Deloitte: US Consumer Interest in Internal Combustion Engines Remains Steady Amid Affordability Concerns and Shifting Expectations Around Value

Key takeaways

• In the U.S., interest in internal combustion (ICE) vehicles and hybrids (HEV/PHEV) is relatively flat, while BEV intent is up slightly year-over-year.
• Available driving range remains the top EV concern for U.S. consumers surveyed (47%), followed by charging time (44%) and overall cost (40%).
• Brand loyalty continues to wane, with 53% of U.S. consumers surveyed planning to choose a different brand for their next vehicle, driven primarily by product quality, performance and pricing considerations.
• More than half of U.S. survey respondents (52%) say they would keep their vehicle longer with regular over-the-air (OTA) updates, with 62% willing to pay above a vehicle’s list price to gain access to the functionality.
• Security-oriented connected features, such as anti-theft tracking, resonate most with U.S. consumers, while concerns about data sharing, particularly personally identifiable data, remain high.
• Service interactions play an increasingly important role in shaping customer trust, with 57% of U.S. vehicle owners surveyed indicating they had their most recent service experience at a dealership, citing quality of work as the key driver.

Why this matters
The automotive industry is navigating one of the most transformative periods in its history amid shifting consumer expectations, advancing vehicle technologies, and new ownership dynamics. For 16 years, Deloitte has examined the consumer trends influencing the rapidly evolving global mobility ecosystem. This year’s report, “2026 Global Automotive Consumer Study,” explores powertrain preferences, future vehicle intentions, software-defined experiences, and servicing expectations at a moment when affordability concerns are leading many consumers to reconsider what truly defines value in mobility and what they expect from vehicle brands.

Affordability influences EV intent
U.S. consumers are balancing affordability with the realities of charging access and everyday use as they consider future vehicle choices. Persistent concerns around range, charging time and cost continue to temper BEV/PHEV adoption, signaling a cautious move toward electrification.

• Among U.S. surveyed consumers, purchase intent for ICE (61%) and hybrid electric vehicles (HEV/PHEV) (26%) is flat year-over-year, while BEV purchase intent has seen a modest increase, rising only 2 percentage points year-over-year to 7%.
• Among global respondents, BEV intention is highest among consumers in China (20%), along with hybrid intentions in Japan (43%), highlighting the difference in powertrain adoption across markets.
• Lowering fuel costs remains the top reason (52%) that U.S. consumers surveyed say they would consider an EV for their next vehicle purchase, reinforcing a strong desire to mitigate longstanding concerns around total cost of ownership.
• A majority of U.S. EV intenders surveyed plan to charge their vehicles at home (77%), yet over half (53%) report they currently do not have access to a dedicated home charger, underscoring a potential source of concern regarding associated installation costs.
• Available driving range remains the greatest BEV concern for U.S. consumers (47%), followed by time required to charge (44%) and overall cost (40%). Interestingly, safety concerns with battery technology is a growing concern among global respondents in South Korea (50%), India (38%) and China (32%).

Consumers rethink vehicle loyalty and value
Brand loyalty continues to evolve as consumers weigh fundamentals like price, performance and quality in their next vehicle decisions. In the U.S., surveyed consumers remain anchored by transparent pricing and the ability to evaluate vehicles in person, reinforcing the continued role of trusted dealer interactions in shaping the purchase experience.

• A majority of respondents surveyed plan to switch brands for their next vehicle: 53% of U.S. consumers surveyed plan to switch brands, and globally, switching intent is highest among consumers in China (72%) and India (70%).
• Product quality (58%), vehicle performance (51%), and price (46%) remain the top factors influencing U.S. consumers’ choice of brand for their next vehicle.
• For U.S. consumers surveyed, the most important aspect of their next vehicle purchase experience centers around getting a good deal (62%), followed by transparent pricing (47%) and experiencing the vehicle in person (40%), reinforcing the role of dealership interactions in consumer purchasing experience.
• Preference for domestic over foreign brands is variable among U.S. consumers, with 46% indicating no brand origin preference, so long as the vehicle meets their needs. In contrast, respondents in Japan show the highest domestic brand affinity at 78%.
• Across many global markets, dealer visits and manufacturer websites remain leading research channels, with over half of German consumers (56%) and 47% of U.S. consumers relying on dealer interactions. Manufacturer websites are the top source in Japan (50%), while consumers in India (59%) and Southeast Asia (53%) turn to social media and influencer reviews when researching their next vehicle.

— Jody Stidham, managing director, global automotive, Deloitte

SDVs generate mixed signals
As vehicles become more digitally enabled, U.S. consumers remain selective in the connected and software-defined features they value. Safety-oriented applications generate the strongest interest, while enthusiasm for OTA upgrades that extend the vehicle lifecycle is tempered by willingness to pay a premium for features that some expect to be included as standard.

• U.S. consumers surveyed show the highest willingness to pay for safety and security-related connected features, including anti-theft tracking (61%), pedestrian/vehicle detection (59%), and emergency assistance (58%).
• Data privacy within connected-vehicle systems remains a major concern for U.S. respondents, particularly around information from synced devices (62%), in-cabin camera data such as driver monitoring (58%), and vehicle location data (58%), underscoring rising sensitivities around personally identifiable information.
• Willingness to pay for enhanced over-the-air (OTA) functionality remains somewhat limited. Among U.S. consumers surveyed, 38% say they are not willing to pay anything extra and a further 28% are only willing to pay up to 5% above the vehicle’s list price for automated updates that reduce workshop visits, suggesting OTAs may be viewed as a baseline expectation rather than a premium feature.
• More than half of U.S. consumers surveyed (52%) say they would keep their vehicle longer if it received regular OTA updates: 26% of U.S. consumers would keep their vehicle for an additional two to three years, with such updates opening the door for OEMs to strengthen brand loyalty through frequent digital engagement while reducing their reliance on hardware redesigns.
• Voice command support in local languages is seen as a crucial functionality among respondents in China (80%), India (80%) and Japan (70%), compared to only 43% of U.S. consumers, signaling regional differences in digital engagement expectations.

Trusting the service experience process
How and where a vehicle is serviced continues to shape trust, influencing the value consumers place on different service providers. While dealerships remain a familiar touchpoint for many, expectations around quality, clarity and communication suggest that service experiences play an increasingly meaningful role in how consumers view their ownership journey.

• A majority of U.S. consumers surveyed received their most recent vehicle service at an authorized dealership (57%), though independent repair facilities still represent a meaningful share of service visits (31%).
• Quality of work remains the top driver of service provider choice for U.S. consumers (20%).
• Transparency around pricing and the work performed is the most important aspect of a vehicle service experience, according to 24% of survey respondents.
• U.S. consumers report the highest trust in the dealership where they regularly service their vehicle (25%), followed by the dealership where they bought their vehicle (21%), underscoring the influence of dealer interactions in shaping long-term customer relationships.

— Lisa Walker, vice chair and U.S. automotive sector leader, Deloitte

Deloitte’s “2026 Global Automotive Consumer Study,” is based on a survey of more than 28,000 consumers from 27 countries conducted from October through November 2025. For additional details and country-specifics, please visit the interactive dashboard.