrid or plugin hybrid), 36% a petrol-engined vehicle and 12% diesel.

Klaus Schmitz, Partner with Arthur D. Little explains: “Extending our groundbreaking 2015 automotive study shows enormous changes. While attachment to car ownership remains high, meaning the overall automotive market will remain stable, the switch to alternative drivetrains and new mobility options will disrupt manufacturers, with EV driver demand exceeding currently planned capabilities and ecosystem readiness.”

Trust in autonomous vehicles (AVs) has weakened - 57% of drivers would use full AVs, down from 64%. If used, 44% said AVs would replace private cars for short, urban trips and 29% replace public transport – affecting city mobility strategies.

Personal data concerns within autonomous and connected driving are rising. 59% of US drivers say data security worries would prevent them using advanced autonomous driving functions.

Wolf-Dieter Hoppe, Partner with Arthur D. Little comments: “Drivers in all countries we surveyed except China are becoming much more sensitive around private data. In the long run, protecting this data will become a key competitive differentiator for manufacturers and providers of mobility solutions.”

Half of respondents agreed that owning a car was important – almost the same number as in 2015, with independence, comfort and convenience remaining their top reasons. Despite the growth of car sharing schemes, a minority, even of under 30s, were registered with one. Openness to peer-to-peer sharing of private cars dropped globally, from 25% to 23%, although it grew slightly in China (42%) and the US (29%).

The ADL Global Automotive Study surveyed over 8,000 drivers in 13 countries - a summary is available here: www.adl.com/FOAM

Contact information

Cate Bonthuys
Tel: +44 7746546773
cate@catalystcomms.co.uk

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