Advanced Technology Update & Customer Experience
Insights for South Africa
Our latest Global Automotive Consumer Study continues to examine consumer interest in advanced automotive technologies, including autonomous vehicles, and also delves into consumer expectations surrounding the purchase funnel, the dealer experience, and the digital shopping experience.
1. Changing business models
For automotive companies, technological change brings the need to confront oneself with the question "What does it mean to be an automotive company in the future?" It is vital for automotive companies to adapt their business models to new demands. We see disrupters making significant investments in the automotive industry. How do traditional players adapt to the changing business model?
2. Reshaping investment norms
The drivers and determinants of corporate value have evolved: tangible assets no longer exclusively dictate a firm’s value. Leveraging technology and data analytics is key for companies to stay on the radar of investors. We describe 5 new roles that will exist in the future automotive industry: from hardware providers and fleet operators to operating system providers, data aggregators and mobility advisors.
3. Evaluating the big bets being made on hybrids, electric and autonomous vehicles
The study's findings suggest that SA consumers may be warming to the concept of fully self-driving vehicles: 43 percent of SA consumers in this year’s study feel that autonomous cars will not be safe, which is down from last year’s 59 percent. It still leaves consumers in most markets doubting the safety of this technology. Safety, government regulation, brand trust, and cost are all major factors determining South Africa’s consumer acceptance of these new technologies.
4. Customer experience
OEMs and automotive dealers need to change the way to reach the South African consumer. An example is that across the major auto markets consumers are interested in digitally completing all the admin behind a purchase, including preapprovals and need only walk to into a dealer for the test drive and customer experience, with a smooth handover to aftersales.