Global leading consulting, technology and outsourcing services company, Capgemini has published ‘Cars Online 08/09’, an in-depth study into the global automotive business with particular focus on the contribution the internet has in shaping car buying trends.
The report highlights the rising trend for greener vehicles while identifying the difference in car buying behaviour of consumers within mature and emerging markets.
Involving over 3,000 consumers in eight countries (Brazil, China, France, Germany, India, Russia, UK and US), the study identifies a number of key findings:
• For the first time in the report’s ten year history, a vehicle’s fuel economy has been found to be as important to consumers as safety and reliability, a result of rising fuel prices and increased concern about the environment.
• There are significant differences between the mature and developing markets, and also within the emerging markets of Brazil, Russia, India and China (the BRIC nations).
• People are also increasingly relying on the web for presales information, and are looking more and more to complete their purchases online.
“Our Cars Online research over the last ten years makes it clear just how much the automotive industry has changed in the last decade,” said Capgemini Automotive Leader, Nick Gill.
“We can expect equally significant changes to the industry in the next few years as consumer adoption of technology continues to rise rapidly. Manufacturers and dealers cannot afford to ignore the opportunities for growth presented by the internet as a direct sales channel which can inform customers on which vehicles meet their needs, such as greener vehicles.”
Rising fuel prices are having a significant effect on consumers’ vehicle purchasing decisions the study found, with 90 per cent of those surveyed citing fuel economy as an important consideration in their vehicle choice, particularly in the developing markets. The survey also found a rise in green vehicle ownership: 36 per cent of respondents say they own a fuel efficient or alternative fuel vehicle (up from 28 per cent last year) and half say they plan to buy such a vehicle. Despite this, sadly for the vehicle manufacturers, consumers surveyed are not prepared to pay a premium to go green, and the majority of respondents expect to pay no more than 10 per cent extra for fuel efficiency in a vehicle.
The repost also found an increased use of the internet as a research tool during the vehicle buying process, with 88 per cent of respondents indicating they use it as the primary source of information during the purchasing process, up from 11 per cent ten years ago.
Until fairly recently, the internet has been seen primarily an information source for purchasers but there is growing interest in buying vehicles online. Frustration with dealer negotiations and consumers’ increased web sophistication are driving this interest. In 2007, 20 per cent of consumers were looking to the internet as a sales channel and this year, the number has jumped to 44 per cent. Popular websites such as SaveMoneyOnCars.co.uk can confirm this trend following another successful year, while ContractHireAndLeasing.com continues to experience growing interest in the car leasing sector.