Expiring Federal Tax Credit for EV Purchases Will Dampen EV Adoption

by Ed Kim, President and Chief Analyst

Our latest data and forecast EV sales reveal the considerable impact of the upcoming elimination of the Federal tax credit. The recent passing of H.R.1, the One Big Beautiful Bill Act of 2025, includes the elimination of the Biden-era Federal tax credit for EV purchases and leases that can currently save the consumer up to $7,500 off the purchase price of a full battery electric vehicle, plug-in hybrid vehicle, or hydrogen fuel cell vehicle. The impact of the repeal, which goes into effect after September 30, will no doubt be consequential as it effectively raises the cost of EVs significantly, making them less affordable to many interested shoppers.

Data from AutoPacific’s newly released 2025 Future Vehicle Planner show that about a third of new vehicle shoppers who would consider an EV as their next vehicle say that they are very aware of the tax credit and would buy or lease a new EV because of the tax credit. This represents a 2%-point increase over 2024. Furthermore, awareness of the soon-to-expire tax credit is greater than last year, with 79% of EV considerers in 2025 saying they are aware of the tax credit, compared to 75% in 2024.

The elimination of the tax credit comes at a particularly unfortunate time for the upcoming wave of what were to be affordable EVs. AutoPacific’s Future Vehicle Planner data have shown year after year that affordability is one of the biggest barriers to EV adoption, with 32% of EV rejectors in 2025 saying the cost to purchase or lease an EV is too expensive and 35% saying lower vehicle prices would make them reconsider. Automakers responded to this with a spate of affordable EV models launching over the next few years, but unfortunately, these models will no longer benefit from the tax credit, and most if not all of them will also be impacted by tariffs either on the vehicles themselves, or their parts and materials.

As such, we expect EV adoption rates to flatten considerably as the price of entry into the EV market increases by as much as $7,500 just on the elimination of the tax credit alone, even without accounting for other increased costs stemming from recently imposed tariffs on imported vehicles, parts, and raw materials. The EV market in the U.S. is headed for a rough patch with market share growth stalled due to multiple factors related to lack of affordability. Consumer awareness of the Federal tax credit for EV purchases and leases as well as intent to buy an EV because of it have grown since 2024, but consumers interested in one will soon find them significantly less affordable.

AutoPacific’s Sales Forecast Service’s newly updated U.S. EV forecast calls for 8% EV market share in 2025 and 2026, the same as in 2024. Without continued tax credits, we now expect EVs to reach about 12% market share in 2029, significantly down from our EV forecast from a year ago of 25% market share by 2029. Consumers who are interested in acquiring a new EV may do well to start shopping soon, before the Federal tax credit expires after September 30.

Our Newest Future Attribute Demand Study (FADS) Shows Increase in Demand for Autonomous Driving and ADAS Features

By Deborah Grieb, Director of Marketing and Insights; Ed Kim, President and Chief Analyst

The results of AutoPacific’s 2025 Future Vehicle Planner are in with preliminary data showing some large changes in demand for many features, including higher demand for some autonomous driving and ADAS features over 2024 results. Our Future Vehicle Planner, a respected source widely used by automotive product planners, marketers and technology development teams, contains both the Future Attribute Demand Study (FADS) and the EV Consumer Insights Study. Now in its 4th year, the study surveys licensed drivers ages 18 and older in the U.S. who intend to acquire a new, not used, vehicle within the next 3 years.

With responses from nearly 18,000 new vehicle intenders, the 2025 Future Vehicle Planner has AutoPacific’s largest sample to date for this study and covers a multitude of new vehicle characteristics, as well as extensive psychographics and demographics, to help automakers and suppliers make informed vehicle and product decisions.

Top Wanted Features Include Autonomy, Advanced Driver Assistance Systems (ADAS)

The most wanted feature for 2025 with demand from 43% of new vehicle intenders is hands-off semi-autonomous driving for highway use only with driver attention required, with in-market examples including GM’s Super Cruise and Ford’s BlueCruise. While there are levels of autonomy higher than this, demand for the feature increased 20%pts over 2024, speaking volumes about the future direction of features that allow the vehicle to take more control of driving.

Tied for first, also with demand from 43% of consumers, is a more common ADAS feature, rear automatic emergency braking. Falling into the Driver Assistance category, this feature is defined in the survey as, “when approaching an obstacle while reversing, the system will alert the driver while braking the vehicle to prevent moving further rearward and colliding with the obstacle.” Having become more commonplace in both mainstream and luxury vehicles, consumers have had more opportunities to experience the real safety benefits of helping avoid rearward collisions with passing vehicles or pedestrians.

Six other autonomous driving and driver assistance features make the top 15 most wanted features in 2025, including: adaptive cruise control with active lane centering AND stop and go, lane change assist, hands-off, fully-autonomous driving for all speeds to a pre-specified destination with no steering wheel and NO option to manually drive the vehicle, rear cross-traffic alert with automatic emergency braking, emergency evasive steering assist, and hands-off, fully-autonomous highway and city driving to a pre-specified destination with option to still drive the vehicle when desired, driver attention NOT required.

Whether for Convenience or Safety, New Vehicle Intenders Have More Trust in Autonomy

AutoPacific’s research has shown that autonomous driving and ADAS features have struggled to capture strong demand from new vehicle intenders over the past couple of years primarily due to unproven technology and lack of consumer comfort with their vehicle having control over situations. It seems the tune has shifted as some technologies become more prominent in new vehicles and consumers gain experience and confidence in them. 2025 data show an increase in the percentage of new vehicle intenders overall who say they “trust advanced car safety systems that prevent accidents automatically,” as well as those who agree with the statement, “I want my vehicle to be able to safety drive itself so I can do other things (read, watch movies, work, etc.).”

