COVID-19 and the automotive consumer

The health and economic repercussions of this pandemic will force many industries to completely reinvent themselves. That is why the Capgemini Research Institute is releasing a series of research notes with pragmatic guidance on how organizations can take action on the things that matter in the wake of COVID-19.

Last week, we examined how consumer products and retail organizations can drive operational resilience and maintain their pre-crisis focus on customer relationships and engagement. This time with COVID-19 and the automotive consumer – How can automotive organizations re-engage consumers and reignite demand?, we broached key issues that will shape the future of the automotive industry. We showcase actions and examples that organizations can emulate to boost resilience and build their recovery plans.

To these ends, we surveyed more than 11,000 consumers from 11 countries representing 62% of global annual vehicle sales and found that health and safety concerns will continue to shape consumer behavior even after this crisis subsides. There will be a marked preference for individual mobility over public and shared modes of transport. Our research also shows the rekindling of interest in vehicle ownership among younger consumers along with a preference for digital engagement channels. At the same time, however, inevitable economic fallout and trends like work-from-home could dampen demand.

In a post-pandemic world, automotive organizations will have to respond to and leverage these shifting consumer trends to gain a competitive advantage. Those who are leading the way in offering a digital customer experience and innovative business models such as subscription and pay-per-use, are well placed to weather this storm. They also show us valuable lessons and examples of agile innovation for the automotive consumer.

As we navigate this unprecedented crisis together, we hope that these research notes shed some light on how consumer sentiment is changing for the automotive industry. For more information on the subject, contact us.

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