The global electric vehicle markets are witnessing a changing trend where more customers are considering the acquisition of such a vehicle with a four percentage point decline in skepticism between 2021 and 2022, a mobility consumer pulse survey conducted by McKinsey says. However, aspirants have higher expectations from the EVs with regard to reliability and predictability as well as a more seamless and personalized experience.
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According to the Survey, the proportion of consumers considering battery-electric vehicles (BEVs) rose by five percentage points to 20 percent between December 2021 and December 2022, while the proportion considering a plug-in hybrid (PHEV) rose by four percentage points to 22 percent.
The survey polled more than 4,000 respondents globally, focusing on consumer sentiment around electrification, the car-purchasing experience, and innovations in automotive retail. The findings show that consumers expect an excellent experience but are not always sure that the industry is ready to meet their needs.
The survey also showed that while consumers enjoy digital interactions, they are concerned about factors including opaque pricing, complexity in the configuration process, and variability between dealer offerings. When it comes to test drives, consumers are increasingly interested in new formats, including testing virtually or at home.
Based on the survey, McKinsey says companies now need to embrace bold decisions and innovation to meet the needs of digital consumers. Given the fast pace of digital domination, the first instinct of a consumer is to go online. A third of the respondents said they not only research but also purchase their next vehicle digitally, citing simplicity and speed as the key drivers for doing so.
The survey also noted down some of the more acute pain points in the EV space. While 33 percent of consumers say they regret a lack of options for personalized configurations as against just 25 percent in the case of traditional car buyers. Meanwhile, 33 percent demand a smaller set of preconfigured options, and 28 percent want the opportunity to change configuration post purchase and pre delivery.
On the question of potential adaptations and innovations in the purchasing process, respondents’ top preferences include simplicity, convenience, higher levels of personalization, and greater price transparency—all core features of the digital experience. Future EV buyers place more emphasis than traditional buyers on simplicity and personalization in the vehicle-selection process.
The trends shaping the automotive retail landscape are powerful and impact almost every aspect of the customer journey. In addition, the evolving landscape brings complexity, with consumers demanding more innovation and convenience but also remaining attached to aspects of the traditional experience, notes the Mckinsey report.
There is a sense of fluidity in attitudes that opens the market to increased competition. As demand for EVs continues to rise, we expect these trends to deepen and accelerate. To optimize their performance, both incumbents and new entrants need to think carefully, seek out pockets of value, and be flexible in meeting changing consumer needs, the report says.