A younger future vehicle buyer is also a major factor as our data over the years has shown that Generation Y and Z consumers have higher comfort with autonomous driving and ADAS features and also higher demand. The median respondent age for the 2025 Future Vehicle Planner is 39, compared to 44 in 2024. As younger generations continue to enter the new vehicle market, they bring more knowledge of technology and enthusiasm for having it in their vehicle.

Despite fully-autonomous driving capability not yet being applied in commercially available passenger vehicles, consumers are starting to be able to experience the technology at varying levels through robotaxis in a few metropolitan areas, and in certain environments such as industrial parks and tourist attractions. With a global autonomous vehicle race underway, we believe increased consumer demand and confidence are great news for the U.S. market.

New Must-Have vs Nice-to-Have Exercise Reveals Top Demanded Features Can Make or Break the Deal

New to the study in 2025, AutoPacific asks respondents if the features they say they want are must-haves, meaning they won’t buy a vehicle without it, or nice-to-have and could be sacrificed due to price or availability. Preliminary data reveals all-wheel drive, blind spot cameras, power front driver’s seat, parking sensors for the front and rear, and wireless Apple CarPlay/Android Auto are most likely to make or break the deal with greater than 60% of respondents who want those features saying they are must-haves. These are commonly available and popular features with high installation rates in modern vehicles.

But new and emerging features with strong appeal are by their nature not common yet, and many of them are less likely to be “must-haves” despite strong consumer demand. This explains why hands-off semi-autonomous driving for highway use only with driver attention required, the top demanded feature overall, is only a must-have for 33% of consumers. Great new ideas can be very appealing to consumers, but until they are commonplace, consumers are less likely to insist on having those new features in their next vehicles. Automakers that offer such highly demanded but uncommon features stand to have a competitive edge over their competition.

As Affordability Woes Rise, Budget-Conscious Vehicle Shoppers Want to Keep it Simple

by Robby DeGraff, Manager of Product and Consumer Insights; Ed Kim, PResident and Chief Analyst

Summer is here and the automotive industry continues to be caught in the middle of chaos, fending off rare-earth minerals shortages for parts, ever-changing tariff guidance on imported vehicles and parts that necessitate relocating production locations, general inflation, and punishingly high interest rates. It’s not the easiest time to be a consumer shopping for a new vehicle. To combat these threats, automakers may need to get creative by streamlining their current offerings and do whatever it takes to keep affordability in check.

Whether it be trading automatic climate control for manual operation or leather-wrapped steering wheel for a polyurethane material, we’ve seen examples of de-contenting and packaging shuffling before. Tesla recently moved forward on previously announced plans to offer a base Cybertruck that eliminated almost $10,000 worth of standard equipment, swapping AWD for a RWD footprint and leather for cloth seats, removing a rear touchscreen, and downsizing from 20-inch to 18-inch wheels, amongst other adjustments. Both Mazda and Hyundai have added or reintroduced new entry-level trims, while MINI on the other hand occasionally offers a limited-release, value-focused Oxford Edition for its Cooper family, bundling together desirable features and unique styling elements at an MSRP oftentimes thousands of dollars less than the nameplate’s existing base trim.

Basic, Less-Extravagant Features are “In”

As average new vehicle transaction prices climb closer to that $50,000 ceiling, automakers need to ensure there’s product available for consumers who want to stay out of the used market yet spend as little as possible in the new one. Data from AutoPacific’s syndicated Future Attribute Demand Study (FADS) which surveyed over 14,000 new vehicle intenders about their interest in more than 160 features and technologies, gives us a clear idea of what matters to those shoppers who plan to spend less than $35,000 on their next new vehicle: simplicity. Upgrades like nicer, plusher seat upholstery choices, flashy exterior styling enhancements, and more immersive cabin technology just aren’t as desirable amongst these shoppers who would rather keep their monthly payments low and their vehicles sensibly equipped.

At the same time, even though many of these listed features lack strong demand, they’re commonly found on popular vehicles that carry MSRPs within that coveted $25k-$35k price bracket.

Front wheel drive, base stereos, cloth seats with various manual adjustment, and analog gauges are “in,” for these more frugal shoppers, so the array of standard equipment found on entry- and mid-level trims of today’s popular vehicles within the $25,000 to $35,000 price range may need to be reexamined as consumers tighten their belts in the face of economic uncertainty.

Several must-have features could likely be removed to lower a vehicle’s total cost and consequently better match the more limited budgets and needs of those active in this particular price bracket.

It’s no surprise that most of top ten most-wanted features amongst vehicle shoppers planning to spend between $25k-$35k are nearly identical to those of shoppers planning to spend north of $35k, however, there are clear differences in prioritization and demand for some. For example, 34% of $25k-$35k vehicle shoppers want a sunroof/moonroof (ranking it their 6th most-wanted item), whereas $35k+ vehicle shoppers have a greater interest in things like driver profile settings, a household 110v outlet, and even sunshades for rear passengers.

While there’s a starker difference in demand for numerous comfort and convenience features between these two price brackets, data show that demand for common safety features, both passive (like parking sensors front and rear at 29% vs 32%, respectively) and active (rear cross traffic alert with automatic emergency braking at 30% vs 32%, respectively), is relatively similar. However, when it comes to driver assist features that allow the vehicle to take on more driving tasks, those $25k-$35k buyers are definitely not as interested in these costlier, more advanced technologies as those planning to spend more than $35k. For example, $25k-$35k vehicle shoppers are 6%-7% pts less interested in adaptive cruise control with active lane centering, regardless of if it has stop-and-go functionality. 

