1、uncommon senseTMHitting the brakes Global Automotive Disruption Speedometer 2022In 2022,the automotive sector continued to face disruption from electric vehicles(EVs),online adoption,and new finance models,while dealing with the aftermath of a global pandemic.Then,along came a cost of living crisisT

2、his added further complexity,with concerns about fuel,economic stability,and inflation impacting consumer appetite for spending.At the same time,the industry continues to grapple with the rise of electric vehicles(EVs)and disruptive new finance models.These forces have resulted in an increasingly di

3、verse range of customer attitudes,all of which will impact how(and which)industry players can own the customer relationship,build winning business models that gain market share and,ultimately,increase profits.In this report(based on research with over 9000 consumers in eight countries)we dive deep i

4、nto the big trends and every stage of 2022s car buying journey.We reveal how to target EV enthusiasts and introduce you to two small yet influential consumer groups:carservatives who are resistant to all trends and early adopters who are keen to explore all the new trends on offer(EV,online purchasi

5、ng,subscriptions).We also detail how buying habits and attitudes have evolved over the last few years,from the rise of bricks and clicks to increasing demand for all-inclusive subscriptions.Is your seatbelt fastened?Lets go.02|OC&C Hitting the brakesOC&C Hitting the brakes|03Stretched finances mean

6、consumers are delaying new car purchases and putting the monthly cost of motoring first when it comes to decisions about their car.How can the automotive industry step in and help while still protecting or even growing revenues?Weve come a long way since lockdown.How has that acted as a catalyst to

7、consumer behavior and what does the car buying journey look like in 2022s new normal?Do drivers still want their own car?Has interest in electric vehicles run out of charge?How do drivers want to pay for their car?How do they want to find and purchase a car?Will they buy online“sight unseen”?How do

8、drivers want service and support?Attitudes are polarising when it comes to the industrys three biggest disruptors:online purchasing,electric vehicles and subscriptions.Whats the best way to target customers with increasingly diverse needs?As the sector continues to evolve,it must take steps to adapt

9、.What are the key lessons from this years Speedometer and who is set to gain?In this report1.Riding the cost of living crisis3.The evolving customer journey2.Meet the two extremes of car buyers4.Winning strategies for 202304|OC&C Hitting the brakesRiding the cost of living crisisJust as the automoti

10、ve industry emerged from the pandemic and had adjusted to deal with an(albeit margin-boosting)shortage of new vehicles,along came a global cost of living crisis.As a result,half of drivers said they are considering delaying their next vehicle purchase.OC&C Hitting the brakes|05The good news car is s

11、till king!The good news is that exclusive access to a car is as important to consumers as ever,and demand is likely to return as soon as the economic situation improves.Exclusive use of the car is still seen as highly essential,with only 2-7%of drivers not considering it so across the countries we s

12、urveyed.The US,where 88%see it as essential,and Australia(89%)revealed themselves as the most car dependent nations,with the Netherlands(73%)and Germany(77%)the least bothered about having their own car.This strength of feeling is,unsurprisingly,not quite as high as in 2020 a pre-vaccine time of unc

13、ertainty and on/off lockdowns.However,Covid-related concerns,such as lockdowns and contagion,remain a compelling argument for having access to your own private vehicle.37%of drivers said that these worries made them see a car as more essential than previously.The highest percentage was in China(62%)

14、,with over 40%in the UK,the US and Australia agreeing.These consumers are back doing as many miles as before and expected to return to slow increases in mileage over time.These consumers are back doing as many miles as before and expected to return to of slow increases in mileage over timeOld habits

15、 die hard and consumers are set to put in more mileage than before the pandemicMILES DRIVEN BY COUNTRY 2016-2027 Forecast(bn miles)20162017COVID impactCOVID Recovery/Supply storageCOVID Recovery/Supply storage200212022F2023F2024F2025F2026F2027F3,4003,050Miles driven(bn)3,0004503,3504003,3

16、003503,2503003,2002503,1502003,0+2%+1%-7%+0-1%+4%-21%+3-5%+1-2%+12%06|OC&C Hitting the brakesFinancially worried consumers will delay new and used-car purchasesWith some countries experiencing record inflation and the IMF predicting a global recession,consumers are guarding their finances

