Safety and Convenience Features Top Most-Wanted List in AutoPacific’s 2023 Future Attribute Demand Study

by Deborah Grieb, Director of Marketing and Consumer Insights

Results of AutoPacific’s recently released Future Attribute Demand Study (FADS) show comfort and convenience features at the top of new vehicle shoppers’ wish lists. Our annual study contains responses from over 11,700 licensed drivers in the U.S. who intend to acquire a new vehicle within the next three years. Respondents were asked a range of questions from what brands they will consider for their next new vehicle to what type of vehicle and powertrain type they intend to acquire, but most importantly, what features they want to have in that vehicle. AutoPacific’s 2023 FADS measures demand for 145 features ranging from autonomous driving to infotainment technologies to seating, including features specific to certain segments and powertrains.

The most wanted feature for 2023? LED fog lights. New to the survey this year, LED fog lights are desired by nearly half of all respondents (48%). In recent years, not only have fog lamps become common even on mid-grade versions of mainstream vehicles, but they have also largely made the transition to LED as they last much longer and emit brighter white light for improved visibility in adverse conditions.

Consumers Want the Convenience of In-Vehicle Wireless Charging

Wireless charging pads for portable electronic devices take two of the top 10 spots this year, 2nd and 5th, as 48% of new vehicle intenders want a wireless charging pad for front passengers and 40% would like one for rear passengers. We’ve seen that cutting the cord has been a common theme in households for years and vehicles are following suit. From wireless Apple CarPlay to wireless device charging, providing consumers with a clean and convenient vehicle interior by ditching the cords has mass appeal.

An Autonomous Driving Feature Finally Finds A Big Audience

Also new to the survey this year is “unresponsive driver stop assist,” an autonomous driving feature that can automatically move the vehicle to the side of the road and come to a complete stop if the vehicle senses that the driver has become incapacitated. This feature is crucially important should a driver have a medical emergency, like a stroke, seizure, or lose consciousness. AutoPacific expects this feature to become more common in the coming years, especially as hands-free semi-autonomous drive features become more widely available.

While autonomous driving features typically appeal more to males than females and younger consumers over older consumers, this new safety-focused autonomous feature does the opposite with slightly higher demand from females and greatest interest from those over age 60 (47%) and may help provide greater consumer acceptance and comfort with autonomous vehicle technology.

Consumers Choose Features, not Vehicle Type to Express Their Personality and Style

by Deborah Grieb, Director of Marketing and Consumer Insights

How much do consumer views and attitudes dictate the type, brand and features for their next new vehicle? AutoPacific’s extensive battery of psychographic statements provide clients the ability to dig deeper into consumers to develop consumer profiles and feature packages based off those profiles, as well as target marketing strategies. AutoPacific looked at two opposing views related to vehicles and driving: those who say their vehicle should express their personality/style/ individuality and those who consider a vehicle to be a means of transportation rather than a source of pleasure. Using top responses from a 4-point scale of applicability (4 = applies perfectly), findings reveal a strong impact on feature demand but minimal differences in vehicle type and powertrain preferences.

We believe lifestage plays a major role in vehicle purchase decisions, despite a consumer’s views and opinions about vehicles and driving. Income, children and daily driving responsibilities often force a consumer into one vehicle over another despite what their heart may be telling them, leading to personalization through features.

For example, 8% of respondents who want an expressive vehicle say they’ll purchase a 2-row midsize SUV or crossover, but that number increases to 11% when looking at respondents without children and decreases to 4% for this with 3 or more children. Conversely, only 4% of respondents without children plan to purchase a 3-row large SUV or crossover, compared to 12% of respondents with 3 or more children.

How do Automakers Appeal to Different Personalities and Attitudes? Through Features & Technology

In this case, 51 of the 121 features surveyed have higher demand from respondents who want to express their personality/style/individuality with their vehicle, compared to those whose vehicle is simply a means of transportation. Personalization features such as illuminated brand logo, interior ambient lighting with selectable colors and LED accent lighting with welcome and goodbye animation are the most likely to be desired by personality seekers. Following close behind are upscale features that enhance the vehicle interior experience, such as branded premium audio, leather seats and heated and ventilated/cooled front seats. The ways to express yourself through your vehicle are exponential. From outward expression with lighting and color to interior expression through seating, sound (both interior and exterior), and technology.

Range and Charging Time Top Reasons Consumers Are Saying “No” to EVs

by Ed Kim, President and Chief Analyst

Results of a recent online survey we issued indicate range and charge time issues are mostly to blame for deterring potential future electrified vehicle (EV) buyers. The study was issued to AutoPacific's proprietary panel of respondents who are licensed drivers ages 18 and older and reside in the U.S. Of the 827 survey respondents, 50% say they would consider an EV in the near future and 50% say they will not.

