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New Capgemini study reveals the disruptive impact of car-hailing and ride-sharing services on car purchasing and ownership models

34 percent of consumers see mobility services as an alternative while 56 percent consider it complementary to buying a car

Capgemini Logo (PRNewsFoto/Capgemini)

News provided by

Capgemini

May 16, 2017, 03:30 ET

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PARIS, May 16, 2017 /PRNewswire/-- According to a new study of more than 8,000 consumers across eight key markets1 by Capgemini, a global leader in consulting, technology and outsourcing services, more than a third of car buyers (34 percent) now see ride sharing and tap-and-ride services as a genuine alternative to car ownership. While sales of new cars are continuing to grow significantly2, the new data from Capgemini echoes a shift in the strategy of leading manufacturers who are already investing in car-sharing services through launches, acquisitions or partnerships, to adjust to the shifting attitudes of consumers. The 17th Cars Online report from Capgemini, "Beyond the car," also contains good news for the traditional automotive sales model in the face of explosive growth in car sharing and tap-and-ride services. More than half of respondents see car-hailing and ride-sharing services such as Uber, Didi and BlaBlaCar as complementary to buying a new car (56 percent).

Furthermore, the percentage of those who see mobility services as complementary to buying a car increases when looking at younger car buyers aged 18-34 (64 percent) and those based in emerging markets China (77 percent) and India (63 percent). The significance of the investments by major manufacturers in car-sharing schemes is confirmed by the fact that two-thirds of consumers (66 percent) state that car brands are an important factor in their choice of car-sharing programs, indicating that these schemes could become an important part of the new car-sales cycle.  

Kai Grambow, Global Head of Automotive at Capgemini, said: "We are currently experiencing a golden age of car sales, however it's clear that this won't last forever in its current form. Car brands are realizing they need to react to changing consumer habits to sustain growth. Becoming leaders in car sharing and the broader mobility space will not just create new revenue streams for car manufacturers, but will also allow brands to raise awareness and establish a new kind of relationship with consumers as they decide on their next model to purchase."

Other key report findings show the broader impact of a rapid rise in technological capabilities and awareness among consumers on purchasing habits:

  • Autonomous-driving features remain a significant selling point for consumers. With assisted-driving functionality becoming standard on mainstream car models and regular reports of new autonomous-vehicle tests, 81 percent of respondents are willing to pay additional costs for autonomous-driving features.
  • Cybersecurity has now emerged as a key factor in car purchasing. In 2015, a third of respondents were concerned about cyber security. After further high-profile hacks of automotive platforms, consumers want re-assurance from manufacturers that cars are secure, with over two-thirds of car buyers (68 percent) stating that the "cyber resilience" of a car would influence whether they bought it or not.
  • Consumer interest in buying cars from tech brands is increasing despite lack of substance. A further 18 months of rumors that Google or Apple will launch cars has seen consumer interest increase from the 2015 study (49 percent), to well over half of consumers (57 percent) who are now open to buying a vehicle from a technology company such as Apple or Google.
  • Consumer trust of autonomous vehicles is split between established and new players. Given that the tech companies have led many of the public-testing exercises for autonomous vehicles, it's significant that half of consumers (51 percent) would have more trust in car manufacturers producing a car with autonomous capabilities over a technology-firm produced car.
  • Data privacy concerns are reducing as consumers embrace the connected-device model. Familiarity with other connected devices and the tradeoff between data sharing and greater personalization and better services is changing consumer attitudes to connected cars. The majority of consumers would be willing to share their vehicle data (89 percent) and driver data (76 percent) while the car is connected. For comparison, in the 2015 study, 80 percent of respondents said they would share data freely or with certain restrictions, emphasizing the continuing willingness of consumers to share data.
  • Demand for digital showrooms is challenging the traditional sales model. No doubt influenced by the continued consumer interest in disruptive technologies and virtual showroom launches from a number of major manufacturers, consumers are demanding alternative methods of finding information through OEMs and dealers, such as virtual reality vehicle presentations (62 percent), live chats (43 percent) and video blogs from customers (36 percent).

A copy of the report can be downloaded here.

Capgemini's Cars Online Research Methodology
Cars Online 2017 is Capgemini's annual research into consumer behavior and expectations across the entire car purchase lifecycle (including interest and purchase through to ownership and re-purchase). It also covers consumer views on the innovation areas of "connected vehicles," "autonomous driving" and alternative "mobility services." This year's 17th edition of the report had more than 8,000 consumers participate in the survey. All respondents were actively considering a car purchase or lease within the year. Countries represented were Brazil, China, France, Germany, Italy, India, the United Kingdom (UK), and the United States (U.S.). The research was conducted in January 2017.

About Capgemini
With more than 190,000 people, Capgemini is present in over 40 countries and celebrates its 50th Anniversary year in 2017. A global leader in consulting, technology and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion (about $13.8 billion USD at 2016 average rate). Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at www.capgemini.com.

Rightshore® is a trademark belonging to Capgemini

1 Brazil, China, France, Germany, India, Italy, UK, USA
2 Car sales were up 4.8 percent from 2015 to 88.1 million cars globally in 2016 - https://www.macquarieresearch.com/ideas/api/static/file/publications/7311246/CommoditiesComment160117xe263029.pdf

SOURCE Capgemini

Related Links

http://www.capgemini.com

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