17、.Globally,over a third of drivers are set to delay their next car purchase.This rises to c.60%in France,and 50%in Australia,Germany,the UK and the US.This is likely to ease pressure on the price of second-hand cars which have been at a red-hot peak due to the under supply of new vehicles.This will c

18、ause problems for dealers,leasing companies and others who have benefited from the supply squeeze in the last two years.Reactions from different consumer groupsDrivers are responding differently to the cost of living crisis.New-car buyers will not just delay,they will also trade down to used vehicle

19、s(27%of recent new car buyers expect to buy used next time).However the new-vehicle sales market has some protection from further contractions,as it is already at structural lows driven by the chip shortage and constrained vehicle supply.As the chip shortage eases over the next 12-18 months and fact

20、ories get back up to speed,volumes should be supported by latent demand/backlogs from fleet customers.Some 55%of used-car buyers are more likely to delay their next purchase vs 48%of new-car buyers.Even with trade-down from new-car buyers moving to used,the overheated used-car market is likely to co

21、ol substantially.Poorer and younger owners are more likely to delay buying a car,with 57%of 1824 year olds likely to delay vs 48%of those over 45.Further extremes can be seen in some countries like the UK where the likelihood of delay is 83%among 1824 year olds vs 48%among those over 45.The challeng

22、e 06|OC&C Hitting the brakesOC&C Hitting the brakes|07IMPACT OF COST OF LIVING ON EXPECTED TIMING OF NEXT CAR(%respondents)3%29%7%34%59%53%44%52%4%50%40%50%36%48%59%2%5%46%53%4%7%40%7%68%Q:Do you expect the following recent market changes to impact your decision on when to get your next car?N=6,483S

23、ource:Speedometer 2022,OC&C analysis.Move now!Sector opportunitiesThe automotive sector must be agile in its response to this short-term threat.Make financing easy(and cheaper per month where possible)more consumers will want to finance their car,and particularly to access contract hire lease/person

24、al contract plans(PCPs)which will enable lower monthly payments on their vehicle than personal unsecured loans or hire purchase(as only the depreciation is paid).Drive new financing options target less resilient groups with new solutions such as used-car contract hire leases or salary sacrifice via

25、employers particularly on Electric Vehicles where government/tax incentives make costs highly appealing Octopus EV in the UK has been growing with this model.Focus sales(and discounts)the crisis will not affect everyone equally,there will still be affluent buyers and blunt tactics like blanket disco

26、unts will give away value unnecessarily.Cost of living is expected to delay when they get a new carCost of living is expected to have no impact on when they get their next carCost of living is expected to speed up when they get their next car08|OC&C Hitting the brakesIf you believe the hype,it would

27、 seem there are three innovations set to sweep car buyers off their feet:online purchasing,electric vehicles,and subscription services(other trends such as autonomous vehicles and sharing are either further off or only affecting a niche).The reality is more nuanced:there is support for these three t

28、rends,but what weve seen is a divergence of consumer attitudes.In one corner,we have early adopters,a small group that embraces all three areas of innovation.In the other stand the carservatives who want to buy their car in person,ideally paying for it from savings and part exchange oh,and it must b

29、e petrol or diesel.Some 57%of this group are over 55 years old,but they are joined by some youngsters (12%are under 35-years-old).Early adopters have a striking open-mindedness about their car.They are more likely to see it as a status symbol,are far happier to lease than own,and are much more likel

30、y to start with a budget rather than a specific car in mind.They are also more likely to be younger 39%of early adopters are under 35 years old vs 14%who are over 55.Unsurprisingly,early adopters are the only group interested in car sharing,with 70%willing to consider it.In the middle are a group wi

31、th mixed levels of enthusiasm for different trends.There are EV enthusiasts who wouldnt touch subscriptions,and petrol fans who would happily buy a car online.Carservatives vs early adopters meet two extremes of car buyersOC&C Hitting the brakes|09Early adopters have a striking open-mindedness about

32、 their car.They are more likely to see it as a status symbol,are far happier to lease than own,and are much more likely to start with a budget rather than a specific car in mind The take home?The car is a deeply personal space and peoples feelings about it matter as much as their circumstances in de