As a precursor to our comprehensive EV Rejector Study planned for release later in 2023, this smaller panel survey serves to test some initial hypotheses while the larger future study is being designed. It’s not a secret that those who refuse to purchase an EV are concerned about range and charging, but we now know more specifics about these deterring elements, like distance to charging station, availability of charging at work, dwelling style, etc. According to consumer responses, the top reason cited for not considering an EV in the future is “I would be worried about losing charge and being stranded,” followed by “I think the charge required to wait for an EV to charge is too long.”

Misperceptions and/or Lack of Charging Locations Deter Potential Buyers

Of respondents who will not consider an EV, 45% believe their home would require extensive and expensive upgrades in order to successfully charge an EV, compared to only 14% of EV acceptors. Additionally, only 6% of rejectors say either their employer offers a place to plug in or a public charging station is within close walking distance, compared to 30% of EV acceptors. At this point, consumers who can adopt an EV lifestyle most easily are the ones who are going to become EV owners. While there is a certain level of misunderstanding about at-home chargers, and there’s certainly a lack of public charging infrastructure, it will take a combination of education and availability to grow the EV acceptor population.

Electrified Vehicles Priced Under $35,000 Could Persuade Some Initial Rejectors

EV cost is also a deterrent, as 41% of respondents cited “buying and/or operating an EV is too expensive” as a reason for rejection. However, a combined 35% of those respondents say they would change their mind if an EV was priced below $35,000. Given the more affordably priced EV entries on the horizon, it’s nice to know there’s not only an existing market for a cheaper EV among EV acceptors, but that a lower price point could sway some initial rejectors to enter the market.

This finding highlights the importance of getting more affordable EVs into the marketplace as they will be crucially important in achieving federal and state-level goals for mass EV adoption. If mainstream middle-class consumers can’t afford them, EVs cannot become truly mainstream vehicles.

U.S. Light Vehicle Sales Forecasted to see a 1 Million Unit Increase for 2023

by Ed Kim, President and Chief Analyst

AutoPacific recently released its forecast of U.S. light vehicle sales, predicting 2023 will reach a year-end total of 14.8 million units sold. Up from a disappointing 13.8 million units sold in 2022, the 1-million-unit increase can be attributed to a few factors, including continued supply chain recovery, and electric vehicle (EV) growth. Supply chain issues are continuing, but at the same time they are easing as well, presenting the main driver for increased sales in 2023. We predict a 5-year peak growth is reached in 2026 as sales level out as pent-up demand, originating from both pandemic-induced supply issues and the looming recession, is fulfilled.

AutoPacific's annual forecast of U.S. light vehicle sales predicts 14.8 million units sold in 2023, increasing to 16.7 million units in 2026.

Introduction of New, Inexpensive Mainstream EV Models Fuels Growth

EVs accounted for 5.6% of total U.S. light vehicle sales in 2022, up from 3.3% in 2021. Of those 2022 sales, 20% came from luxury brand EVs, a new high since EV sales began over a decade ago. Starting in 2023, AutoPacific predicts an increase in mainstream EV market share with the introduction and sales growth of new, inexpensive mainstream models like the Chevrolet Equinox EV and Tesla’s promised sub-$30,000 entry EV.

These new, inexpensive mainstream models will help grow EV sales beyond the affluent early adopters of today to the mainstream consumers that will ultimately be critical for widespread adoption of EVs.

While vehicle sales growth is expected in 2023 and a few years beyond, all indications are that the United States continues to face the threat of a recession. AutoPacific expects this potential recession to be relatively mild; however, the severity and its impact on this year’s auto sales remain a wild card.

High Fuel Prices Likely to Impact Vehicle Type Before Powertrain

by Ed Kim, President and Chief Analyst

Since 2005, AutoPacific has conducted a bi-monthly online survey designed to measure the impact of fuel prices on consumers’ vehicle purchase decisions and driving behavior. Our Fuel Price Impact Study (FPIS) puts years of trend data to work to understand how consumers react to fluctuating fuel prices and how the impact has changed over time.

Historically, AutoPacific’s data have shown vehicle owners to be very tied to their current vehicle type. Whether a luxury brand owner or a mainstream brand owner, next vehicle intentions often mirror the current vehicle, or at least remain in the same macro category (car, truck, SUV, minivan). Lifestyle and family dynamics dictate vehicle segment, and for many, that means they’re locked into a specific vehicle type for 5-10 years.

Independent of fuel prices, AutoPacific’s Future Attribute Demand Study (FADS) asks respondents what type of vehicle they intend to purchase next. While current luxury brand car owners are slightly more committed to their current segment, more than 70% of all current owners intend to stay within the same macro segment, with the exception of Mainstream Large SUV/XSUV 2-row owners, who may be more likely than other SUV/XSUV owners to migrate to a car or truck next time.

