Consumer attitudes toward electric vehicles are changing fast—and so are expectations of the car-purchasing experience.
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GLOWhen individuals purchase an electric vehicle, they desire an experience that aligns with their perceptions of the car itself. This entails a blend of excitement and innovation, coupled with dependability and predictability. They anticipate the ability to conduct transactions online while also engaging in negotiations with a physical representative, and they still consider test driving essential. Nonetheless, the overall journey must be smoother, more tailored, and more adaptable than in the past, when traditional dealership walkarounds were the norm.
These insights stem from McKinsey’s recent consumer survey on the Future of Auto Retail, which gathered responses from over 4,000 participants worldwide. The survey focused on gauging consumer attitudes toward electrification, the process of buying cars, and advancements in automotive retail. The results reveal that consumers hold high expectations for their purchasing experience, although they are uncertain about the industry’s readiness to fulfill these expectations.
This article illustrates how the rising demand for electric vehicles is shaping the course of automotive retail. While consumers appreciate digital interactions, they harbor concerns about issues such as unclear pricing and intricacies in the process.
Key takeaways:
- More consumers than ever are considering buying an EV (Exhibit 1). According to the McKinsey Mobility Consumer Pulse Survey, the proportion of consumers considering battery-electric vehicles (BEVs) rose by five percentage points to 20 percent between December 2021 and December 2022;
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Increasing comfort with online buying – In a world dominated by digital engagement, consumers’ first instinct when considering a car purchase is to go online. One in three buyers say they will not only research but also buy online for their next car purchase, citing simplicity and speed as key drivers. In China, more than half of respondents say that they would buy a vehicle online, regardless of power train choice. In other geographies, online purchasing is more favored among EV buyers, with twice as many choosing online over physical transactions;
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Brand loyalty put to the test – In times of systemic change, consumers are more willing to abandon long-standing loyalties. This presents a test for established brands (Exhibit 2). More than 50 percent of respondents say they may try a new brand when they switch to electric. And if only BEVs are considered, the proportion rises to 70 percent.
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Consumers are not wowed by the purchasing experience – Of consumers who bought a car in the past three years, only 53 percent say they were very satisfied with the experience. Top pain points included price transparency, vehicle availability, and process complexity (Exhibit 3)
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Source: McKinsey & Company