33、ciding whether to adopt new trends.Move now!Sector opportunitiesPersonalise product and messaging-One size doesnt fit all and it will take skill for the sector to keep on top of evolving user preferences.There are opportunities for those that can accurately target preferences and deliver products an

34、d offers which cut through consumer concerns.Dont make assumptions when marketing new products and services,dont make generalisations based wholly on age or affluence there are forward thinkers across the spectrum.Keep it simple products and services that move on multiple dimensions,for example EVs

35、that are sold online and on subscription,will be hard for the majority to swallow land innovation one step at a time.CUSTOMER SEGMENTATION BY ATTITUDE TO KEY NEW INNOVATIONS Share of respondents by interest in auto trends(N=6,483,%respondents)More than 3/4 of consumers express interest in at least o

36、ne of the auto innovations (EV,subscription and online purchase)23%33%27%17%1.EV Enthusiast defined as anyone who claims to be considering,likely to or will buy a fully electric vehicle the next time they purchase a vehicle.2.Online adopters defined as anyone who bought their last car online,or is c

37、onsidering using online to purchase their next vehicle.3.Subscription considerers are those who are likely or very likely to consider a car subscription service.Source:Speedometer 2022,OC&C analysis.“Carservatives”,with limited interest in any of the three auto trends EVs,online purchasing and subsc

38、riptionsConsumers with interest in only one of the trends 49%of these are only interested in EVsConsumers with interest in only two of the trends 61%of these are EV enthusiast1 and online adopters2“Early adopters”,with interest in EVs,online purchasing and subscriptionsDrivers only10|OC&C Hitting th

39、e brakesThe evolving customer journeyThe customer journey continues to evolve,with every stage impacted by changing consumer preferences as well as supply side innovation.Would drivers consider an alternative to exclusive car ownership?Exclusive car ownership remains a priority in all marketsKey cha

40、ngesImplicationsCar sharing alternatives could be considered as a complementary offerWhat do drivers want to buy?EV or traditional?Attitudes to EVs are plateauing and becoming more polarisedThe industry must convert EV sceptics,while addressing the needs of enthusiastsWhere do consumers want to find

41、 and buy a car?Online-only purchasing has cooled,but consumers want the choice to interact digitally for parts of the journey Dealerships must re-shape to serve the clicks and bricks journeyHow do they want to pay?Fewer drivers are paying from savings alone,and they dont care if they own,have the op

42、tion to own or lease/rentOpportunities for leasing and subscription providers to take market shareHow do drivers want to maintain and repair their vehicle?More drivers are looking for digital convenience and simple products to spread/de-risk the cost of motoringDealers must make SMR as hassle-free a

43、s possible with online booking and on-drive repairs OC&C Hitting the brakes|11Would drivers consider an alternative to exclusive car ownership?12|OC&C Hitting the brakesTotal Move now!Sector opportunitiesBe realistic car sharing will not be industry-changing in the near term;it is an opportunity for

44、 niche players or as an add-on.Focus on the complementary car sharing,taxis and short-term hire are all popular,but for the vast majority dont appeal as an alternative to owning a car.This is not to say they cant be part of a valuable mobility proposition,particularly for those servicing business/fl

45、eet customers.I WANT EXCLUSIVE USE OF MY OWN CAR THE MAJORITY OF DRIVERS REJECT ALTERNATIVES Share of drivers who would not or dont know whether they would consider as an alternative to own a car(%)83%79%85%79%80%80%76%83%81%76%76%80%68%77%73%69%70%73%37%32%34%70%72%73%86%87%85%1.Q:Next time you swa

46、p your vehicle,would you consider any of the following alternatives to having your own vehicle?N=6,483.2.Italian data reweighted to adjust for sample biasSource:Speedometer,OC&C analysis.78%78%75%TaxisShort-term rentingCar-sharing clubs72%69%73%68%69%69%61%69%65%68%67%71%60%61%62%53%64%61%28%24%25%6

47、1%62%62%8%9%10%11%10%12%11%11%11%15%14%16%8%9%9%9%9%11%15%13%12%9%8%9%9%10%11%Drivers are clinging firmly to their car keys,with a clear majority in all countries(apart from China)rejecting mobility alternatives,such as taxis,short-term rental or car-sharing clubs.This is no great change from previo

