52% of minivan intenders, those who plan to purchase a minivan as their next new vehicle, say they will consider a hybrid engine, compared to 37% of all other segment intenders.
Over the past two months, AutoPacific has surveyed over 1,000 U.S. vehicle owners about their thoughts surrounding COVID-19 and their vehicle purchase plans. Overall, 20% of respondents say their new vehicle purchase timeline has changed due to COVID-19, up 6%pts from April’s survey results.
by Deborah Grieb, Director of Marketing and Consumer Insights
According to a recent study by AutoPacific, 34% of vehicle owners are choosing to delay or completely forgo their vehicle service during the COVID-19 pandemic, while another 28% will only take their vehicle in for necessary maintenance.
Source: AutoPacific COVID-19 survey (n=1,119)
According to the survey of more than 1,100 vehicle owners, fielded April 9-20, 2020, the need for social distancing is the primary reason for choosing to delay or forgo servicing their vehicle. 68% of respondents said, “I need to social distance; I don’t want to spend time in a waiting room with other owners.” 41% don’t want to be exposed to dealer personnel, and 41% don’t want their vehicle exposed to germs by mechanics, technicians and drivers. Personal finances, such as job loss or reduced income, account for 11% of service delays.
The affects of COVID-19 are being felt in every part of the automotive industry, from manufacturing to sales to service. “The majority of Americans are simply not driving much right now - no road trips, no commuting miles - so people can likely delay their service without causing damage to the vehicle, making service non-essential for the time being” explains AutoPacific president George Peterson.
by Robby DeGraff, Manager of Product and Consumer Insights
Do You Want to Remotely Activate Your Vehicle? According to AutoPacific’s latest Feature Attribute Demand Study, 64% of new vehicle buyers under the age of 40 want remote connectivity in their next vehicle.
From Hyundai to Lamborghini, vehicle owners have the ability to easily perform basic functions like locking and unlocking, starting an engine, or activating heated seats on a cold winter morning. Some apps take it a step further in offering convenient remote dealership maintenance scheduling, paying a monthly new vehicle loan, and even establishing geofencing or curfew alerts for adolescent drivers.
Results show that the younger the new vehicle buyer, the stronger the demand for remote connectivity, with 65% of new vehicle buyers under age 30 showing a desire and 64% between 31 and 39 years old. As expected, the demand drops in steps as the age brackets for new vehicle buyers climb. Only 35% of buyers 60 to 69 years old, and a mere 28% over the age of 70 desire this level of connectivity with their new vehicle.
Source: AutoPacific Future Attribute Demand Study
Alexa, Start My Car at 7:00 AM
From the comfort of one’s living room or conference room to being on a hike at a national park’s trailhead, the methods by which consumers tap into remote connectivity continue to expand. 97% of surveyed new vehicle buyers that voiced demand for wanting remote connectivity to their vehicle would prefer to use a smartphone for doing so; 40% would opt to use a smartwatch. At-home “smart speakers,” specifically Amazon’s Echo (Alexa), get 30% preference.
Source: AutoPacific Future Attribute Demand Study
Real-World Impact
To gauge the effectiveness of various manufacturers’ mobile apps, we polled a group of current vehicle owners that fall under the Generation Y and Generation Z umbrellas on how having access to remote connectivity contributes to everyday life:
“I use it (MySubaru app) daily in the winter and on hot days in the summer to star my car. The lock and unlock comes in handy when needed, but I don’t use it every day” -Adam, 37
“I turn on the climate control on colder mornings in my 2014 Nissan Leaf.”-Colton, 28
“I use it (FordPass app) to lock and unlock my Ford Escape when I can’t remember if I did it or not” -Emily, 37
“I only check the charging status if I'm on the road at a public charger. At home I never look at it (Tesla app) because it fills up overnight and is good to go. I also use it in the morning to warm up the car.” -Chris, 38
These responses reflect much of what our Feature Attribute Demand Study revealed about specific remote functionality. For example, 79% of respondents who want remote connectivity with their vehicle would utilize it for a remote start function. 75% would use remote connectivity to lock or unlock their vehicle’s doors, while 72% would choose to pull out their smartphone or glance at their smartwatch to locate their vehicle in say, an overcrowded parking lot.
Remote Connectivity is Here to Stay
As more young buyers enter the marketplace for a new vehicle, AutoPacific expects remote connectivity is here to stay. Manufacturers should continue to pursue offering some type of remote connectivity, whether through mobile apps or “smart speaker” compatibility.
AutoPacific’s recent COVID-19 survey results reveal the potential for an uptick in use of online vehicle sales services over the coming weeks and months.
by Deborah Grieb, Director of Marketing and Consumer Insights
39% of consumers who intended to purchase a new vehicle within the next year say their plans have been delayed due to COVID-19. According to results of an online study of U.S. vehicle owners, fielded by AutoPacific from April 9-April 20, 2020, the majority of delays range from 3-6 months (33%) and 7-12 months (25%), while 27% say they are just waiting for things to get back to normal.