What is the Ideal $25k-$35k Vehicle and Who Would Buy it?

With unique needs, wants, and priorities, just who might be the typical $25k-$35k vehicle buyer and what might that $25k-$35k vehicle look like?

Per AutoPacific data, many shoppers in the $25k-$35k price bracket are more open to sedans compared to shoppers looking to spend over $35k due to their greater affordability, and they’re more likely to want a tried-and-true gasoline engine. Note that while 88% of these new vehicle intenders currently own an internal combustion engine vehicle, 20% want their new $25k-$35k vehicle to be hybridized, and only about 5% want it to be fully electric. For more than a third of these buyers (35%), this will be the first time they have ever purchased or leased a new vehicle, upgrading from their current vehicle that’s, on average, more than 11 years old. 

On the outside, their ideal $25k-$35k vehicle doesn’t have flashy exterior enhancements like LED welcome lighting, illuminated brand logos, or an expansive glass roof. On the inside, the cabin is likely upholstered in cloth, with manual adjustment for the seats, a cabin layout that prioritizes practicality over design with more buttons and rotary dial controls, and an analog gauge cluster next to a modestly-sized center touchscreen that doesn’t have embedded factory navigation. Despite a more restricted budget, buyers of this $25k-$35k vehicle still want several of the popular features and technology found on higher-priced vehicles including wireless charging pads for smartphones, heated and ventilated front seats, a common 110v outlet, driver profile settings, and active safety features like rear cross-traffic alert with automatic emergency braking, rearward automatic emergency braking, lane change assist, and rain-sensing windshield wipers. Features like a head-up display or upgraded branded stereos (Bose, Harman Kardon, etc.) aren’t necessary, nor are immersive connected services that require an additional paid data plan to use.

These buyers have a median household income of $50,000, live in the suburbs, have no children in their households, and are either Millennials (31%) or Baby Boomers (29%), many of the latter taking into account their fixed incomes. 57% are women. They drive less than 20 miles per day and intend to use their $25k-$35k vehicle for tasks like commuting, longer road trips, relaxed/pleasure driving, and highway driving. A third lug around their pet(s) and an adult front-seat passenger, but don’t plan on using their backseat as frequently. Generally, these buyers are a bit more conservative and humble. While more than 60% do want their $25k-$35k vehicle to come equipped with technology to help prevent careless driving mistakes, there’s less interest in various ADAS systems compare to those planning to spend more than $35k.

While automakers can — and should — continue to offer upgraded and aspirational features, amenities, materials, and technology even on more budget-focused products, it’s important to ensure the availability of sensible, modestly equipped versions of these vehicles during these times. Maintaining a persistent focus on delivering value to entry-level shoppers is paramount, especially if an automaker wants to create, build, and retain a relationship when that entry-level buyer in time decides to jump up to the next price bracket when shopping.

It’s good for models in that price range to offer some fancier, lower-demand features, but those should be optional and limited to higher trim levels, which can also serve to capture customers of bigger and nicely-equipped models who may be downsizing into more affordable segments as they tighten their belts.

Exclusive Insights from Our Interview with Qualcomm's Anushman Saxena

by Ed Kim, President and Chief Analyst

Automakers and the automotive supplier community have traditionally excelled in designing and engineering vehicles and their mechanical components. However, over the last decade and a half, the automotive industry has become inextricably linked to the tech world, as many of the latest innovations are outside the traditional realm of powertrains, chassis, and design. An automaker’s success today is heavily dependent on the ability to bring tech innovations to market in ways that are relevant to today’s new vehicle consumer.

Qualcomm, a company more associated with wireless technology and smartphone chipsets than automotive products, has quietly become a hugely important player in the automotive supplier space with its Snapdragon System on Chip (SoC) products being adapted for automotive, allowing the seamless integration of digital cockpits, infotainment, and ADAS features into the latest vehicles.  I had the opportunity to sit down with Anshuman Saxena, VP and Head of ADAS/Autonomous Driving Products at Qualcomm, to get further insights.

Saxena and the Snapdragon team have been discussing at length how to address affordability. Its new Snapdragon Ride Flex product, which combines the processing of ADAS and cockpit functions onto a single chip (instead of multiple chips) to significantly reduce costs, is designed to help address this.

Consistent with data from AutoPacific’s syndicated Future Attribute Demand Study (FADS), Saxena says that younger consumers expect advanced technology in new vehicles today, regardless of price point. Young consumers have grown up with technology as a given in their lives, so the traditional model of waiting to have the “cool stuff” until they have reached a certain level of financial success later in life does not apply anymore.

A 16-year-old owns and uses the same iPhone as the wealthiest CEO, so young people expect to have the latest technologies in vehicles they can afford. Quips Saxena, “And why would they not want to have features that cars like Tesla have?”

Snapdragon Ride Flex, with its single SoC, helps address this. “The Flex…has better cost affordability because you are packing everything into a single computer, improving the experience,” as well as addressing cost, according to Saxena. However, Saxena believes that above all, safety is the most important attribute that Snapdragon must bring to the table.

Saxena says, “Safety cannot be compromised. Safety is the most critical thing in anything we do, and comfort level functions start becoming (a second) value add that consumers would want to use, and then the third important thing is user experience.”