48、us years,though some countries such as the UK,Italy and the US are gently warming to the idea.Resistance continues to stem from concern about day-to-day vehicle availability where and when the consumer needs it,which explains why the sharing proposition remains attractive to a niche minority of urba

49、n drivers.(Drivers only)Would not considerDont knowOC&C Hitting the brakes|13What do drivers want to buy EV or traditional cars?Innovation rarely follows a steady adoption curve:the path from novelty to normality is far from straightforward.EVs are no exception.Consumer enthusiasm remains significan

50、t but has hit a plateau and providers and governments are yet to address major barriers to adoption.While over 40%of drivers across all countries accept that they will eventually own an electric vehicle,this figure is growing at a slower rate than in previous years.Growth in consideration of a BEV(B

51、attery Electric Vehicle)for the drivers next car has also slowed or stopped in all countries surveyed,having reached c.50%in all western countries(though nearly 90%in China).This slowdown is despite 44%of consumers citing concerns about current petrol and diesel prices as a reason to buy an EV.14|OC

52、&C Hitting the brakesThe dampened enthusiasm for EVs is due to cost of living pressures and a growing understanding of the limitations of this relatively new vehicle category.For a growing group of sceptics,the dream of silent cars gliding along emission-free motorways has been clouded by concerns o

53、ver range anxiety and costs.Core concerns EV sceptics vs enthusiastsEV enthusiasts and sceptics are united in their rising concern about charging costs.Compared to 2021,concern from sceptics has increased by 7ppt,and concern from enthusiasts 6ppt.Perhaps reflecting the cost of living crisis,the numb

54、er of enthusiasts worried about the higher purchase price of EVs grew by 8ppt over the year,however they became less concerned about range,access to charge and reliability,showing the industry has done well at addressing these concerns.Sceptics,on the other hand,stuck to their previous convictions w

55、ith worry levels concerning purchase price,maintenance,away from home charging and resale value remaining more or less flat.Only the number worried about at home charging increased(by 3ppt).Resistance to EVs varies slightly by country,with the UK,Australia,Italy and NL most concerned on cost,while o

56、thers remain focussed on range.In China,the top concern is reliability,suggesting the local startups which dominate the EV ecosystem have some way to go convincing consumers on quality.Getting enthusiasts to take the plunge and converting sceptics is increasingly hard but a problem that governments,

57、OEMs and eventually retailers will need to address.They face UK,EU and US state targets for emissions,and ultimately a ban of internal combustion engine vehicle sales.GROWTH IN INTEREST FOR FULLY ELECTRIC VEHICLES FOR NEXT VEHICLE CHOICE IS SLOWING Consideration of electric vehicles before purchasin

58、g next vehicle(%considered or purchased)Q:Did you consider an Electric or Hybrid vehicle?Respondents answeringSource:OC&C Speedometer 2022 Survey,OC&C analysis.44%49%49%+5%pt45%56%58%+13%pt40%45%49%+9%pt46%49%50%+4%pt79%87%87%+8%ptPerhaps reflecting the cost of living crisis,the number of enthusiast

59、s worried about the higher purchase price of EVs grew by 8ppt over the year201920212022OC&C Hitting the brakes|15 Move now!Sector opportunitiesDe-risk new technology with usership models a usership model,such as a subscription or a short 12-18 month lease,allays consumer concern about new technology

60、(battery life,resale value,reliability).It also provides drivers with the flexibility to upgrade to new and better releases.This particularly appeals to EV enthusiasts,44%of whom would be keen to take a monthly car subscription vs 24%of sceptics.Prepare for a shake-up of service models the rise of e

61、lectric vehicles,which require less maintenance,causes a problem for OEM branded dealers which make up to 50%of profit from aftersales.Branded dealerships in Norway,where the majority of new cars have been EV for some time,have already adapted by focusing on leveraging their EV expertise to retain u

62、sed car customers in the franchise dealer for servicing.These might have otherwise gone to independents after a few years,and keeping them in the network is keeping their service bays full.Get the infrastructure ready OEMs,government and servicing companies must work together to help build infrastru

