Carmakers should act fast to respond to
consumers’ desire for more sustainable mobility
Nearly two-thirds of consumers are “sustainability-minded
drivers,” rating themselves as very or extremely environmentally
concerned, which will require automakers to evolve their offerings
to meet increased demand for automotive sustainability, according
to a report by Accenture (NYSE: ACN).
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The Accenture report “Busting automotive
sustainability myths” looks at the key challenges for car
manufacturers now and in the future in relation to the rise of
sustainable and digitized mobility (Photo: Business Wire)
Based on a survey of 8,500 consumers from the U.S., China, and
eight countries in Europe, the report, “Busting automotive
sustainability myths,” looks at the challenges facing automakers
considering the demand for sustainability and digitization related
to mobility. The report is part of Accenture’s “What digital
drivers want” series.
A key finding: Sustainability is no longer a secondary concern
for car buyers and drivers. Not only are 64% of the respondents
sustainability-minded drivers, but most prefer that their next
vehicle be a new-energy vehicle (NEV) — i.e., battery electric,
hybrid electric, natural gas, plug-in hybrid electric, flexible
fuel or fuel cell electric. They don’t want new vehicles with
internal combustion engines. And it’s not just
sustainability-minded drivers who would prefer an NEV for their
next vehicle, as more than half (53%) of less-sustainability-minded
drivers also say they would prefer NEVs.
The report also showed that no brand is perceived as the
undisputed leader for the best sustainability concept globally. In
fact, nearly as many drivers believe that BMW or Audi has the best
sustainability concept (11% each) as believe that Tesla does (12%).
In many cases, respondents were more likely to pick automakers
based in their home markets as having one of the best
sustainability concepts — so Americans lean toward Teslas and
Europeans toward BMWs and Audis, for example. Even in service and
repairs, more than one-quarter (28%) of sustainability-minded
drivers don’t have a clear preference for a brand with the best
sustainability concept.
“Despite popular belief, the race for becoming — and being seen
as — a sustainable car brand isn’t over yet,” said Axel Schmidt, a
senior managing director at Accenture who leads its Automotive
industry practice globally. “The market for electric vehicles was
the only significantly growing segment in 2020. Drivers are ready
for sustainable mobility, but there are still some hurdles,
starting from the charging infrastructure to the still relatively
high price per kWh.”
In sustainability, the brand takes a back seat
Sustainability-minded drivers are not committed to a particular
brand. In fact, 97% of them would change brands for a
more-sustainable vehicle, and 99% would do so for greater
sustainability in service and repairs. The report notes that
automakers that fail to compete for the hearts and minds of
sustainability-minded drivers — i.e., by not making the necessary
sustainability investments — will lose customers to competitors
that have shown a stronger focus on and commitment to
sustainability.
“Drivers are increasingly challenging long held beliefs amongst
many top executives and marketeers in the automotive industry that
consumers would never be willing to pay a premium for
sustainability,” said Peter Lacy, chief responsibility officer and
global sustainability services lead at Accenture. “In one of the
most disrupted industries globally - in the face of connected
technologies, electrification of transport and autonomous vehicles
- embracing and helping sustainability minded-drivers translate
their values into their purchases is and will be a major
competitive battlefield for the future.”
Drivers will pay a premium for sustainability Among the
many automotive myths the report busts is that most drivers are
very price-sensitive and won’t pay more for greater sustainability.
The report finds that sustainability-minded drivers are not only
willing to switch to NEVs but would pay a higher price for a
“sustainable vehicle.” For instance, 30% of sustainability-minded
drivers are willing to pay 1% to 5% more for a sustainable vehicle,
with an additional 60+% willing to pay at least 6% more — including
4% who, surprisingly, say they would pay 25% more.
Sustainability-minded drivers are also willing to accept certain
other trade-offs for a sustainable vehicle, with more than six in
10 willing to accept a car with a less-attractive, more-functional
design (63%) or a car with reduced performance (62%). In other
words, sustainability-minded drivers are willing to accept
trade-offs on factors that many in the automotive industry believe
are critical, non-negotiable purchase criteria.
For more information and to view a copy of the report, please
visit: Accenture.com/AutoSustainabilityMyths
About the Research For this study, Accenture surveyed a
diverse and randomized group of 8,500 customers from seven
countries: China (2,500), the U.S. (1,000), Germany (1,000), the
U.K. (1,000), France (1,000), Italy (1,000) and Norway (1,000). The
online survey was structured, conducted and analyzed along the
dimensions of (1) [driver] demographics; (2) vehicle sales; (3)
vehicle service and repairs; and (4) connected services. In this
regard, the group of sustainability-minded drivers with
significantly more significant concern for ethical and
environmental standards could be identified and differentiated to
participants, who are less sustainability-oriented. We also
integrated our automotive industry expertise and project experience
to introduce case studies of leading automakers that, in our view,
can be considered best practices for certain aspects related to
sustainability.
About Accenture Accenture is a global professional
services company with leading capabilities in digital, cloud and
security. Combining unmatched experience and specialized skills
across more than 40 industries, we offer Strategy and Consulting,
Interactive, Technology and Operations services — all powered by
the world’s largest network of Advanced Technology and Intelligent
Operations centers. Our 569,000 people deliver on the promise of
technology and human ingenuity every day, serving clients in more
than 120 countries. We embrace the power of change to create value
and shared success for our clients, people, shareholders, partners
and communities. Visit us at www.accenture.com.
Copyright © 2021 Accenture. All rights reserved. Accenture and
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Youssef Zauaghi Accenture +49 175 5766458
youssef.zauaghi@accenture.com
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