In other words, comfort and user experience are of supreme importance; however, Snapdragon’s technologies must, above all else, integrate and process various inputs (such as ADAS and cockpit features) in a way that ensures the safe and reliable operation of these technologies. With numerous high-profile real-world mishaps involving ADAS and semi-autonomous driving features over the last few years, proven safety is of paramount importance to both automakers and consumers alike.

Perhaps not surprisingly, China is the big rollout market for Flex. As Saxena says, “Where do you see a lot more democratization of these (technologies)? You…see it in China first, right? Our Flex take rate is going to be much higher in China (because) cost is a big driver, and speed is a big driver. So that will drive the phenomena which will come in the rest of the world…but yes, we will see more in China to start.”

At the moment, Saxena sees Level 2+ (supervised eyes-on hands-free driving such as Tesla’s FSD or BYD’s God’s Eye) as the main focus for autonomous drive features for the foreseeable future as Level 3 (eyes-off, hands-off) requires extensive validation, redundancy, and safety mechanisms.

However, Saxena says that Snapdragon hardware is very much ready for Level 3. “Our hardware is designed for the highest level of safety requirements; we have built our software to those requirements,” says Saxena. However, he also notes that achieving Level 3 autonomy to work safely and reliably is more about validation, testing, and redundancy at the OEM level than it is about the Snapdragon hardware itself.

Going forward, Saxena anticipates a gradual evolution of autonomous driving technologies for privately owned vehicles (as opposed to robotaxis) and a continued industry focus on enhancing safety and the user experience. He also believes that China will continue to lead in the early adoption of advanced ADAS technologies, as evidenced by the sheer number of L2+ semi-autonomous systems already on sale there, meaning that L3 autonomy is likely closer. In North America and Europe, however, L3 is “probably later, towards 2030 or even later, and maybe 5% max of total sales” for the foreseeable future, according to Saxena.

One thing is certain: while Qualcomm and its Snapdragon SoC systems are less known in the traditional automotive space, that is changing rapidly as its technologies and solutions are firmly geared towards the future of automotive innovation.

The fusion of the automotive and tech industries in recent years has yielded some of the most groundbreaking innovations in the automotive space in decades, and tech suppliers like Qualcomm will be among the most important in delivering the innovations that today’s new vehicle shoppers want.

Fresh Survey Data Reveals How Tariffs May Impact New Vehicle Buyers

by Deborah Grieb, Director of Marketing and Consumer Insights

The automotive industry is entering a time of significant change due to the enactment of tariffs that will affect vehicle pricing and production, sales volumes, and more. A new survey finds that consumers are in fact concerned about the effect of implemented tariffs on the cost of living and the economy, and many intend to make some changes to their future big purchase plans. The survey of nearly 2,000 U.S. residents ages 18 and older specifically sheds light into the impact of tariffs on vehicle purchase plans, revealing that 75% of respondents who said they plan to purchase a vehicle within the next year will change those plans in some way, whether it be choosing a cheaper vehicle or waiting until things are more stable, if vehicle prices rise.

When we asked about planned major purchases within the next year, 80% of respondents said they plan some type of large financial commitment, with vacations being the most likely purchase (44%), followed by home renovations (34%), hobbies (33%) and a vehicle purchase (33%). Of those 33% who are planning a vehicle purchase, 59% intend to purchase a new vehicle, 27% plan used and 14% are currently unsure. The big question for the automotive industry: how might those plans change if vehicle prices rise due to tariffs?

While rising vehicle prices are likely to have a negative effect on U.S. new vehicle sales, not everyone will be leaving the market. We believe many still plan to make that purchase but have changed their expectations – some will simply pay more, some will choose something cheaper.

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Source: AutoPacific Tariffs and Vehicles survey, March 2025

But the real concern is the potential of movement to the used car market and purchase delays, both resulting in reduced new vehicle sales. The study reveals that 20% of those intending to purchase a new vehicle will consider buying used instead of new and 23% may wait to purchase a vehicle until things are more stable.

Consumers leaving the new vehicle market, even temporarily, would lead to devastating blows to the automotive industry, but there are options for consumers, automakers and finance companies that could keep new vehicle intenders in the market.

According to Experian, the average term for new car loans is 68 months, yet 15% of new vehicle intenders say they may choose to finance for a longer term to keep their monthly payment down, and 16% may shift to leasing instead of buying if they can get a good deal. Even among those who said they will wait to purchase a vehicle until things are more stable, 20% are open to leasing instead of buying, 14% are open to financing for a longer term, and 27% may choose the same vehicle they planned, but with fewer features and options. It’s also notable that 16% of new vehicle intenders said they would buy a vehicle sooner than originally planned to avoid rising costs.

Despite the Threat of Tariffs, Many New Vehicle Intenders Are Willing to Pay More…but How Much More?

There are significant numbers of new vehicle intenders who simply expect to pay more for their vehicle than originally planned, or who will finance more than planned. For those new vehicle intenders who said they will pay more than originally planned, more than half (52%) say they’ll pay $3,000-$5,000 more. For those who will finance more than originally planned, 54% will pay less than $125 per month more, with the majority (20%) saying they’ll only pay between $100-$124 more per month.

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Political Leanings Don’t Impact Concerns About a Recession or Rising Costs of Everyday Goods

Republican and Democrat respondents alike say they are familiar with how tariffs work, 90% and 92% respectively, but Republican respondents are less likely to be concerned about rising costs having an impact on them personally than Democrat respondents. However, both respondent groups worry about rising costs of living and an economic recession being in their future, with the biggest concern being the higher price of everyday goods, like food, gas, etc. Republican respondents’ concerns tend to be less intense overall, being less likely to say “very concerned” to all presented scenarios and more likely to say “somewhat concerned.” Republican respondents are also less likely to change their vehicle purchase plans with 31% saying rising vehicle prices as a result of tariffs will not affect their vehicle purchase plans, compared to 21% of Democrat respondents.