63、cture.Plenty of companies have already entered at-home and public charging,but more is needed.The majority of charging will take place at home or work but these locations will need investment and upgrades to fast chargers.Added to this,target UK EV uptake requires 30k new public charge points per ye

64、ar by 2030 this number is higher for more geographically spread countries.There is also opportunity for the automotive sector to introduce new services,such as mobile emergency charging.EV ENTHUSIASTS AND SCEPTICS SHARE COST AND CHARGING CONCERNS,WITH ENTHUSIASTS MORE WORRIED ABOUT MAINTENANCE AND R

65、ELIABILITY Concerns regarding buying an electric vehicle(%rank top 3)Q:What are your biggest concerns in considering an electric vehicle?EV Enthusiast defined as anyone who claims to be considering,likely to or will buy a fully electric vehicle the next time they purchase a vehicle.Source:OC&C Speed

66、ometer 2022 Survey,OC&C analysis.Range(how far I can drive on a charge)54%51%43%34%33%30%26%12%6%6%4%1%56%53%44%31%38%25%22%9%12%4%3%3%-2%-2%-1%+3%-5%+5%+4%+3%-6%+2%+1%-2%Cost to purchaseAccess to charging points away from homeCost of electricityAccess to charge vehicle at/near homeMaintenance costs

67、Reliability(ie risk of breaking down)Re-sale value of the vehicleI dont like the electric vehicles availableThey are not coolNo one else has oneOtherEV enthusiastsEV scepticsDelta between EV enthusiasts and EV scepticsDrivers onlyN=6,48316|OC&C Hitting the brakesWhere do consumers want to find and b

68、uy a car?Back in 2021,when people were scared to leave the house for fear of Covid infection,there was a boom in interest in sight unseen fully online car purchases,in which a vehicle is purchased and delivered to the customers door(or a location of choice)without them seeing it first.For most geogr

69、aphies,this has receded as buyers return to dealerships to check out their next big-ticket purchase in real life.Today,the proportion of consumers carrying out research in dealerships has risen.The percentage of drivers buying new cars online has fallen for all geographies except the UK,where there

70、has been significant marketing from players such as Cinch and Cazoo.The proportion of drivers who say they are going to buy their next car fully online has dropped in every geography except the UK.-15%pt-3%pt-2%pt-9%pt+25%of potential online car buyers in the UK and US,and independents are favoured

71、by 20%of potential online car buyers in the UK,US,Germany,France and The Netherlands.These players have significant opportunities to win by providing online journey options to consumers.Unbundle activitiesIt wont suit everyone,but there are consumers who want to unbundle parts of the online journey(

72、finance,part exchange)for convenience or better prices e.g.25%of UK drivers report they are likely to consider a separate car buying service rather than part exchange at dealer.There is opportunity for insurgents if they can identify cost-effective models to acquire consumers in these niches.Focus o

73、n aftersales and retentionCapturing servicing margin on vehicles for as long as possible and keeping customers coming back for their next vehicle will be critical for dealers to succeed.Investing in customer experience and CRM will be key.22|OC&C Hitting the brakesHow do they want to pay?CONSUMERS P

74、RIORITISING BUDGET IN SEARCH JOURNEY(%respondents starting with a budget in mind)Cost of living pressures are causing an increasing number(+5-10%ppt)of drivers in all countries(bar China)to start their new vehicle search with a budget rather than a vehicle in mind.Related to this,the percentage who

75、are paying for their cars via savings and part exchange alone has dropped since 2021.Source:OC&C Speedometer 2022,OC&C analysis.New car ownersUsed car owners65%76%63%61%59%60%46%50%46%62%56%62%-7%-0%20222022Delta 2022 vs 2021Delta 2022 vs 2021+10%-8%+5%+2%+4%+6%+5%+7%OC&C Hitting the brakes|23Consum

76、er leasing continues to have a bright future New cars The leasing market is highly penetrated and mainstream in all geographies.UK and German drivers express the greatest preference for leasing when asked to compare it directly with ownership.The opportunity lies in converting consumers who have tri

77、ed contract purchase with OEM dealers to try contract hire with leasing companies.Effective digital and partner distribution,retention and low-cost straight through processing will be critical for leasing companies to offset high marketing costs of acquisition and seize the opportunity.Used carsToda