Source: AutoPacific COVID-19 impact survey; 0-12 month purchase intenders
Source: AutoPacific COVID-19 impact survey; 0-12 month purchase intenders who plan to delay their purchase (n=52)
The economic threat appears larger to the car-buying population than the fear of contracting or transmitting the disease.
Over half of consumers state “economic uncertainty” as the top reason for this delay while 19% say “fear of going out” has caused the delay.
by Deborah Grieb, Director of Marketing and Consumer Insights
Increased use of cell phones for navigation services would lead many to believe factory-installed, or on-board, navigation is heading down the same path as cassette and CD players. In fact, the death of on-board navigation is far from reality.
According to AutoPacific’s Future Attribute Demand Study, 60% of new vehicle buyers want factory-installed navigation on their next vehicle. While down slightly from previous years, feature demand remains strong and ranks 3rd overall out of over 100 features surveyed.
AutoPacific Future Attribute Demand Study: 2016-2019
Despite lower demand from younger generations, interest in this feature remains strong at greater than 50% from even the youngest buyers. As demand increases with age, expect factory-installed navigation to have a presence for years to come.
AutoPacific 2019 Future Attribute Demand Study
Autonomy Secures the Long-Term Future of On-Board Navigation
Autonomous drive technology continues to generate buzz in the industry, and automakers and suppliers are racing to make it ready for prime time. Among the many components needed to make fully autonomous driving a reality is extremely accurate GPS map data. At current levels of technology, this map data must be on board the vehicle, rather than sourced from the driver’s phone. Future autonomous drive implementations that can autonomously get a vehicle from point A to point B will require on-board GPS maps to determine the best route and drive itself to the destination.
by Deborah Grieb, Director of Marketing and Consumer Insights
When asked if they “would prefer to own a vehicle that, on demand, can drive itself,” 28% of new vehicle buyers overall agree with the statement (top 2 box). Generation Z new vehicle owners are the most likely to agree (50%), followed by Generation Y (49%).
Source: AutoPacific 2019 New Vehicle Satisfaction Study
Connectivity versus Practicality
While younger generations may be more interested in autonomous vehicle technology now, their reasons likely stem from their lifelong immersion in technology and desire to remain connected, reduce commute fatigue, etc. Older generations, on the other hand, have a longer road to gaining comfort with autonomy, but ironically, may be the first to experience the benefits of full autonomy. AutoPacific believes it is likely that small geofenced areas, like retirement communities and hospital campuses, will be among the first places to launch fleets of autonomous vehicles, introducing seniors the benefits of a fully autonomous transmission before Gen Z and Gen Y.
by Deborah Grieb, Director of Marketing and Consumer Insights
In a February 2020 report from the Governor’s Highway Safety Association, the number of pedestrian fatalities in the US is predicted to total 6,590 for 2019 - an increase of more than 50% over the past decade and accounting for 17% of all traffic deaths. While there are several factors at play, the number of nighttime pedestrian fatalities has increased by 67% over the last 10 years (compared to 16% daytime pedestrian fatalities).
Source: AutoPacific 2019 New Vehicle Satisfaction Study
Source: AutoPacific 2019 New Vehicle Satisfaction Study
A Night Vision System allows drivers to see what (or who) is down the road -- even on the darkest nights.
According to AutoPacific’s 2019 New Vehicle Satisfaction Study, 36% of new vehicle owners want more safety features than they currently have in their vehicle. When asked about specific safety features wanted on their next new vehicle, Night Vision System ranks 9th among the 28 features surveyed, with 33% overall demand.
Night Vision System demand is strongest from those intending to purchase an SUV, women and new car buyers over age 50.
by Ed Kim, President and Chief Analyst
In follow-up to last week’s AutoPacific Insights, which looked at consumer demand for EVs and sales per nameplate, we take a closer look at what’s left after Tesla takes the lion’s share of sales.
Source: AutoPacific Q120 Light Vehicle Sales Forecast
Tesla currently holds 77% of the BEV market with 3 nameplates. AutoPacific’s 2025 forecast has Tesla holding 40% of an increased market with 5 nameplates. More for everyone else, right? Sort of.
Of the 85 nameplates that make up the 2025 BEV market, only 13 of them are forecast for volumes greater than 10k units, not including Tesla. Remove those 13 from the equation, and you’re left with 32% of the market to split between 67 nameplates. Simple math tells us that’s 3,600 units per nameplate.
Source: AutoPacific Q120 Light Vehicle Sales Forecast
Tesla is by far the leader in BEV sales, and is expected to remain the leader for years to come. Look for new entries from several automakers, including Rivian, Ford, Volkswagen and Chevrolet, to sell greater than 10,000 units.