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Older Consumers are the Least Concerned about Tariffs

Interestingly, the older consumer groups surveyed, those age 60 and older, as well as those who are retired, have the least concern about tariffs personally affecting them. As most older consumers have likely paid off their mortgage and possibly their vehicle loan, only 39% are concerned about paying their monthly mortgage or rent compared to 73% of respondents ages 18-29. Similarly, only 24% of respondents ages 70 and older are concerned about paying their monthly vehicle loan compared to 64% of respondents ages 18-29. However, the likelihood that older respondents are on a fixed income may contribute to their concerns about the rising cost of everyday goods and an economic recession; both concerns they have in common with the younger respondents.

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Consumer Familiarity is Key to Demand for Advanced Driver-Assistance Systems (ADAS)

by Robby DeGraff, Manager of Product and Consumer Insights; DEborah grieb, director of marketing and insights

‘AutoPacific’s Future Attribute Demand Study (FADS) measures consumer demand for 163 features, including 13 ADAS features such as Emergency Evasive Steering Assist and Unresponsive Driver Stop Assist. When looking at consumer demand for these features over the past few years, AutoPacific has noticed that demand has become quite stagnant, which begs the questions, why and what can automakers do to increase this demand? To answer these questions, we reached out to over 500 current vehicle owners and asked about their familiarity and experience with various ADAS safety features, as well as their interest in having these features in their next new vehicle. As is the case with many of today’s popular infotainment and convenience features, awareness and first-hand experience using various ADAS safety technology was found to result in a greater interest rate amongst consumers.

In this new short survey fielded in February 2025, AutoPacific presented 19 different ADAS features and their definitions to current vehicle owners ages 18 and older to gauge their interest, familiarity, and perception of these advanced systems. While real-world usage may be limited, there is strong awareness and consequently strong demand for many of these more advanced ADAS features. Some premium ADAS features, like Automatic Lane Change Assist, are often reserved and found on more costly upscale vehicles, while the remaining features surveyed are readily available across the industry at all price points.

Demand for ADAS Features Dependent on Awareness Moreso than Experience

There’s a marked difference in consumer awareness of an ADAS feature and actual real-world usage. While this is especially true for certain ADAS features that are relatively new and less accessible due to their pricing or availability at time of purchase, a lack of real-world usage of a well-known ADAS feature can also be attributed to the possibility that the consumer simply hasn’t had a situation to experience the feature first-hand, even if their vehicle is equipped with it. Some ADAS features, like Automatic High-Beam Headlights and Adaptive Cruise Control with Active Lane Centering engage often throughout the course of a consumer’s drive, resulting in 62% and 57%, respectively, of respondents who have heard of the features saying they’ve also experienced them. Conversely, ADAS features that typically only intervene in the event of a required emergency maneuver, like Cyclist and Pedestrian Detection or Safe Vehicle Exit Assist have a much lower percentage of use, 23% and 11%, respectively. As such, in many cases demand for the feature correlates closely with awareness.

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A rather unique exception is Night Vision, a feature with moderate awareness (44%) and very low real-world usage (11%), yet strong interest amongst consumers with almost 60% of consumers wanting it on their next new vehicle. A helpful feature that’s been around for decades since pioneered by GM in the 1990s, today’s Night Vision systems are more accurate and advanced than ever before, some being able to recognize and alert a driver of possible objects, animals, or pedestrians in darkened conditions. These systems are scarce, however, and are just starting to trickle down to mainstream brands and vehicles, but that hasn’t slowed consumer interest based on the perceived benefit of improved visibility. Credit clever advertising both on social media or television and word of mouth, as we believe many consumers know about these safeguarding features, even if they have yet to use the feature in the event of emergency. Some of them are true lifesavers, and once one of these ADAS features activates, that’s bound to boost trust in the technology itself and quickly turn into a “must-have” for the driver.

Younger Consumers Have Highest Awareness of ADAS Features but Not Necessarily the Highest Interest

Overall, consumers have the highest awareness of ADAS features that vehicles have been equipped with for many years, like Blind Spot Cameras (73%) and Rear Cross-Traffic Alert With Automatic Emergency Braking (63%). Awareness drops sharply for newer, more advanced ADAS features, like Unresponsive Driver Stop Assist (25%) or Emergency Evasive Steering Assist (34%), that have only recently started to trickle into today’s vehicles. Younger consumers under the age of 40, however, have higher awareness of all features surveyed, including the newest, and least-known features, compared to those 40 and older. Furthermore, the gap in awareness grows with age for several of these newer, more advanced ADAS features. For example, 89% of respondents between the ages of 18-39 say they’ve heard of Automatic Lane Change Assist compared to just 47% of those age 60 and older.

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Yet while younger consumers are more familiar with all surveyed ADAS features, that doesn’t translate into higher demand across the board for them when compared to older consumers. Historically, when looking at AutoPacific’s FADS data, demand for features that enhance visibility has been higher from older consumers than younger consumers. We see the same holds true here where demand is higher from respondents ages 40 and older for Night Vision, Blind Spot Cameras, and Rearward Automatic Emergency Braking – all features that assist the driver with their ability to easily see around them.

