Increasing Consumer Confidence for Self-Driving Vehicles (OtoLife, Swakemudi)

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Teknikimobil.com – A report from autonomousvehicletech shows that there has been an increase in consumer confidence in autonomous vehicles recently. As we report on their website, it is starting to become mainstream in every society that knows the technology brought by autonomous vehicles. What does this increase look like?

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Consumers have a brighter view of the safety of autonomous vehicles, although concerns remain. Significantly fewer people in 2018 felt that autonomous cars would be unsafe, with less than half (47%) of US consumers holding this view – a dramatic drop from 2017, when 74% felt autonomous vehicles would be unsafe.

This view is consistent with other countries covered in the study, including: South Korea (54% this year vs. 81% last year), Germany (45% vs. 72%), and France (37% vs. 65%) who feel driverless cars might be unsafe The most notable change came from China, where the percentage of people who thought autonomous cars would be unsafe fell from 62% in 2017 to just 26% in this year’s study. This may be due to the arrival of the Tesla company which is building one of its factories in that country .

“Overall acceptance of autonomous technology has grown rapidly in a short period of time,” said Craig Giffi, Vice Chairman, Deloitte LLP, and US automotive leader “However, self-driving cars are still in the experimental phase, and the industry is at the front end of an investment cycle the extensive capital required to bring autonomous vehicle technology to the mainstream market. To complicate the cycle, automakers are realizing the immediate need to invest. Areas include electric powertrains, lightweight materials, advanced connectivity and mobility. Although the results are far off, it is important for automakers to continue to allocate resources to autonomous driving technology. Those who choose a reactive mindset rather than preparing for the long haul. the term will be at greater risk as consumer acceptance for autonomous technology increases. ”

Many people agree they would trust an autonomous vehicle with a proven track record of safety. Nearly three-quarters (71%) of US respondents said they would be more likely to take an autonomous vehicle if they had an established safety record, up slightly from 68% in the 2017 study. Other markets appear to be on the rise, however, with 83% of South Korean consumers ( up from 70% in 2017), and 63% of German consumers (up from 47% in 2017) hold the same view.

Taking it a step further, more consumers are turning to trusted brands for reassurance around the safety of autonomous technology. Nearly two-thirds of US consumers (63%) report that they would be more likely to ride in an autonomous vehicle if it came from a brand they trust, compared to 54% in 2017. Consumer confidence in brands appears to be strengthened by younger consumers. , as 70% of the Gen Y/Z population reported that they would be more likely to accept a self-drive vehicle from a trusted brand, compared to 62% of Gen X consumers and 56% of Boomer/Pre-Boomer consumers. “The automotive industry’s battle between brands for consumer trust continues in new and heightened ways,” said Giffi.

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In most areas, consumers favor traditional automakers to bring fully autonomous vehicles to market. In the US, nearly half of consumers (47%) would put their trust in traditional automakers, compared with about a quarter each who trust technology companies (25%) or new-to-market autonomous vehicle makers (28%). Consumers in Asia have a different view: In Japan, 76% trust traditional automakers to bring technology to market, compared with 28% in China and 13% of consumers in Southeast Asia including Indonesia .

Not completely trusting the industry, many consumers will put their trust in federal regulations, as Indonesia will do as well. More than half of US consumers (54%) report that they would feel better about driving a self-driving car if the government implemented standards and regulations.

While consumers appear more inclined to embrace new technology in the form of autonomous vehicles, many are ditching new powertrain options in favor of traditional engines. Most US consumers (80%) still prefer gasoline or diesel engines, up slightly from 76% in 2017, and only 15% say they would choose a hybrid engine in their next vehicle.

International consumers are showing an increasing preference for alternative powertrains. More than a third (38%) of Japanese consumers and 36% of Italian consumers prefer a hybrid engine in their next vehicle, and 40% of Chinese consumers hold the same view.

“The economics of electric vehicles compared to traditional powertrains are currently not favorable enough for either consumers or automotive companies,” said Joe Vitale, Global Automotive Leader, Deloitte Touche Tohmatsu Limited. “However, two important trends could move us closer to the tipping point: reducing battery costs and government regulation. The trend towards mandating electric lubricant loads – not just demanding increased fuel efficiency or a better carbon footprint, especially in Europe and China – spells out a ‘must do’ for global automakers. Additionally, as automakers simultaneously begin to widely partner to build EV charging infrastructure and develop other value-added services that increase the convenience factor for consumers, electric vehicles could become a desirable alternative for a large portion of consumers. consumer. ”

Deloitte research also found that consumers are unwilling to pay more for autonomous vehicles. Deloitte’s latest consumer survey data on this topic found that in countries such as Germany (50%), US (38%) and Japanese (31%) consumers are unwilling to pay extra money for these vehicles. The findings are similar for electric vehicles, where 42% of German consumers and more than a third of people in Japan and the US say they are unwilling to incur the additional costs of getting alternative powertrain technology.

Giffi notes, however, “As exciting as autonomous vehicle technology is, and despite the current high interest and acceptance of autonomous technology compared to electric vehicles in the minds of consumers, government regulations will likely force investment in electric vehicle technology. At the same time, consumers around the world have been consistent in saying they don’t want to pay additional costs for electric or autonomous vehicles, leaving automakers with some tough capital allocation and business model decisions if they expect to make any money at all. ”

The Deloitte study shows that automakers developing and bringing to market advanced vehicle technologies, such as autonomous vehicles, must simultaneously create new business models that can maintain an appropriate return on investment. Finally, considering the more than 1 billion conventional vehicles on the roads worldwide today, and the tens of millions that continue to be sold each year, that is expected to last more than a decade, a transformation to greater adoption of autonomous driving. and electric powertrains will take a long time to reach tipping point. Automakers must balance continued innovation and new business models with the need to sell, serve and satisfy today’s consumers with better technology for which they will be most willing to pay in the near future, such as safety.[]