STOCK TITAN

Wavering brand loyalty challenging car manufacturers globally – Fifth car user survey by Asahi Kasei

Rhea-AI Impact
(No impact)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Asahi Kasei’s latest global car user survey reveals significant shifts in brand loyalty and EV buying behavior across four key automotive markets: Germany, the USA, China, and Japan. The survey highlights that over half of car users in Germany and the USA, and 79% in China, are inclined to switch car brands. Generation Z shows the lowest brand loyalty.

Common complaints about current vehicles include poor gas mileage, storage, and excessive noise, influencing buyers to prioritize quality and running costs. In China, the desire to try new premium brands is a major motivator.

Despite growing market shares for pure electric vehicles (EVs), willingness to buy EVs has not drastically changed since 2020. In the US, willingness decreased by 14 percentage points due to fading subsidies and high costs. Technological advancements in battery performance, lifetime, and safety are important for wider EV acceptance.

Key EV purchasing factors vary by region: driving range in Germany, battery lifetime in the US, and safety in China.

Positive
  • None.
Negative
  • None.

DÜSSELDORF, Germany & NEW YORK--(BUSINESS WIRE)-- Asahi Kasei’s newest global car user survey gives insights into the brand loyalty and buying behavior of car users in the four major automotive markets: Germany, the United States, China, and Japan. It also provides background information on technological reasons for consumers’ hesitance to switch to electric cars.

Fig. 1: Brand Loyalty (Graphic: Business Wire)

Fig. 1: Brand Loyalty (Graphic: Business Wire)

In its fifth annual survey, the Japanese technology company Asahi Kasei asked car users in the four major automotive markets about brand loyalty and key motivators for buying electric vehicles (EVs).

The results of the newest survey confirm the trend in recent years - with tightening competition, new manufacturers, and changing customer needs, brand loyalty is wavering worldwide. More than half of the respondents in Germany and the USA plan to change the brand of their next car. Customers in China are remarkably open to switching car brands, with 79% indicating they would choose a model from a different manufacturer. Looking at different age groups, Generation Z-respondents (born between 1995 and 2010) showed the lowest degree of brand loyalty, indicating that the younger the car users are, the less connected they feel to a certain brand.

To reignite brand loyalty, car manufacturers and suppliers must understand the end customers’ needs and find ways to differentiate from the increasing competition. When asked about the most annoying factors in their current car, car users in all four regions cited “poor gas mileage/fuel consumption,” “not enough storage space,” and “too much noise while driving”. This was also reflected in the main motivation to change the car brand, with a third of respondents in Germany and the US citing “quality aspects” as an important factor. In addition, “running costs” are prevalent motivations in all markets. In China, the “desire to try something new” is the chief incentive for switching to a different vehicle brand - specifically to premium brands. This coincides with the purchasing influence of “increasing brand image” by established premium car manufacturers, in contrast to volume manufacturers, who are currently losing market share in China.

Since the first survey was conducted in 2020, fuel/power efficiency and running costs have been the most influential factors in the buying process. Notably, the results for all features influencing purchasing choice have been consistent across each survey.

Enhancing battery performance key for convincing potential EV buyers

Stimulated by governmental subsidies, technological improvements and a growing network of charging stations, market shares of pure electric vehicles have been slowly growing in recent years, especially in Western markets and in China. 69% of the respondents in China said it is “likely” or “very likely” that the next car has a pure electric drive. However, compared to 2020, the willingness to buy an electric vehicle has not significantly changed. While in China and Germany it rose by 6 percentage points respectively 8 percentage points, respectively, there was a 14 percentage point decrease in the US. The fade out of governmental subsidies and the high cost of electric vehicles are key factors for this consumer sentiment at the end of 2023.

These findings indicate further technological advancements need to be achieved to convince most car users. In addition to cost aspects, further advancements in battery performance, lifetime, and safety will be needed to improve the acceptance of electric vehicles across all major regions. The main drivers for switching to an electric vehicle differ among the regions: while driving range is the major factor for car users in Germany, 34% of the respondents in the US is prioritize battery lifetime. Meanwhile, 34% of non-EV owners in China see improved safety as a primary consideration in buying an electric vehicle.

About the Asahi Kasei Automotive Consumer Survey

This report summarizes key findings of the fifth edition of Asahi Kasei’s annual trend survey regarding car users’ purchasing decisions and preferences related to materials and features for the future of vehicles. Conducted in December 2023 via online interviews, Asahi Kasei asked a total of 4,158 car users across the four automotive core markets: Germany (1,074), USA (1,077), China (1,007), and Japan (1,000).

From its first edition in 2019, the survey has been conducted in cooperation with market research institute SKOPOS from Cologne, Germany.

About Asahi Kasei

The Asahi Kasei Group contributes to life and living for people around the world. Since its founding in 1922 with ammonia and cellulose fiber businesses, Asahi Kasei has consistently grown through the proactive transformation of its business portfolio to meet the evolving needs of every age. With more than 49,000 employees worldwide, the company contributes to a sustainable society by providing solutions to the world's challenges through its three business sectors of Material, Homes, and Health Care. Its Material sector, comprised of Environmental Solutions, Mobility & Industrial, and Life Innovation, includes a wide array of products from battery separators and biodegradable textiles to engineering plastics and sound solutions. For more information, visit https://www.asahi-kasei.com/.

Asahi Kasei is also dedicated to sustainability initiatives and is contributing to reaching a carbon-neutral society by 2050. To learn more, visit https://www.asahi-kasei.com/sustainability/.

Europe Contact:

Asahi Kasei Europe GmbH

Sebastian Schmidt

sebastian.schmidt@asahi-kasei.eu

North America Contact:

Asahi Kasei America Inc.

Christian OKeefe

christian.okeefe@ak-america.com

Source: Asahi Kasei

FAQ

What did Asahi Kasei's latest survey reveal about brand loyalty in the automotive industry?

Asahi Kasei's survey shows that brand loyalty is declining, with over half of car users in Germany and the USA, and 79% in China, willing to switch car brands.

How does Generation Z's car brand loyalty compare to other age groups according to the Asahi Kasei survey?

Generation Z exhibits the lowest brand loyalty among all age groups, indicating a weaker connection to specific car brands.

What are the primary complaints car users have about their current vehicles as per Asahi Kasei's survey?

Common complaints include poor gas mileage, lack of storage space, and excessive driving noise.

Why is the willingness to buy electric vehicles decreasing in the USA according to Asahi Kasei's survey?

The decrease is attributed to the phasing out of governmental subsidies and the high cost of electric vehicles.

What are the major motivators for switching to electric vehicles in different regions based on the Asahi Kasei survey?

In Germany, driving range is the top factor; in the US, it's battery lifetime; and in China, improved safety is a primary consideration.

What technological advancements are needed to increase acceptance of electric vehicles as per the Asahi Kasei survey?

Advancements in battery performance, lifetime, and safety are important for improving EV acceptance.

How has the market share for pure electric vehicles changed in recent years according to Asahi Kasei's survey?

Market shares for pure electric vehicles have been slowly growing, particularly in Western markets and China, thanks to subsidies and technological improvements.

How does China’s car user openness to brand switching compare to other markets in Asahi Kasei's survey?

Car users in China are the most open to switching brands, with 79% indicating they would choose a different manufacturer for their next car.

ASAHI KAISEI CRP UNSP/ADR

OTC:AHKSY

AHKSY Rankings

AHKSY Latest News

AHKSY Stock Data

10.40B
0%
Chemicals
Basic Materials
Link
United States of America
Tokyo