Additionally, when looking at feature reception by age group, whether it be younger generations or those north of the age of 60 years old, there’s positive sentiment for several popular ADAS features. For example, 74% of those under the age of 40 and 78% of those over the age of 60 stated they liked using Adaptive Cruise Control with Active Lane Centering AND Stop and Go. Interestingly, compared to those under the age of 40, those consumers over the age of 60 were more likely to report that many of the ADAS features they used made them feel much safer behind the wheel.

Constant Nagging, Lack of Adjustment Ability Can Lead to Lower Satisfaction

Just because a consumer has heard of and/or actually used a particular ADAS feature before doesn’t necessarily guarantee retention and desirability for it down the road. This proved to be especially true with common ADAS features that closely track a driver’s behavior like Speed Limit Warning and Distracted or Drowsy Driver Monitoring. Both ranked relatively high in awareness (7th and 5th, respectively), as well as real-world usage; however, demand is consequently low (16th and 11th respectively). These two features also have the highest percent of dissatisfaction from users with 18% of those who have experienced Distracted or Drowsy Driver Monitoring and 17% of those who have experienced Speed Limit Warning saying they didn’t like the feature.

It's important to note that for the two aforementioned ADAS features, as well several ADAS features that ranked much higher in terms of demand, consumers have to be able to adjust or change the sensitivity of the feature and have the option to turn it on or off. 44% of those who have used Speed Limit Warning felt neutral about it and 17% didn’t like it, mostly due to annoying nagging reminders and beeping alerts. In addition to complaints about it not working properly, nearly half of those who didn’t like Distracted or Drowsy Driver Monitoring complain of not being able to adjust or change the sensitivity. Alternatively, when asked about feedback on Rearward Automatic Emergency Braking, one of the top wanted ADAS features, some of those who have used it voiced concerns about the braking action being too abrupt or harsh, and the sensing too sensitive.

As more and more automakers fortify their lineups with expansive suites of standard ADAS features, it’s going to be of paramount importance that consumers have the flexibility to make adjustments that suit their preferences and comfort level.

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Trends and Highlights from Our Trip to CES 2025

by Deborah Grieb, Director of Marketing and Consumer Insights

The 2025 Consumer Electronics Show (CES) in Las Vegas was, as always, a spectacle of amazing new technological developments that boggle the mind. Of course, the AutoPacific team was on site to cover the latest automotive technology developments. There were clear themes that dominated automotive at CES, and best of all, AutoPacific’s studies, data, and services provide strong and actionable insights on all of these themes.

China:

Chinese vehicles and technology were on full display, amazing attendees with their technology, build quality, creative out-of-the-box features, and very appealing price points. In particular, the display by Zeekr, a Geely-owned cousin of Volvo and Polestar, blew atten dees’ minds, and the brand used the show to showcase not only their products, but also their global ambitions. CES served as the gateway for the booming brand to really introduce itself to industry attendees, with its introductory press conference at standing room only, followed by swarms of curious showgoers eager to sit in three of Zeekr’s products. Great Wall Motors’ display also impressed, and they are accomplished enough of an automaker that BMW uses their compact EV platform for its electric versions of the MINI Cooper and Countryman.

The threat to other automakers has been well documented, but what does the American consumer think? AutoPacific’s syndicated Future Vehicle Planner (FVP) suite of new vehicle shopper data and the studies generated from them show surprisingly high awareness and consideration for Chinese vehicles if they were sold Stateside. AutoPacific’s data on attitudes towards Chinese brands and vehicles is a crucial tool in developing strategies to meet the challenge from China head-on. Trade barriers will keep them out for only so long; the consumer has spoken, and the consumer wants Chinese vehicles. And Chinese automakers will figure out, sooner or later, how to gain entry into the U.S. market.

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Autonomous and ADAS Features:

Automotive inches ever closer to full autonomous driving, and the advances seen at CES this year were no doubt beyond impressive. But ultimately, what does the consumer think about autonomous driving and semi-autonomous ADAS features? AutoPacific’s Future Attribute Demand Study (FADS) asks the new vehicle shopper directly about their desire for L2 through L5 autonomy, as well as all of the ADAS features either in market or coming soon. Understanding consumer demand and their receptivity to various autonomous features is critical in building a business case for adopting these features in future vehicles.

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Software Defined Vehicles:

Software Defined Vehicle (SDV) features continue to make huge advancements, and there was no shortage of new SDV features and ideas shown at CES this year. Of course, SDVs often entail additional cost to the consumer after acquiring their new vehicle, and there is a fine line between perceiving value in software-defined features and feeling nickel-and-dimed. AutoPacific’s Future Attribute Demand Study (FADS) measures demand for a multitude of software-defined features with post-purchase costs (such as monthly subscription fees) clearly indicated to the survey taker. As SDVs are clearly a staple of the future automotive landscape, understanding consumer demand for these features at their likely price points is critically important in developing software-defined offerings to future new vehicle consumers that will delight and provide value.

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AI:

Of course, virtually nothing can be discussed today without some mention of AI. And certainly, AI is emerging everywhere in automotive, from autonomous drive features to intelligent assistants that can shape the drive experience based on the interpretation of the driver's mood, physical condition, and where they are driving to. Many of these AI-powered features are covered in the Future Attribute Demand Study’s (FADS) extensive battery of features, ranging from AI-powered voice assistants to AI-powered autonomous drive features.

