Automotive News Canada - March 2021 - 20

20

PANDEMIC IS
PULLING PLUGS

* MARCH 2021

The Deloitte report found
consumer interest in hybrids and
battery-electric vehicles has fallen
just as automakers prepare to
increase the selection of EVs.
PHOTO: ISTOCK

Cost is the key driver
in a vehicle purchase,
and that rules out
electrification for many

research leader at Deloitte LLP.
The survey underlines how much
Canadian automotive consumer preferences have shifted during the pandemic, which has caused unemployment rates to rise and contributed to
greater economic uncertainty.
According to the survey, 77 per
By JOHN IRWIN
AUTOMOTIVE NEWS CANADA
cent of consumers looking to purchase an EV hope to buy one for less
than $50,000, with just three per cent
CANADIAN CONSUMERS,
looking for something that costs
conscious of their spending during
more than $75,000. Few EV options
the economic downturn because
currently exist in the sub-$50,000
of COVID-19, are less interested in
range, complicating matters for those
hybrids and battery-electric vehicles
consumers, Robinson said.
than they were before the
" Considering the averpandemic, a recent study
age price of a vehicle is,
found.
in general, approaching
According to the 2020
$40,000, " he said, " if you
report by Deloitte, 59 per
look at EV offerings, even
cent of Canadian automoif you throw hybrids in
tive consumers said they
there, you can very quickwere interested in their next
ly approach or blow right
vehicle having a gasoline or
through that $50,000 threshdiesel-powered engine, up
old. "
from 46 per cent. Interest in
It is likely that the ecohybrid vehicles dipped to 31
nomic fallout of the panper cent of consumers surRobinson:
demic will linger even
veyed from 37 per cent, while Pandemic,
after the health crisis
resulting
interest in battery-electric
fades, Robinson said.
vehicles fell to seven per cent economic slump
Automakers will need to
means consumers be cognizant of that as
from 13 per cent.
likely will buy not
Consumer interest in
they roll out their EVs, he
EVs appears to have dipped necessarily what
said.
just as automakers prepare they want but what
" You want to be able to
dramatically increase their they think they
line up the planets, so you
can afford.
offerings of electric vehisit squarely at the interFILE PHOTO
cles.
section of what people
The pandemic and its economwant to buy and being able to offer
ic fallout have forced consumers
the technology and products at the
to revolve their decision-making
price point that people want to pay, "
" around not necessarily what they
Robinson said.
want to buy but what they think
Deloitte surveyed 1,047 Canadians
they can afford to buy, considering
of driving age via email as part of its
the financial position that they're
2021 Global Automotive Consumer
in, " said Ryan Robinson, automotive
Study. - ANC

OTHER FINDINGS
CHARGING
Most people who intend
to buy an electric vehicle
plan to charge it at home:
 74%: Home charging
 22%: On-street/public charging
 4%: At work

SAFETY

Consumers still appear to be
fearful of safety in connected
vehicles:
 60% say they fear someone
hacking into a connected vehicle
and risking their safety
 49% say fully self-driving cars
will not be safe
 44% say that as vehicles
become more connected via
wireless Internet, they become
more beneficial

FEATURES
Safety technologies are
still more
desired than
most other
features. The
percentage of
respondents
who said the following features were
somewhat or very important to have
in their next vehicle purchase:
 Blind-spot warning/alert: 71%
 Heated/cooled seats: 65%
 Automatic emergency braking: 63%
 Built-in navigation system: 62%
 Physical knobs/buttons
for controls: 60%
 Lane-departure warning: 58%
 360-degree camera system: 57%
 Adaptive cruise control: 55%
 Automatic/dual-zone climate
control: 55%
 Built-in Wi-Fi hotspot: 41%
 Electronic parking assist: 41%
 Apple CarPlay/Android Auto
interface: 37%
 Over-the-air software updates: 34%
 Semiautonomous drive mode: 28%

IN PERSON
ALTERED PLANS
More than one-third of
respondents said they altered
their timeline for purchasing
their next vehicle because of the
COVID-19 pandemic:
 64% have not altered their plans
 25% intend to acquire their
next vehicle later than originally
planned
 12% intend to acquire their
vehicle sooner than originally
planned


Of those who plan to acquire
their vehicle later than originally planned:
 36% said they would be somewhat or very likely to acquire a
vehicle sooner if they received a
preapproved special finance rate
or lease payment
 33% said it would be not very
likely or not at all likely to acquire
a vehicle sooner if they received
special financing
 31% were neutral


Of those who intend to buy a
vehicle sooner than originally
planned:
 64% said the availability of government stimulus programs influenced their decision
 32% said the programs had very
little or no influence
 4% said no stimulus program
was available to them

LOAN, LEASE, SUBSCRIPTION
The percentage of consumers who said the following factors related to
loans, leases or subscription accounts
were important:
 Receiving the lowest possible rate
for my credit rating: 39%
 Easy process to pay or set up
auto-pay: 37%
 Flexibility (e.g., early termination,
vehicle swap): 32%
 Convenience: 32%
 All-in rates: 26%
 Choosing a recognizable name
and trusted, established auto
lender: 23%
 Access to loan payoff and equity
status: 22%
 Quick to speak with a live agent
on the phone: 17%
 Simple/easy website/mobile app
to manage account: 17%
 Receiving customized vehicle offers
for accessories, services, etc.: 12%
 Ability to text or message your
auto lender: 7%

Most consumers
still want to purchase
their vehicles in person at a dealership:
 81% said they would most prefer
to buy in person
 11% said they would most prefer
a fully virtual process
 8% said they would most prefer
a partially virtual process


Among 18- to 34-year-olds, 71% say
they would most prefer an in-person
shopping experience, compared with 78%
of 35-54-year-olds and 91% of those 55
or older.

SAYING NO TO VIRTUAL
The following reasons were
listed by consumers as main factors in not being interested in
acquiring a vehicle through a
virtual process:
 I have to see the vehicle before I
buy it: 80%
 I have to test-drive the vehicle
before I buy it: 67%
 I prefer to negotiate the price of
the vehicle in person: 46%
 I want to have my questions
answered by a real person: 43%
 I don't feel comfortable making
such a big purchase online: 43%
 I want to have a personal contact
in case something goes wrong:
31%
 I would like to build a relationship
with the dealer for service: 21%
 I want to be treated like my business is important: 18%

RESEARCH
More than one-third of
vehicle owners said they
did not conduct research
on financing options
before acquiring their vehicle:
 35% did not research options
 20% spent less than one hour
 18% spent one hour to less than three
hours
 13% spent three hours to less than five
hours
 14% spent five hours or more
Source: Deloitte, 2021 Global
Automotive Consumer Study
Automotive News Canada - March 2021

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