78、y the used-car lease(contract hire,rather than personal contract plans or hire purchase)market is nascent,with the complexity of residual values and servicing often deterring leasing companies.However,there is a big opportunity to serve consumers unmet needs with leasing products on used cars as 30%

79、of consumers indicate they are open to it.Combined with cost of living concerns,leasing used cars represents a significant opportunity.The growing popularity of personal contract plans is supportive of this latent demand.Despite savings still being the most popular method of payment(53%of used car p

80、urchases),the importance of“ownership”continues to be less important.Over 40%of drivers in every country dont care if they lease or own their(new or used)vehicle.This highlights the opportunity for lease companies to take share,particularly in the nascent second-hand lease market where there are few

81、 options available today.Furthermore,the shortage of new cars and desire for lower monthly payments will push consumers to consider options to lease/rent with or without the option to own(typically leases are cheaper per month as the consumer only pays the depreciation on the vehicle).24|OC&C Hittin

82、g the brakesDRIVERS ARE MUCH LESS TIED TO OWNERSHIP THAN OFTEN PORTRAYED PARTICULARLY OF USED CARS How far do you agree with the following“I dont care if I lease or own my vehicle”AgreeNeither agree nor disagreeDisagree14%11%12%11%11%5%8%7%32%29%27%24%25%26%42%25%25%22%16%13%10%15%11%11%20%15%16%18%

83、20%20%19%20%9%23%29%34%34%34%20%37%Owners of new cars(%)(N=3,804)Source:OC&C Speedometer 2022 Survey,OC&C analysis.AgreeNeither agree nor disagreeDisagree21%9%10%14%14%8%15%16%28%29%26%25%25%25%37%22%32%19%19%20%14%15%15%19%12%17%21%15%16%21%13%16%7%26%24%26%31%31%20%27%Owners of used cars(%)(N=4,15

84、6)Over 40%of drivers in every country dont care if they lease or own their(new or used)vehicle.This highlights the opportunity for lease companies to take shareOC&C Hitting the brakes|25Subscriptions Subscriptions have become a part of consumer life,from entertainment to monthly coffee pod deliverie

85、s.Growing comfort with usership vs ownership has extended to the automotive sector.Around a third of consumers would consider a monthly model that includes maintenance,insurance and the ability to swap models.Interest in car subscriptions has broadly plateaued.This is due to barriers(in particular,c

86、ost)becoming clearer as the model matures.However,the underlying motivation of mitigating hassle and cost remains an unmet need for consumers and a margin opportunity for whoever can find and convince the most willing customer groups.AROUND A THIRD OF CONSUMERS WOULD CONSIDER A MONTHLY SUBSCRIPTION

87、MODEL,RISING TO 50%IN CHINA AND FALLING TO 20%IN THE NETHERLANDS.Appetite for monthly subscription model by country(N=6,483,%respondents)Move now!Sector opportunitiesRecognise the opportunity and identify enthusiasts-The 21%of drivers who are interested in both subscriptions/leasing and transacting

88、online offer opportunities for more digitally adept players to take greater share with direct-to-consumer leasing and subscription products.Focus on risk reduction-48%of those interested in subscription want it because of no surprise outlay,providing a great cost-of-living sales hook.Focus on servic

89、e/convenience,not price-the biggest barrier to subscription models is price point.Consumers dont understand their true cost of motoring and when all the costs are brought together in one payment it can drive“sticker shock”.First movers,for example,Care by Volvo,have made significant inroads with hig

90、hly interested drivers in more premium and convenience/service-led segments of the market where cost is less of a consideration.Q:If you were able to pay a monthly subscription for the vehicle of your choice(including insurance,maintenance and the ability to swap the vehicle if you wish)-and it was

91、within your monthly budget,how likely would you be to buy this offer?(N=6,483).Source:OC&C Speedometer 2022 Survey,OC&C analysis.28%9%39%16%8%22%11%28%22%17%28%8%31%22%11%29%11%31%20%9%5%4%32%45%14%21%33%11%23%12%36%32%10%15%7%Very uninterestedNeitherVery interestedDecreasing interest in monthly sub