Electric Vehicles:

Electrification is here to stay and there was no shortage of new EV technologies from batteries to motors to full electric drive units on display. EV technology is developing fast with new battery chemistries and more efficient motors providing big improvements in range and charge times. AutoPacific’s EV Consumer Insights study thoroughly covers attitudes towards EVs, charging, range, price, and many other EV-related issues with EV owners, EV acceptors, and maybe most important, EV rejectors. 

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Our Industry Analysis division specializes in competitive intelligence and sales forecasting. AutoPacific’s Competitive Battleground is an online service that provides detailed vehicle product intel on every vehicle offered or soon-to-be offered in the U.S. market, including EVs. AutoPacific’s Sales  Forecast Service offers detailed model-level EV, PHEV (including EREV), and hybrid forecasts, updated quarterly. These two services offer automakers with a complete view of the competitive EV market environment, both from a product perspective and future sales perspective.

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How Automakers Can Execute Successful, Desirable Three-Row Electric SUVs/XSUVs

by Robby DeGraff, Manager of Product and Consumer Insights; Ed Kim, President and Chief Analyst

Even as the U.S. vehicle marketplace faces the threatening possibilities of steep tariffs on imported vehicles and the elimination of helpful federal tax credits, automakers will continue to expand their EV offerings. In order to remain competitive, there’s a key segment strongly desired amongst many consumers wanting to go all-in on electrification: three-row crossovers and SUVs.

Data from AutoPacific’s 2024 Future Vehicle Planner, which surveyed over 14,000 consumers who intend to acquire a new vehicle within the next three years, revealed nearly half of all future three-row SUV/XSUV shoppers would consider purchasing one that’s specifically an EV and another 8% actually intend to do so – a high percentage considering the limited options currently available.

Electric Three-Row SUV/XSUV Segment Expected to Grow

With automakers spreading their mix of EVs across multiple segments, expect more three-row SUV/XSUV models in the coming years. AutoPacific’s North American Competitive Battleground, a continuously updated online service that tracks future product intel, shows significant growth in the number of three-row electric offerings in the coming years. As of December, consumers can pick from only seven electric three-row SUV/XSUV nameplates: the Volvo EX90, VinFast VF9, Tesla Model X, Rivian R1S, Mercedes-Benz EQS SUV and EQB SUV, and Kia’s EV9. Customer deliveries for a handful of other upcoming models, like Cadillac’s Escalade IQ, are also expected to commence by the end of 2024. Starting next year and beyond, more battery-powered three-row SUV/XSUVs are slated to arrive, both from mainstream and premium makes. 

Consumer data and insights from AutoPacific’s Future Vehicle Planner show that 59% of electric three-row SUV/XSUV intenders and considerers want to spend less than $50,000, indicating there are affordability barriers that need to be overcome as well as a need for more non-luxury electric three-row products. At the moment, the Kia EV9 and Mercedes-Benz EQB are the least expensive electric three-row SUVs/XSUVs with starting MSRPs starting in the $55,000 range. Clearly, the data indicate there is room in the market for more affordable three-row electric offerings.

According to our most recent forecast of U.S. light vehicle sales, fully-electric SUVs/XSUVs are expected to more than double in total light vehicle market share from 2024 to 2029, from 5.8% in expected this year to over 13% in 2029, while three-row fully-electric SUV/XSUVs specifically are forecast to nearly quadruple from well under 100,000 sales in 2024 to around 400,000 sales in 2029. All-electric three-row SUVs and crossovers are set to become one of the most important growth segments in the EV space. There is a perfect storm of life stage needs and EV acceptance that will power consumer interest and sales in this rapidly emerging space.

Who is the Electric Three-Row SUV/XSUV Buyer and What do they Want?

Data from our Future Vehicle Planner reveals Millennials are the most likely generation to want to go fully electric, and they are also very likely in their family-raising years. The typical consumer who would consider buying an electric three-row SUV/XSUV is a married female Millennial parent living in a single-family home in the suburbs and driving less than 30 miles per day. More than half of all shoppers and considerers believe they can have home charging equipment installed relatively easy and cost effectively, while a quarter are aware of possible required extensive, expensive electrical upgrades.

Consumers interested in an electric three-row SUV/XSUV are eager for the most modern technology available (including ADAS) and more than half are willing to pay more for an environmentally-friendly vehicle, but not necessarily willing to make trade-offs for that ownership. These buyers are fans of long road trips and shuttle children around, but also rely on their vehicle for commuting. While the brand of vehicle may not be as important of a factor amongst these particular shoppers at time of purchase, the mix of desired features does matter.

Following a similar trend for other vehicle segments and powertrains, intenders and considerers of electric three-row SUV/XSUVs are interested the most in features that bring added comfort and convenience. More than half want wireless charging pads for front and rear passengers, followed by other comfort and conveniences like heated and ventilated/cooled front seats, a household 110v outlet, an integrated air compressor, and a refrigerated center console. Other helpful must-haves like a hands-free power liftgate, second-row captain’s chairs, and power-folding rear seats (both 2nd and 3rd row) are also desired by more than a third of these shoppers. Even 30% are interested in swiveling second-row captain’s chairs, a feature recently showcased on Hyundai’s new 2026 IONIQ 9 that will be offered globally but not for the U.S. market.

There is also strong demand for features and technology that are exclusively for EVs, primarily features that increase convenience, charging speed, and range. Just like we’ve seen with the current crop of gas and hybridized three-row SUV/XSUVs, the competition is fierce and this notion of brand loyalty isn’t as relevant when cross-shopping. Oftentimes, it really does come down to which vehicle has the hottest features and tech a consumer can get their hands on right now. While EVs, regardless of bodystyle or seat count, can entice consumers with striking new innovative features, AutoPacific data shows it’s imperative they still be loaded with popular, common must-haves found on ICE vehicles that these new consumers may be exiting.

