The mood of buyers changed in the era of expensive cars: From budget to features, these 4 big trends emerged in McKinsey’s report.

Automobile Desk: Rising car prices and increasing inflation in the global market have completely changed the thinking and priorities of vehicle buyers. People are no longer looking at just the brand or price alone while buying a car, but are giving priority to technology, safety, long-term savings and smart features. This major change in the automobile world has been revealed in the recent report of global consulting firm ‘McKinsey’.

​This report has been prepared on the basis of a survey of more than 20,000 consumers from major markets like China, Germany, Japan, Britain and America. Let us understand what new trends are being seen in the auto sector according to this report.

Due to economic pressure, purchase of new car postponed, demand for small models increased

Due to rising inflation and global economic uncertainties, a large section of people are avoiding buying a new vehicle. Almost one-third (33%) of the people surveyed admitted that they are currently postponing the purchase of a new car due to financial reasons. At the same time, about 50% of the customers say that even if they buy a car, they will give preference to smaller and economical models (Downsizing) than before to keep their budget balanced.

No compromise on technology and quality

Even though people are cautious about the budget, they do not want to buy vehicles of poor quality or old technology just for the sake of low price. Today’s customer is demanding ‘value for money’ products. That is, even if the price is competitive, it is mandatory for the vehicle to have modern and smart features. For this reason, there is now double pressure on car manufacturing companies to provide better features at an affordable price.

Increasing popularity and decreasing concerns of electric vehicles (EV)

​Despite inflation, people’s inclination towards electric vehicles is increasing rapidly.

​China’s dominance: Chinese consumers are at the forefront of EV adoption, with the majority choosing an electric vehicle as their next vehicle.

​Europe and other markets: Demand for EVs is also strong in Europe, while customers in countries like the US and Japan are gradually moving towards electric mobility.

The most reassuring thing is that the initial hesitation of customers regarding battery and range has now reduced to a great extent. However, customers still want complete clarity on the availability of charging infrastructure, battery life and starting price.

ADAS, AI and smart features become the first choice

​In today’s era, the car is not just a means of transportation but has become a ‘smart gadget’. Customers are very fond of Advanced Driver Assistance System (ADAS), Artificial Intelligence (AI) based voice commands and connected car features. An interesting thing revealed in the report is that many customers are ready to change their old favorite car company (brand) to get better self-driving technology and safety features.

Message for auto companies

​This report by McKinsey is a clear signal for automobile companies. In the times to come, only those companies will be able to survive in the market which offer an ideal balance of right price, modern technology, excellent driving experience and after-sales support. The brands that quickly understand these changing needs of buyers will rule the future auto market.

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