Consumers hesitant about spending on AV, EV technology, survey shows

Consumers around the world are unsure about spending their money on autonomous and electric features, a survey released at CES by global consulting firm Deliotte showed.

Fifty-eight percent of U.S. respondents to the 2020 Global Automotive Consumer Study said they are unwilling to pay more than $500 for autonomous features.

However, the study said there is some evidence consumers have become more willing, over the last five years, to pay "something" more for autonomous and alternative engine technologies, with increases from 1 to 9 percentage points in every country surveyed from 2017 to 2020.

In 2020, 48 percent of U.S. consumers said they think AV technology is unsafe, and 68 percent said media reports of accidents involving autonomous vehicles contributed to making them cautious of the technology. Fifty-one percent said they are concerned by the idea of autonomous vehicles being tested in areas where they live.

In both India and China, consumer distrust in the safety of AV technology increased 10 percentage points from 2019 to 2020.

"What's critically important to consumers is safety," Joe Vitale, global automotive sector leader for Deloitte, told Automotive News. "As more accidents and deaths occur, even though it's a fraction of the 1.2 million deaths that occur every year from vehicles, it has caused consumers to be concerned about whether the technology has matured enough and whether they can trust their families and children in them."

"Underlying these massive r&d investments is the assumption that consumers will actually pay for advanced vehicle technologies when they appear on the market," Vitale said in a statement. "As consumer skepticism gains momentum, automakers should rationalize returns on invested capital to remain profitable as consumers' desires to purchase new technologies continue to wane."

The survey showed 57 percent of U.S. consumers would be more comfortable riding in an AV with a government safety certification. Overseas, a larger majority — 77 percent in China and 80 percent in India — said they would be more comfortable with a government certification.

In 2019, just 29 percent of U.S. respondents to the Deliotte survey said they were actively considering purchasing a hybrid electric or battery-electric vehicle. In 2020, that category increased to 41 percent.

Consumers are also still "uncompromising" in their willingness to pay more for EV technology, Vitale said.

Thirty-four percent of U.S. consumers said they wouldn't be willing to pay more for an EV, while 29 percent said they would pay less than $1,000 more.

"Although most individuals say they want to do something that is beneficial for society and the environment, the proof is when are they willing to pay more," he said. "Many consumers feel that they shouldn't pay more but should, in fact, pay less for electric vehicles because they're providing a value to society."

Consumers also are concerned about the range of full battery-electric vehicle and charging infrastructure funding. Even with an average travel rate of about 27 miles per day, 41 percent of U.S. study respondents said they expect a BEV minimum driving range of at least 300 miles.

"What consumers say they want sometimes is influenced by whether or not they're willing or able to pay for that additional value of new technology," Vitale said.

"We're getting towards the tipping point," Vitale added. "The shift is going to have a profound impact on the value chain and the return for companies' investments."