92、scription model19%6%32%25%18%26|OC&C Hitting the brakesHow do drivers want to repair and maintain their vehicle?OC&C Hitting the brakes|27Hassle free is the watchword of how drivers want to repair and maintain their vehicle after purchase.Having seen other sectors raise the bar on consumer experienc

93、e,they are no longer content with services that put suppliers convenience above their own.Some habits are hard to break,and branded dealers remain the top choice for quality,with over half of drivers believing its worthwhile to book servicing and repair with a manufacturer garage They dont want to h

94、ave to think about costs and are increasingly turning to service plans and warranties that include service,maintenance and repair.For the actual work,consumer demands include online booking and vehicle pick-up or(even better)on-driveway repairs.However,some habits are hard to break,and branded deale

95、rs remain the top choice for quality,with over half of drivers believing its worthwhile to book servicing and repair with a manufacturer garage,and a majority willing to pay a premium for it.This tails off as cars get older,where there is still significant opportunity for franchise dealers or other

96、branded players to take share of the servicing and repair market from independents.The franchised dealer premium reputation still holds for new and used car buyers.A MAJORITY OF DRIVERS ARE WILLING TO PAY FOR SERVICING AND REPAIR BY A BRANDED DEALERSHIP,THIS IS PARTICULARLY TRUE FOR NEW CAR OWNERS A

97、mount drivers are willing to pay more for service by branded dealer(%respondents)Source:OC&C Speedometer 2022 Survey,OC&C analysis.New car owners(N=3,406)Used car owners(N=3,077)0%0-5%20%+10-20%5-10%24%35%17%22%15%11%17%26%20%13%76%of new car owners are willing to pay extra to have service done by b

98、randed dealers65%of used car owners are willing to pay extra to have service done by branded dealers28|OC&C Hitting the brakesIn the UK alone,there were close to nine million unique visits to service,maintenance and repair(SMR)websites in the 12 months to August 2022Booking goes digitalConsumers no

99、longer have time for a mechanic to wipe down their hands and answer the phone.Digital booking is important to 22%of consumers.This has accelerated the growth of booking websites like Fixter,which was recently acquired by Renault.In the UK alone,there were close to nine million unique visits to servi

100、ce,maintenance and repair(SMR)websites in the 12 months to August 2022:growing from around five million in the 12 months to March 2020.TODAY CONSUMERS ARE ALREADY LOOKING TO ACCESS SMR ONLINE,WITH C.9M UNIQUE VISITORS TO SMR AGGREGATORS Unique website visitors,leading SMR aggregators(#m)Source:Simil

101、ar Web,OC&C analysis.Who can fix my carBook my garageServicing stopFixter48%39%19%26%11%18%22%17%5.48.7Sep 2019-Aug 2020Sep 2021-Aug 2022+27%OC&C Hitting the brakes|29Stress-free servicing subscriptionsA number of drivers(ranging from 12%in Italy to 34%in the US)would be willing to pay more for a fi

102、xed bundle service or fixed monthly cost for service,separate to their car purchase.In general,used-car owners are more willing to pay for this service.The highest appetite for a servicing bundle is in the US and China.The perceived value is in risk and hassle reduction,where one in three used-car o

103、wners are willing to pay more than they spend today to access a convenient product.This drops to one in five in Australia and the UK,and to only 13%in Italy.WILLINGNESS TO PAY MORE FOR FIXED BUNDLED SERVICE BY COUNTRY AND CAR OWNER TYPE(N=6,483,%respondents)New car owners(N=3,406)%willing to pay mor

104、e than they do today29%29%25%19%18%15%7%15%Source:OC&C Speedometer 2022 Survey,OC&C analysis.Used car owners(N=3,077)%willing to pay more than they do today34%33%19%18%17%21%9%17%A lot lessA little lessA lot moreA little moreThe same9%11%13%42%25%9%3%2%16%49%31%2%2%2%3%2%5%3%9%8%11%62%17%9%11%19%52%

105、16%13%16%17%50%14%7%17%10%52%19%11%11%16%56%12%16%14%15%62%6%26%51%15%59%12%15%63%13%2%3%7%14%55%15%3%13%59%16%3%9%57%19%6%14%54%27%2%13%49%23%6%30|OC&C Hitting the brakes Move now!Sector opportunities Identify the unmet needs not all consumers want the same thing,and many are prepared to pay extra

