Deloitte’s ‘2025 Global Automotive Consumer Study’ provides key insights into hybrid vehicle interest, declining brand loyalty, and the influence of emerging technologies on U.S. automotive consumer behavior.
Growing Interest in Hybrid Vehicles
Consumer interest in hybrid vehicles in the U.S. has increased by 5%, now accounting for 26% of potential buyers, while interest in internal combustion engine (ICE) vehicles has declined by 5% to 62%. Interest in battery electric vehicles (BEVs) remains low at just 5%, presenting challenges for automakers.
Consumers are prioritizing cost savings (56%), environmental benefits (44%), and driving experience (36%) when considering EVs. However, barriers such as battery range (49%), charging time (46%), and high costs (44%) remain significant.
Despite the growing interest in electrification, public charging infrastructure concerns may be overstated. The study found that most U.S. EV buyers (79%) plan to charge their vehicles at home, though 58% lack access to dedicated chargers. Additionally, 35% of consumers drive over 60 miles only once or twice a month, further indicating the practicality of hybrid options.
Declining Brand Loyalty
Brand loyalty continues to decline globally, with many consumers planning to switch brands for their next vehicle. In the U.S., nearly half of consumers previously owned the same brand as their current vehicle. However, only 47% now prioritize brand loyalty, focusing more on quality (58%), price (53%), and performance (51%).
Japan exhibits strong loyalty to domestic brands (76%), while markets like China (76%) and India (72%) show high defection rates as consumers increasingly explore new options.
Evolving Technology Expectations
Technological advancements, including autonomous vehicles and mobility-as-a-service (MaaS), are reshaping consumer expectations. However, safety concerns remain a barrier, particularly in the U.S., where 52% of respondents expressed hesitation about driverless robotaxi services.
While AI integration in vehicles is viewed positively by 82% of Indian and 77% of Chinese consumers, only 45% of U.S. respondents share the same sentiment. Smartphone connectivity remains a priority, with 63% of U.S. consumers and 87% of Indian consumers valuing this feature.
Industry Leadership Insights
Deloitte’s study underscores the importance of hybrid vehicles as a practical bridge between traditional and alternative powertrains. Jody Stidham, managing director of global automotive at Deloitte Consulting LLP, emphasized that interest in hybrids and range extender technologies reflects a growing consumer desire for cost-effective, low-emission solutions that do not rely on a robust charging infrastructure.
Lisa Walker, vice chair and U.S. automotive sector leader at Deloitte highlighted that rising hybrid adoption offers a pragmatic alternative for U.S. consumers amid ongoing infrastructure and cost challenges. She also noted that while autonomous vehicle technology is regaining attention, safety concerns remain a key hurdle to its success.
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