94% of Chinese consumers consider buying an electric vehicle at their at their next purchase
2019年12月6日 | 新闻稿- As we move closer to an environmental crisis point, our new research reveals a dramatic shift in consumer attitude towards more eco-friendly vehicles across major markets
- China is heading in the right direction with 94% of Chinese consumers considering an electric or hybrid vehicle at their next purchase
- Chinese drivers are also looking to the future: 66% of Chinese consumers will consider mobility options instead of vehicle ownership at the next replacement
However, following cuts in subsidies for New Energy Vehicles (NEV) in 2019, their volumes decreased 34% in September, underlining the importance of government support in converting consumer appetite into reality
China is leapfrogging towards innovative vehicle concepts across the board, with 94% of Chinese consumers considering an electric or hybrid vehicle at their next purchase, and 66% considering a mobility alternative instead of their own car at next replacement, according to the Global Automotive Disruption Speedometer report released today.
Without historical attachment to ownership and under constraint of high costs on urban vehicles, our research found a significant openness to flexible solutions in China. This has driven 145% growth in car sharing platforms and P2P apps in recent years. Air pollution and traffic congestion problems have led to the introduction of limits to the number of cars on the streets. These issues, together with increasing support from authorities in the form of subsidies for operations, are creating a favourable environment for car-sharing platforms in China.
Pascal Martin, Partner, said: “Although car ownership has been growing in China in recent years, we’re seeing the increasing desire for and openness to alternative ways to own and fund a private vehicle, with a focus on simple subscription-style bundles. Chinese consumers no longer want to manage the financial risks and operational hassles of their vehicle, and there is appetite for full subscription bundles with all-inclusive costs that offer the ability to swap cars when needed.
“These trends will undoubtedly open up new risks and opportunities for different players in the automotive value chain. Crafting and selling new driving “bundles” will be the future, with the service components and extras as important as the vehicle itself. To deliver an integrated customer proposition, the automotive marketplace will see more partnerships, and connectivity and data will be critical to linking up different services and payments in an effective way.”
The report also identified a gathering momentum behind electric and hybrid vehicle appetite (EVs), with more than 50% of global consumers now willing to consider electric/hybrid vehicles at their next purchase. China is leading the way in consumer appetite in EVs across the five markets that the report covers, with 94% of Chinese consumers indicating that they will consider buying an EV when they next replace their vehicle.
However, it will take time for these good intentions to translate into adoption, with electric vehicle only accounting for 7% of new cars sold in China between 2017 – 2018. Although Chinese consumers show willingness to adopt EVs, subsidies for New Energy Vehicles were cut significantly in 2019 and their volumes actually decreased 34% in September, underlining the importance of government support in converting consumer appetite into reality. Evidence in Norway shows that sustained government focus and generous incentives can drive significant adoption where 39% of new cars are electrified, supported by incentives at point of purchase but also ongoing perks of free parking, toll waivers and charge point networks. If China is to convert consumer good intentions into action, the government and the industry need to work together to continue to take further decisive action and address consumer concerns.
Our research revealed that over two-thirds (69%) of Chinese consumers said the range of an electric vehicle was the biggest barrier to buying an electric or hybrid car, followed by access to vehicle charging points when away from home (55%).
These trends and initiatives are encouraging for the sector and a sign that consumers and governments are taking responsibility for their environmental impact more seriously than ever and putting plans into action.