US Perceptions of Car Types Consumer Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context
• COVID-19: US context
• Economic and other assumptions

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: Total US unit sales of new vehicles, by type, 2016-21
  • Figure 2: Automotive industry outlook, 2022-27
• Opportunities and challenges
• Educate consumers on lifetime ownership on electric vehicles
• Promote safety for all; improve vehicle crash testing for men and women
• Chip shortage disrupts inventories and availability; drives consumers to keep vehicles longer
• Price of car types creates potential barriers for consumers
• Key consumer insights
• Price is most important to consumers when choosing a car type; physical attributes also take priority
• Consumers indicate a need for further education
• Majority of consumers consider SUVs, but there is still interest in variety
• Consumers are interested in the rise of electric vehicles
• There’s room to grow interest in autonomous vehicles

Market Size

• Inventory, supply issues and economic influences led to depressed sales
  • Figure 3: Total US unit sales of new vehicles, by type, 2016-21
• Hybrids and electric vehicles witness increasing adoption
  • Figure 4: Total US unit sales of hybrid /electric vehicles, by type, 2016-21

Market Factors

• Consumer confidence and unemployment drive consumers to be more critical of their spending
  • Figure 5: Consumer Sentiment Index and Unemployment, 2000-21
• New and used vehicle prices present a barrier for consumers
  • Figure 6: Consumer Price Index, new vehicles and used vehicles, 2018-21
• Gas prices influence consumers’ car type decisions
  • Figure 7: US gasoline and diesel retail prices, 2010-21
• Build Back Better Act; Biden introduces tax credit for electric vehicles

Competitive Strategies and Market Opportunities

• Automakers build on existing models; drive interest of “non-traditional” electric vehicles
  • Figure 8: Ford highlights the capabilities of all-electric pickup
• Tesla leverages partnerships to extend reach
  • Figure 9: Tesla partners with Radio Flyer to create Cyberquad for kids
• Sony looks to enter the automotive space
  • Figure 10: Sony CES 2022 vehicle unveiling post
• Toyota commits to new car types
• Automakers reduce sedan offerings, crowd crossover market

The Car Consumer – Fast Facts

Decision Makers and Purchase Intent

• Consumers’ approach to car buying varies
  • Figure 11: Decision makers, 2021
• • Figure 12: Decision makers, by gender and generation, 2021
• Most consumers intend on purchasing a vehicle within the next three years
  • Figure 13: Purchase intent, by generation, 2021

Factors in Choosing Car Types

• Consumers take into account multiple factors when evaluating car types
  • Figure 14: Volvo reaches consumers through Fotografiska museum exhibit
  • Figure 15: Purchasing factors, 2021
• Older generations consider more factors
• • Figure 16: Purchasing factors, by generation, 2021
• Factors and experience draw differences amongst races
  • Figure 17: Nissan celebrates Black History Month
  • Figure 18: Purchasing factors, by race and Hispanic origin, 2021
• More money, more factors
  • Figure 19: Purchasing factors, by household income, 2021
• Consumers’ work lifestyles drive different considerations
  • Figure 20: Purchasing factors, by employment and work from home status, 2021

Understanding Car Type Perceptions

• Perceptions of car types vary; SUVs and sedans viewed most positively
• • Figure 21: Car type perceptions, 2021
  • Figure 22: Correspondence Analysis – Symmetrical map – Car type perceptions, 2021
• Gen Z consumers indicate their inexperience
  • Figure 23: Perceptions of car types – high quality, by generation, 2021
• • Figure 24: Perceptions of car types – affordable, by generation, 2021
• Safety and maintenance represent an opportunity to attract women
  • Figure 25: Perceptions of car types – safe, by gender, 2021
• • Figure 26: Perceptions of car types – low maintenance, by gender, 2021
• Environmental friendliness could be a differentiator for parents looking for vehicles that fit their lifestyle
  • Figure 27: Perceptions of car types – environmentally friendly, by parental status, 2021
• When it comes to lifestyle, Black and Hispanic consumers are more likely to choose expensive car types
  • Figure 28: Perceptions of car types – fits my lifestyle, race and Hispanic origin, 2021

Consideration of Car Types

• SUVs and sedans are the most popular amongst consumers planning to buy a vehicle
  • Figure 29: Consideration of car types, 2021
• Women demonstrate interest in SUVs, sedans, and crossovers
  • Figure 30: Consideration of car types, by gender, 2021
• Younger consumers show interest in hybrids/electric vehicles, sports cars, coupes and convertibles
  • Figure 31: Kia highlights the feeling of driving its vehicles
  • Figure 32: Consideration of car types, by generation, 2021
• Aspirational desires drive car type consideration
  • Figure 33: Consideration of car types, by household income, 2021

Attitudes toward Electric Vehicles

• Consumers look forward to the rise of electric vehicles
  • Figure 34: Attitudes toward electric vehicles, 2021
• Millennials lead the charge when it comes to electric vehicles, followed by Gen Z
  • Figure 35: Attitudes toward electric vehicles, by generation, 2021
• Parents are prime targets for electric vehicles
  • Figure 36: Tesla and Radio Flyer collaborate to reach kids
• • Figure 37: SEA Electric converts school buses to 100% electric
  • Figure 38: Attitudes toward electric vehicles, by parental status, 2021

Attitudes toward Autonomous Vehicles

• Millennial consumers are quick to trust autonomous vehicles
  • Figure 39: Attitudes toward autonomy, by generation, 2021
• Opportunity to drive autonomy appeals across living areas
  • Figure 40: Attitudes toward autonomy, by area, 2021

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Consumer survey data
• Consumer qualitative research
• Abbreviations and terms
• Abbreviations