Based on the insights that we were able to capture through our comprehensive survey, we refuse five myths that have been established in the world of automobiles. In each case, the reality is somewhat different and requires automakers to take immediate action. Our suggested measures should help them better understand the evolving customer preferences and take the necessary steps to align their businesses for continued success.
What is a “sustainability-minded driver”?
We use the term “sustainability-minded drivers” for car owners and drivers who rated themselves as either an 8, 9 or 10 with respect to sustainability on a scale in which 10 = “extremely environmentally concerned” and 1 = “not at all environmentally concerned.” This group accounts for 64% of the respondents, with the others referred to as “less-sustainability-minded drivers.”
What do manufacturers need to do now?
Automakers can’t let government regulations dictate the speed of their sustainability journeys. Instead, they must listen to and focus on what customers want—and act now:
- They must move quickly to embed sustainability into―and communicate it broadly across―their brands.
- They must transition their product portfolios toward NEVs and develop a holistic approach for new and used car sales as well as service and repairs.
- They must rethink their pricing strategies to take advantage of the margin potentials in both their sales and service operations.
- They must improve the digital experience for customers across all points of the sales and ownership journeys.
- And they must establish or join a broader ecosystem with a diverse group of players to realize the full potential of sustainability.
The road for sustainability recognition and dominance is still wide open: The automakers that can move quickly will be well-positioned to meet consumers’ preferences for sustainable vehicles; those that hesitate will likely lose the race.