Consumers want cars but not necessarily to own them
This presents opportunities for automakers to apply analytics and cognitive capabilities to develop new vehicle options.
Of those surveyed, 42 percent would consider alternative ownership modes such as subscription.
"A New Relationship – People and Cars," developed by the IBM Institute for Business Value (IBV), reports that consumers show a high level of interest in self-enabling vehicles, or cars that can learn, heal, drive and socialize.
These capabilities include autonomous, self-driving cars, vehicles that can be fixed without human intervention and the implementation of cognitive computing to learn and assimilate to the driver's behaviors, the vehicle itself and the surrounding environment.
24 percent of respondents were very interested in fractional ownership of vehicles.
Through the continually expanding landscape of sensors and cognitive computing, manufacturers will be able to better understand the vehicle's issues, develop technology and recommend solutions, often times, without the driver bringing the vehicle in for servicing.
The personal car will continue to be a primary mode of transportation, as its convenience remains very attractive to consumers. However there is a shift underway in what it means to own a vehicle.
Of those surveyed, 42 percent would consider alternative ownership modes such as subscription pricing, while another 24 percent of respondents were very interested in fractional ownership of vehicles.
Thirty-nine percent of consumers would consider a car -sharing model and 36 percent surveyed would choose the on-demand ride sharing option.
Options for car sharing, on-demand ride sharing and peer-to-peer rental not only give consumers the convenience of using a car without owning, but also gives car owners the opportunity to receive a return on investment on their underutilized auto.
To compensate for consumer shifts in vehicle usage, automakers will need to develop new ownership models that meet consumer expectations and create alternative revenue-streams.
While globally 67 percent surveyed agreed that it is still important to buy a vehicle in person from a dealership, original equipment manufactures (OEMs) and online brokers are empowering consumers to make smarter purchasing decisions.
Forty-six percent of consumers said they would be very interested in purchasing online from an OEM and 38 percent would purchase online from third-party broker, if offered.
To remain a trusted source in the retail chain, the study recommends automakers transform the buying experience with analytics and social media analysis to create more highly personalized interactions with potential customers. ■