COVID-19 is accelerating trends in the automotive industry that were already underway but had not yet been widely adopted. To help auto marketers prepare for what’s ahead, ThinkWithGoogle identified five key trends to keep in mind.
Automotive brands looking to position themselves for recovery will need to adapt to faster industry cycles and shorter planning horizons. They’ll also need to prioritize initiatives that are best aligned with where the industry is headed, such as operationalizing home delivery or further digitizing the automotive purchase process.
1. People are finding comfort in car ownership
A study from Ipsos in early March shows that, in China, people’s attitudes toward vehicle ownership, public transportation, and mobility solutions like ride hailing have shifted in the wake of the pandemic. Usage of personal or private cars nearly doubled after the outbreak, while reliance on public transportation has fallen by more than half, with taxis and ride hailing each seeing significant declines in usage.
With commuters in the U.S. relying less on public transportation and ride-sharing services, 93% of people said they are using personal vehicles more. But among people surveyed in China who do not own a car, most responded that they intend to purchase a vehicle for health and safety reasons. And we are seeing this shift play out in the U.S. A recent Cars.com survey reported that 20% of respondents who didn’t own their own car were considering purchasing one.
2. People expect to find car deals
For example, Hyundai had the No. 1 ad for the week of March 30, 2020, with a context-appropriate spot about Hyundai Assurance, a program that covers payments for up to six months if a buyer loses their job this year due to COVID-19. Price is always an influential factor for auto purchasers, so it’s no surprise that current deals offered by automakers are heightening people’s interest in what’s out there. Search volume for best car deals and truck deals has grown 70% globally from March 22, 2020, to March 28, 2020, versus March 15 to March 21 of the same year.
3. People want the dealer experience closer to home
Auto shoppers ranked the following activities by preference as good alternatives to a dealer visit:
- At-home test drive
- Review videos
- Digital showroom
- Online configurator
- VR test drive
- Videoconference
Before the pandemic, auto shoppers were turning to YouTube to experience digital test drives. The importance of that trend is even greater given current shelter-in-place policies.
4. People want online car buying and at-home delivery
While dealers before COVID-19 have been able to offer vehicle delivery, only a very small number have the online capabilities to execute a full vehicle sale online. Additionally, while the purchase journey itself is happening online, the purchase still happens offline. At-home test drives and vehicle delivery were tied as the number 1 alternative to visiting a car dealership for auto shoppers.
5. People are tuning in to digital events
The pandemic has changed business as we knew it. And while we can’t predict the future, these shifts in consumer behavior are likely to persist. As automakers shift to moving metal again, understanding customer expectations, as well as the new ways people shop and buy, will be critical to success.
Source: https://www.thinkwithgoogle.com/consumer-insights/auto-industry-impact-during-coronavirus/