Demand for green vehicles and mobility alternatives increases: Study
By siliconindia   |   Wednesday, 27 October 2010, 09:10 IST
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Bangalore: Although the percentage of consumers expressing satisfaction with the vehicle buying process is slightly increasing (70 percent in 2010 in comparison with 69 percent in 2009), there is evidence of a shift in consumer expectations, which will have important implications for vehicle manufacturers and dealers in mature and developing markets, reveals Capgemini's 12th annual global automotive study, Cars Online 10/11. Capgemini, a global provider of consulting, technology and outsourcing services, surveyed over 8,000 consumers in Brazil, China, France, Germany, India, Russia, the UK and U.S. in 2010 to provide a detailed analysis of consumer vehicle buying behavior around the world including shopping patterns, social media usage, online buying, green vehicles, customer interaction and aftersales and servicing. Demand for green vehicles continues to grow steadily with 43 percent of respondents owning a fuel-efficient or alternative fuel vehicle. Nearly 73 percent expect full electric vehicles to become a viable option within the next five years. Over 40 percent of consumers would like the ability to purchase vehicles online. There is an increase in the number of consumers looking to social media for information and opinions from other consumers and want to find both qualitative and quantitative information from a single online location. The vehicle buying cycle continues to shrink, with more than half of consumers starting their research within just two months of purchase. Alternative buying options such as mobility packages, vehicle-sharing programs and ride-share services are growing in popularity. The study finds that consumers in developing markets are much more demanding. They also consider a wider range of factors when making their vehicle choices and are more demanding about the response time they expect from dealers and manufacturers. Ownership of fuel-efficient and alternative-fuel vehicles is also higher in developing markets, compared with mature markets, heavily influenced by Brazil which boasts the highest levels of green vehicle ownership at 72 percent of respondents. Electric vehicles, particularly hybrid gas/electric cars, are the most commercially mature and viable. They have demonstrated the potential to reduce fuel consumption and exhaust emissions. Gas/electric hybrids are the primary type of alternative-fuel vehicle that consumers currently own or plan to buy, cited by 34 percent of respondents. The primary reason to own a green vehicle continues to be fuel economy, followed by impact on the environment and as this becomes an increasing focus for consumers, new mobility options are also generating significant interest. Mobility packages represent a significant shift in buying behavior and center around buying services on a regular basis rather than a single product every few years. "In 2009, the automotive industry was characterized by significant volatility but in contrast, this year has seen movement towards stability and even growth in mature markets as vehicle sales gradually improve, together with strong expansion in developing markets," said Nick Gill, Capgemini Global Automotive Sector Leader.

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