Four ACES are rocking the traditional automobile industry. McKinsey & Company reveals these major trends in its report Profiling Tomorrow’s Trendsetting Car Buyers.

1) Autonomous cars

Despite the negative publicity arising from accidents during road tests, autonomous cars are enjoying strong and steady interest since 2017. 46% of the survey respondents feel good about the idea of using an autonomous vehicle.

The typical user of this type of car is a Chinese man under age 50 who lives in a large city and who owns a high-end vehicle. McKinsey highlights that enthusiasm for autonomous driving is stronger in China than elsewhere.

2) Connectivity

Connectivity will change car travel completely, McKinsey confirms. Almost 70% of Chinese respondents said they would change car brands to improve connectivity. The percentages elsewhere in the world are much lower, at 34% in the US and 19% in Germany.

Currently, connectivity is omnipresent in new car models. These functions are increasingly considered necessary for OEM and a matter of course by consumers, the report confirms.

The survey respondents say that they would devote 20% of their time consuming infotainment while riding in driverless car. Online shopping would take up 8% of their time. For the rest of the time, the respondents would to talk to passengers, sleep or look out the window. 

3) Electrification

Despite its well-established presence in the automobile market, electrification continues to raise many questions. The general public still has knowledge gaps in this area, McKinsey finds.

The survey shows that consumers are becoming increasingly knowledgeable about powertrains as electrification gains ground. Least is known about mild hybrid vehicles, but progressively more about full hybrids, plug-in hybrids and battery-electric vehicles.

Half of the respondents claimed that they would consider an electric vehicle as their next car purchase, but more than 60% said they would not pay a premium for it.

4) Smart mobility

Smart mobility is democratizing the car and making ownership superfluous. This mode is proliferating, McKinsey reports. Among respondents who do not own a car, 36% cited car sharing as the main reason. This percentage is 18 points higher than in 2017. Over 60% of respondents under age 30 would trade in their car for a robo-taxi.

Methodology

Since 2014, the McKinsey & Company survey aims to understand emerging automotive technologies that are gradually changing the industry, along with the way consumers and manufacturers view the market. 

The sample represents 3000 respondents from China, the United States and Germany.