While price is the main criterion for choosing the brand of the next car to be purchased by consumers in developed markets, including Germany (55%), Japan (58%) and the United States (59%), product quality comes first for those in India (65%) and Southeast Asia (62%), and vehicle performance tops the list of criteria for buyers in China (53%) and South Korea (55%), according to the Deloitte 2024 Global Automotive Consumer Study. At the same time, cars with internal combustion engines are regaining popularity among consumers in certain markets, such as the USA (67%, up from 58% in 2023), Southeast Asia (52%, up from 50%) and Germany (49%, up from 45% in 2023).

Consumers who opt for an electric car are convinced by the lower cost of charging, in countries such as the USA (66%), Japan (62%) or Germany (50%), as well as by environmental concerns and lower maintenance costs, in India (68% and 56%, respectively).

“The slowdown in the development of electric vehicles is not very visible yet in Europe, where sales have recorded significant annual growth rates, at least for battery-powered and hybrid models (37% and 30% in 2023 compared to 2022), according to the European Automobile Manufacturers’ Association. However, in the last month of the past year, we witnessed a pace reduction, possibly influenced by the German market, where a trend reversal towards internal combustion engine cars is noticeable. In Romania, electric cars sales increased by over 50% in the first 11 months of 2023, and reached over 10% market share, but the evolution is uncertain, considering the halving of the state subsidy for these vehicles,” says Ciprian Gavriliu, Tax Partner, Deloitte Romania.

As far as battery electric vehicles are concerned, participants in the study are generally concerned about charging time, range, price and potential battery replacement costs. Additionally, for these cars, most surveyed consumers are concerned about the environmental impact of batteries – in India (89%), Southeast Asia (77%), Korea (69%), China (66%), Germany (64%), USA (62%), Japan (57%) – which indicates to industry players that they need to implement sustainable practices for using and recycling these components.

The study also shows that a brand’s commitment to sustainable practices is important and very important for consumers in India (56%), China (50%) and Southeast Asia (39%), and somewhat important for those in Japan (54%), Korea (41%), Germany (40%) or the USA (36%).

The willingness to pay for technology features that enable vehicle connectivity to certain information sources remains high among consumers in India (71%), China (60%) or Southeast Asia (55%) and low for those in Germany (20%), Japan (23%) or the USA (25%).