Millennials are looking at alternatives to own vehicles: Deloitte Report 2019

Our Bureau Mumbai | Updated on June 24, 2019 Published on June 24, 2019

Deloitte on Monday released its ‘2019 Global Automotive Consumer Study’, which found that consumers in India ‘feel empowered trusting the power of digital solutions that make their commute safer’. The report shows 84 per cent of the respondents feel connected vehicles will be beneficial in providing suggestions for safer routes, with updates to improve road safety, and prevent potential collisions.

“India is at the cusp of digital transformation as we see a whole new way of engagement, interactivity, and consumption pattern. With that, the future is truly going to be driven by mobile connectivity and digital power. Even though the daily usage of personally owned vehicles in the country is quite high, cumulative vehicle sales have seen a sharp decline over the past year,” said Rajeev Singh, Partner, Deloitte India, commenting on the future of mobility in India and launch of the report. As a part of Deloitte’s latest Global Automotive Consumer Study, over 10,000 consumers across Australia, China, India, Japan, the Republic of Korea, and South-East Asia shared their views on critical issues impacting the automotive sector, the company said in a release.

The report stated that 76 per cent of Indian consumers are in favour of connected vehicles. Shared mobility is another trend which is gaining momentum in India, it said.

The report said, “51 per cent of Gen Y/Z users are questioning the need for an owned vehicle. Currently, 47 per cent of consumers use their own vehicle everyday which is expected to increase to 50 per cent in the next three years,” it said.

Over 48 per cent of consumers find relative comfort in OEMs to manage the data being generated and shared by a connected car; 70 per cent are concerned about the concept of biometric data being captured and shared with external parties while indulging in connectivity; 64 per cent feel that media reports of accidents involving autonomous vehicles have made them more cautious of the technology and 48 per cent agree that autonomous vehicles will not be safe.

Generational divide

“The report uncovers a clear generational divide when it comes to shared mobility. Compared to the older generation, younger consumers are more likely to understand the idea of shared mobility, and to question whether vehicle ownership is a necessity. Therefore, ride-hailing has been integrated in some markets and the concept is progressing in India,” Deloitte said in a release.

With respect to electric mobility, that the concept has captured the interest of the consumers globally. In India 39 per cent of survey respondents preferred a hybrid, battery, or an alternative to traditional drive-trains for their next vehicle.

Published on June 24, 2019

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