Consumers in Asia-Pacific (APAC), including India, will prefer purchasing electric vehicles (EVs) in the future.
There will be a shift in preference, with more than half of consumers, as much as 53 per cent globally and 60 per cent in APAC including India, indicating going for a hybrid electric vehicle (HEV), according to a study released by Zebra Technologies Corporation.
This survey — Automotive Ecosystem Vision Study — said this increasing demand for EVs comes with challenges as 68 per cent of global automotive industry decision-makers while it is 60 per cent in APAC including India, say they are under high pressure to produce next-generation (electric) vehicles, while 75 per cent of them (7 per cent in APAC including India) are under high pressure to deliver products that are more eco-friendly, sustainable, and safer for the environment.
The survey was conducted from August to September 2022, with participation from 1,336 respondents globally, including industry decision-makers, fleet managers and consumers. In APAC, the 350 respondents were surveyed across India, Greater China, Japan, and South Korea.
Despite a fluctuating economy, automotive manufacturers are ready to invest in technology innovation as seven-in-10, which is 74 per cent globally and 69 per cent in APAC, expect to increase their tech spend and six-in-10, which is 67 per cent globally, 63 per cent in APAC, plan to increase their manufacturing infrastructure spend in 2023, according to the study.
The study also highlighted consumers across generations pushing automotive manufacturers’ acceleration to technology innovation as eight-in-10 say sustainability and eco-friendliness are key priorities in their vehicle purchase and lease decisions.
Eighty-seven per cent of Millennials prioritise sustainability in their vehicles followed closely by 78 per cent of Gen Xers and 76 per cent of Baby Boomers. Within APAC, 85 per cent of consumers were aligned with these key priorities, consisting of 92 per cent of Millennials, 83 per cent of Gen Xers and 72 per cent of Baby Boomers prioritise sustainability the highest.Consumers are driving the growing emphasis on personalisation – the ability to customise a vehicle to their liking. According to the study, nearly four-in-five consumers say personalisation options factor into their decision to purchase a vehicle, and eight-in-10 fleet managers share these same requirements for sustainability and personalisation.
APAC consumers resonate with this most strongly when compared with their global counterparts, with 86 per cent prioritising personalisation options in their purchasing decisions, and 92 per cent of fleet managers sharing the same requirements.
While nearly 80 per cent of automotive industry decision-makers globally, while it is 77 per cent in APAC including India, recognise consumers expect more sustainable and personalised vehicle options today, around seven-in-10 concede it’s difficult to keep up with increasing customisation demands. As a result, three in four automotive manufacturers globally say a top priority is to build strategic partnerships with tech companies for their next generation of production.