South African extract of 2024 Global Automotive Consumer Study
Tracking consumer trends in the automotive industry
From September through October 2023, we surveyed almost 1000 South Africans as part of more than 27,000 consumers in 26 countries to explore opinions regarding a variety of critical issues affecting the automotive sector, including consumer interest in electric vehicles (EVs), brand perceptions and connected technology adoption. The South African extract of our 2024 Global Automotive Consumer Study provides important insights that can help companies prioritise and better position their business strategies and investments in the year to come.
Trends affecting the mobility ecosystem
What consumer trends and disruptive technologies will have the most impact on the automotive industry in the coming year? Explore key findings from our 2024 Global Automotive Consumer Study, including the evolution of mobility, connectivity, car buying trends and more.
In this year’s study, four key trends emerged:
- Slowing EV momentum may be putting current decarbonisation timelines in jeopardy.
- A significant number of consumers may be thinking about switching vehicle brands.
- Interest in connectivity features may not fully translate into revenue and profit.
- Younger consumers are interested in vehicle subscriptions, as a growing number of them question if they need to own a vehicle going forward.
For more details on these evolving automotive consumer trends, download the (1) SA Report; as well as the (2) Global report.
Trend 1: Vehicle electrification
As global economic conditions continue to change, South African consumers still have concerns regarding Electric Vehicles. Consumers still expect to pay less than R750 000 for their next vehicle purchase and are drawn more to the adaption of EVs due to the perception of significantly lower fuel costs. This indicates that overall vehicle affordability and increasing fuel costs remain a consumer concern.
Trend 2: Future vehicle intentions
There are several factors that South African consumers consider when purchasing a new vehicle. Trying something new and new vehicle features are at the top of this list. Performance and product quality also play an imperative role in influencing an Electric Vehicle or Internal Combustion Engine (ICE) purchase.
Trend 3: Autonomous vehicles are coming back into view
An evolving view of the regulatory environment governing the development of autonomous technology in some Global Market may ease the deployment of self-driving vehicle fleets for both Consumer and commercial applications, but more than half of Survey Consumer in India, the United Kingdom and the United States remain concerned about their safety. Having said that, the integration of artificial intelligence into vehicle systems to enable self-driving features is seen as largely beneficial, particularly in Asia-Pacific Market.
Trend 3: Connectivity
In comparison to other markets, South African consumers trust insurance companies the most with the management and collection of their vehicle data. Not only are consumers willing to share their personal information, they are also willing to pay for these connectivity features as they believe they assist them in maintenance, road safety, alternative routes, and other road-related issues.
Trend 4: Shared mobility
Shared modes of transportation have consumers questioning whether they need to own their own vehicles. Also, more consumers are willing to transfer between modes of transport if it reduces their overall travel time.
Trend 5: Vehicle subscriptions
An increasing number of consumers are considering giving up vehicle ownership and rather opting for vehicle subscription services due to the convenience, cost control, and availability of vehicles. This creates room for growth within the market if vehicle subscription is made more affordable as consumers wish to spend less than R6000 a month for their next vehicle.
Ravin Sanjith