106、for convenience or extra service such as mobile services.Despite the cost of living crisis,there are still spenders out there.Offer cost certainty to reduce cost of living shocks fixed price repair/subscription remains something consumers want but is underserved by the market.Customers are confused

107、by the mix of warranties,service plans and complex terms and exclusions.Existing products often offer more value to dealers(in commissions)than to consumers.Sell simplicity not services whilst there are longstanding service plan products and warranty products in most markets,there are very few innov

108、ative,consumer-centric propositions that bring service and repair together in a simple way.cinchCare,part of the eponymous UK digital used-car retailer,is a rare exception in the UK.It has achieved attach rates of greater than 30%for its 35 a month warranty,breakdown assistance and servicing bundle.

109、OC&C Hitting the brakes|31Winning strategies for 2023The cost of living crisis throws further fuel on the flames of auto-industry disruption.As the sector adapts to the big trends EVs,the acceptance of usership over ownership and a need to serve its customers online in different ways it must do so i

110、n an atmosphere of lower short-term demand.This is not only a retail conundrum,it impacts leasing companies,finance houses,classifieds,servicing providers,insurers,data providers,and OEMs.32|OC&C Hitting the brakesThe cost of living crisis sets a new challenge:businesses will need to find ways to co

111、ntain costs and offer value products which reduce risk for stretched consumers.Interest in EVs may have slowed,but it is still strong:significant numbers will feed into the younger end of the vehicle car parc in coming years,and those downstream need to be ready.Forget about sharing:a lot of money h

112、as been spent chasing this small,saturated demographic.Consumer needs and expectations are diversifying one size doesnt fit all Only 23%of drivers are true carservatives.To keep up with the majority any automotive business will have to engage with the“big three”(EV,Online,and subscription models).Th

113、e 17%of drivers who are early adopters,keen to adopt every new trend,are likely to be more resilient to cost of living and will be the fuel for companies looking to disrupt the industry.Regardless of the economic backdrop,there are still consumer segments that will pay for convenience and hassle red

114、uction,creating room for new product launches.The influence of online in consumer buying journeys wont supplant physical presence,but the rise of multi-channel buying journeys will create a window to rethink physical footprints and create new opportunities for insurgents.What consumers want is chang

115、ing rapidly.Now is the time to be bold and start product and service design with a blank sheet of paper.Winning players will bust out of the norms.Under the hood of the Speedometer The Global Automotive Disruption Speedometer is now in its third year.We surveyed 9,089 consumers,of whom 7,960 were dr

116、ivers,asking 45 questions on their car decisions and driving habits to understand how consumer attitudes and behaviours towards the auto industry are changing,and the impact this will have on the industry.Drivers were selected from a nationally representative sample and online samples were collected

117、 between June 2022 and July 2022.The study covered eight countries:the US,China,the UK,Germany,France,Italy,Netherlands,and Australia.Every business will need to craft their own strategy to respond,but there are some universal lessons:OC&C Hitting the brakes|33OFFICESBelo HorizonteBostonHong KongLon

118、donMelbourneMilanMunichNew YorkParisRotterdamSo PauloShanghaiSydneyW OC&C Strategy Consultants 2022.Trademarks and logos,including Uncommon Sense,are registered trademarks of OC&C Strategy Consultants and its licensors.Get more detailed analysis and advice on your industry This report just scratches

119、 the surface of the in-depth insight the 2022 Speedometer report delivers on the automotive industry.Whether you sit in vehicle manufacturing,retail,automotive services,leasing/rental or insurance,OC&C has the expertise and experience around the world to help you come out on top.Drop us a line today

120、,wed love to chat.Felicity Latcham,Associate Partner,LMark Jannaway,Partner,LJeremy Barker,Partner,Sydney Jean-Baptiste Bertrand,Associate Partner,Parisjean-Ye Chen,Partner,New YJohn Evison,Associate Partner,LNicholas Farhi,Partner,London&New YBram Kuijpers,Partner,RPascal Martin,Partner,Greater China Alberto Regazzo,Partner,M