Whether a luxury brand owner or a mainstream brand owner, next vehicle intentions often mirror the current vehicle, or at least remain in the same macro category.

What happens when fuel price is added to the mix?

When asked about the impact of fuel prices on their next vehicle type and powertrain intentions in AutoPacific’s bi-monthly FPIS, only 24% of current luxury brand owners and 21% of current mainstream brand owners say higher fuel prices would change their next vehicle type. The catch? Fuel prices must increase by approximately $1.25/gallon from where they are now for that to happen. Respondents are more likely to change powertrain type, but at a higher fuel price than for vehicle type.

Current luxury brand owners say it would take a fuel price of $5.96 per gallon (median) for them to change powertrain type – a $1.86/gallon increase over the price they’re currently paying. Numbers are similar for current mainstream brand owners, who would change powertrains at a price $2.05/gallon higher than what they’re currently paying.

Right now, a relative lack of alternative powertrain choices within vehicle segments means that it’s often easier for a consumer concerned with fuel economy to stick with a gasoline engine and migrate to a more efficient vehicle type. The ease of transition and comfort level with a different powertrain technology remains a challenge for the auto industry that only time can rectify.

Respondents are more likely to change powertrain type, but at a higher fuel price than for vehicle type.

Traditional Hybrids are Spearheading the Consumer Exodus from ICEs

by Robby DeGraff, Manager of Product and Consumer Insights

While motivation accelerates for an all-electric future from both inside and outside the automotive industry, new vehicle shoppers are more likely to purchase a traditional hybrid than a full battery-electric vehicle within the next three years, according to our 2022 Future Attribute Demand Study (FADS), which gauges consumer interest in more than 120 vehicle features and powertrain types. Automakers are quickly adding a flurry of EVs to their lineups to meet sweeping mandates and zero-emission goals, as well as growing demand, but range anxiety, lack of at-home or public charging infrastructure, and purchase cost remain a concern for many consumers.

Expectedly, demand for gasoline engines is the strongest at 52% of all new vehicle intenders in this year’s study, which also means that nearly half of all intenders plan to acquire something other than a gasoline powertrain. For electrified powertrains, demand is the strongest for traditional hybrid powertrains at 18%, while plug-in hybrid and EV powertrains each earn 11% intention among of all new vehicle intenders. Demand for diesel is scant at 5% while hydrogen fuel cell powertrains register just 3% demand.

Nearly 1/2 of new vehicle intenders plan to purchase a powertrain other than gasoline, with 18% intending a hybrid and 11% intending an EV or PHEV.

AutoPacific’s analysis suggests that the ease of purchasing and owning a traditional hybrid vehicle versus a more advanced EV is likely the primary reason behind their higher demand. Traditional hybrids eliminate many of the perceived “headaches” of owning an EV. There’s no added need for a consumer to invest in an at-home charging station, plan their driving route based on available public charging stations, or fear range anxiety. Furthermore, many of today’s hybrids promise combined average fuel economy approaching 60 mpg, while many hybrid mid-size SUVs can approach 40 mpg.

Not everyone may be set up to own an EV yet and for many new shoppers, traditional hybrids are still the most accessible and affordable way to go green. Hybrids have impressively evolved over the decades. They’re now found powering a much more diverse mix of popular bodystyles including pickup trucks, SUVs, and crossovers.

Price Plays a Large Role in Hybrid vs EV Demand

Sticker shock is another roadblock for EV intenders, but not for affluent consumers who may be better prepped to pivot away from ICE ownership. Data from this year’s FADS study reveal that among intenders of EVs, 48% plan to spend at least $50k on a new vehicle, compared to just 22% of traditional hybrid intenders. The truth is, there are actually quite a few great lower-priced EVs below $50,000 on sale right now, and on the way soon from multiple automakers, But many consumers may not be aware of them just yet.

Shoppers not wishing to open their wallets wide in order to lower their carbon footprint can find reprieve via efficient traditional hybrids that are readily available at more approachable price points. As such, there’s more desirability for them and less financial burden. Data show that among intenders of traditional hybrids, 78% plan to spend below $50k on a new vehicle, compared to just 52% of EV intenders.

AutoPacific data reveal that 48% of EV intenders plan to spend at least $50k on a new vehicle, compared to just 22% of traditional hybrid intenders. Conversely, 78% of hybrid intenders plan to spend below $50k on a new vehicle, compared to just 52% of EV intenders.

While demand for EVs is on the rise and more affordably priced models are entering the scene, there are many longstanding issues that need to be addressed over time in order for demand to outpace that of ICE and traditional hybrids. Until then, hybrid vehicles will continue to serve as the key pathway for consumers to collectively move towards a zero-emissions future.