Political Influence on Electric Vehicle Interest is Waning According to AutoPacific Study

by Deborah Grieb, Director of Marketing and Consumer Insights

According to data from AutoPacific’s recent EV Consumer Insights Study, political identity is still factor in electric vehicle (EV) ownership, but it may be becoming less of a factor for future EV acceptance. our study of over 12,000 EV owners, acceptors and rejectors was conducted in June 2024 and investigates consumer sentiment regarding EVs, from ownership reasons to rejection reasons, including the role of cost, charging, the environment, and politics. EVs continue to appeal to a larger and more mainstream audience, with sales and market share continuing to grow (despite headlines claiming otherwise). This means that shoppers from all walks of life and a diversity of viewpoints are increasingly interested in EVs.

Future EV Acceptors Show Less Political Differentiation than Current Owners

New to AutoPacific’s survey this year, respondents were asked to identify the political party with which they most align. Findings reveal that 54% of current EV owners and 60% of current PHEV owners identify themselves as Democrat compared to 30% of EV owners and 26% of PHEV owners identifying as Republican. Our analyses of EV owners over the years have clearly shown a correlation between more left-leaning political views and EV early adopters, but as EVs continue to expand across brands, vehicle types and price ranges, that association is showing signs of fading.

Looking at future EV Acceptors, those who say they either intend to acquire or will consider acquiring an EV in the near future, AutoPacific’s study reveals a smaller gap between Democrats and Republicans, as less than half (46%) of respondents who intend to purchase an EV or will consider purchasing one in the future identify as Democrat, 28% are Republican and 24% are Independent or third party.

Politics Are Not to Blame for EV Rejection

Further investigation reveals that EV Rejectors are becoming less concerned about associating their own political beliefs with owning an EV. In another study finding, just 8% of respondents who will not consider acquiring an EV in the future say it’s because “EVs are not aligned with my political beliefs,” compared to 10% of EV Rejectors in last year’s study. Of those 8%, 62% are Republican and 13% are Democrat. When it comes to EV rejection, politics do play a small role, albeit a declining one, but rejection of EVs is much more likely to be due to charging and cost concerns. EV rejection has been a focus of AutoPacific’s research in recent years as automakers evaluate their powertrain offerings, deciding between hybrid, PHEV, EV and hydrogen.

However, going into the 2024 presidential election, general consumer acceptance and understanding of EVs will almost certainly continue to shift. This could be especially true amongst vehicle shoppers, including EV Rejectors and EV Acceptors, who lean right, as Tesla CEO Elon Musk continues to pitch public support for the GOP’s nominee.

New Data Shows Tire Shoppers Do Their Research and Know What Brand They Want Before Going to the Retailer

by Deborah Grieb, Director of Marketing and Consumer Insights

More than half of replacement tire buyers know what brand they plan to purchase before they go to the tire retailer, according to AutoPacific’s recently completed U.S. Replacement Tire Buyer Study. Up 9%pts from 47% in 2019 to 56% in 2024, the study also reveals an increase in time from the start of shopping to actual purchase, indicating consumers are doing more research prior to taking that final step. The study was conducted in July 2024 and consists of nearly 7,000 vehicle owners who reside in the U.S. and replaced one or more tires within the previous 12 months from one of 25 surveyed brands. Tire manufacturers and retailers need to know who their consumers are, how they’re making their replacement tire purchase decision, and what they’re looking for in a tire, among other things. The 2024 U.S. Replacement Tire Buyer Study is the 10th installation of our study, designed to provide tire companies with actionable insight into brand awareness, shopping behavior, tire attribute importance and satisfaction, buyer psychographics, demographics and more.

Consumers are Doing Their Research About Price, Promotions and Ratings

Consumers have a wealth of information available at their fingertips and not surprisingly, the top activity done by replacement tire buyers during the shopping process is checking pricing and promotions, followed by checking tire ratings and reading tire reviews. When asked specifically about research done online, a simple Google search topped the list as tire shoppers were most likely to do a Google search for tires for their vehicle (49%) or about a particular tire brand (47%), followed by visits to a tire retailer website such as Discount Tire or Sam’s Club Tire Center (41%). While researching tires on social media is at the bottom of the list of online research activities for the total sample of replacement tire buyers, it is age dependent with buyers under age 40 more likely to get information about tires via social media than those 40 and older. 

How Important are Advertising and Sponsorships?

Only 12% of replacement tire buyers say they noticed or watched a tire brand ad during their shopping process but 75% of those people say it had an influence on their purchase decision. Additionally, 41% of tire shoppers say if a tire brand sponsors a race team, sporting event or sporting team they are more likely to consider it. Advertisements and sponsorships definitely have their role but it’s more about brand awareness and image – about getting in the heads of consumers before they’re in the shopping process so you’re top of mind. Replacement tire buyers who watch various sports, motorsports, read automotive periodicals, watch YouTube videos and subscribe to streaming services have a greater familiarity with all surveyed brands and in turn those brands have higher future brand consideration. For sports in particular, those who watch sports such as the NFL, NBA and world soccer regularly when they’re in season are 14-22%pts more likely to be familiar with a brand, with the greatest impact on Toyo and GT Radial. Viewership of motorsports such as NASCAR and Formula1 has an even greater impact than regular sports, ranging from an increase of 14-29%pts in brand familiarity compared to those who don’t watch motorsports.