Latest Study Reveals Wireless Charging Pad, Dash Camera In Top 10 Wanted Features; EVs as Path to Autonomy

by Ed Kim, President and Chief Analyst

What features do new vehicle intenders want to have in their next vehicle? We recently completed fielding the 2022 edition of our signature Future Attribute Demand Study (FADS), designed to help automakers and suppliers better understand consumer demand for more than 120 features and technologies. With insights from over 11,000 respondents who intend to purchase a new vehicle within the next three years, AutoPacific’s FADS not only identifies what features are wanted overall, but also identifies features desired at a segment, powertrain and demographic level, while also collecting psychographic and in-vehicle activity insights from all respondents.

The 2022 FADS reveals a strong top ten mix of features from every category, with wireless charging pad for front passengers landing at number one, followed by sunroof/moonroof, all-wheel drive/4x4, dash camera and front and rear parking sensors. Having such a variety of features land in the top ten highlights the need for automakers to look at the big picture and understand that it’s not all about safety, or comfort, or infotainment, but providing a combination of features that meet the many needs of consumers.

Top 10 Features Desired by New Vehicle Intenders

Are Alternative Powertrain Vehicles the Path to Autonomous and Other Advanced Vehicle Technology Implementation?

Sales of alternative powertrain vehicles, such as hybrids, plug-in hybrids and full-electric vehicles, are forecast to increase, in some cases exponentially, over the next five years, according to our 5-year sales forecast, providing automakers with many opportunities to implement the latest iterations of autonomous and advanced driver-assistance technologies. Alternative powertrain intenders have historically been on the cutting edge of technology and are typically more open to, and demanding of, advanced technologies. FADS data confirms this hypothesis and really reveals how electrified vehicles can truly reshape the vehicle and driving experience of the future.

Features with the highest percentage point different in demand between gasoline and EV intenders

Among the features with the highest percent difference in demand when comparing gasoline intenders to EV intenders, are four autonomous driving features and three advanced driver-assistance features. In most cases, feature demand incrementally increases from gasoline to hybrid, PHEV, and then to EV intenders. Additionally, demand is greater from EV intenders for all but two surveyed features: heated front seats and sunroof/moonroof, which both fall about even with gasoline intender demand. With so much opportunity for feature implementation, it’s an exciting time to be a manufacturer of EVs.

Healthy SUV Growth Forecasted Despite High Fuel Prices

by Ed Kim, President and Chief Analyst

SUVs, large or small, are here to stay, despite rising fuel prices. AutoPacific recently asked over 300 current SUV owners how high fuel prices would affect their next vehicle purchase decision. The survey, issued bi-monthly to AutoPacific’s proprietary panel of respondents, is designed to gauge consumer reactions to fuel prices over time. Findings reveal that current high, or higher, fuel prices would cause the majority of current SUV owners (45%) to consider a hybrid or plug-in hybrid (PHEV) SUV or Crossover, while 27% would consider an EV SUV or Crossover, and 29% would be unaffected. Most new traditional gasoline SUVs get much better fuel economy now than they did when fuel prices spiked in 2008 and caused a shift in the market. Couple that with an influx of hybrid, PHEV and EV SUV offerings and consumers have so many choices that they don’t have to downsize or change vehicle types.

Current SUV owners would prefer to consider an alternative powertrain SUV or crossover than downsize or change vehicle types.

Alternative Powertrain SUV Market Share Growing at a Higher Rate than Overall SUV Market Share

According to AutoPacific’s annual forecast of U.S. light vehicle sales, SUVs will continue to dominate the market, reaching over 60% market share in 2027. Additionally, AutoPacific’s most recently issued forecast shows SUVs will make up over half of alternative powertrain market share in 2023 and beyond, and alternative powertrain SUVs will account for over a quarter of the total market by the end of 2027. While SUVs continue to take over the new vehicle marketplace, alternative powertrain SUVs will continue to make up more of those SUV sales. In 2021, alternative powertrain SUVs made up 16.4% of total SUVs sold in the U.S. By 2027, AutoPacific expects they will make up 42.6% of all SUVs sold, giving SUV shoppers many options from which to choose.

Alternative powertrain SUV share of the overall market is growing at a faster rate than overall SUV market share.

Latest AutoPacific Forecast Shows a Gloomy 2022, But Share of Higher Priced Segments Grows

Due to continuing supply chain issues that remain a major impediment to industry sales recovery, AutoPacific is expecting an underwhelming 2022 with total U.S. light vehicle volumes at about 15.5 million units. Consumers can expect continued low inventories at dealerships and dealer markups resulting in higher transaction prices, and rising interest rates will have further negative impact on their purchasing power. As transaction prices rise, people who are acquiring new vehicles during this time are likely to be more affluent, so market share of higher-priced segments, such as Luxury SUVs and Pickups, is forecast to grow this year even as supply remains constrained.