Brand loyalty and buying behavior of car users Wavering Brand Loyalty Poses Challenges for Global Car Manufacturers 

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The latest global car user survey by Asahi Kasei uncovers trends in brand loyalty and purchasing patterns in the automotive markets of Germany, the United States, China, and Japan. Additionally, it examines technological factors contributing to consumer hesitance in adopting electric vehicles, providing a comprehensive understanding of current market dynamics.

The newest global car user survey by Asahi Kasei uncovers trends in brand loyalty and purchasing patterns in the automotive markets of Germany, the United States, China, and Japan. Additionally, it examines technological factors contributing to consumer hesitance in adopting electric vehicles, providing a comprehensive understanding of current market dynamics.

In its fifth annual survey, Japanese technology company Asahi Kasei queried car users in the four major automotive markets—Germany, the United States, China, and Japan—about brand loyalty and key motivators for buying electric vehicles (EVs).The latest survey results confirm the ongoing trend: with intensifying competition, new manufacturers, and evolving customer needs, brand loyalty is waning globally. 
Over half of the respondents in Germany and the USA plan to switch car brands for their next purchase. Chinese consumers are particularly open to brand changes, with 79% indicating a preference for models from different manufacturers. Among various age groups, Generation Z (born between 1995 and 2010) displayed the lowest brand loyalty, suggesting that younger car users feel less attachment to specific brands.To rekindle brand loyalty, car manufacturers and suppliers must understand consumer needs and differentiate themselves amidst increasing competition. Respondents in all four regions cited “poor gas mileage/fuel consumption,” “not enough storage space,” and “too much noise while driving” as the most annoying aspects of their current vehicles. 

These issues also influenced brand-switching decisions, with a third of respondents in Germany and the US prioritizing “quality aspects.” “Running costs” were significant motivators in all markets, while in China, the desire to try new brands, especially premium ones, drove many consumers to switch. This trend highlights the growing influence of premium brands in China, as established manufacturers enhance their brand image, contrasting with volume manufacturers losing market share.Since the inaugural survey in 2020, fuel/power efficiency and running costs have remained the most influential factors in the car-buying process. 

These considerations have consistently impacted purchasing decisions across all surveys.By addressing these critical factors and understanding evolving consumer preferences, automotive manufacturers can better navigate the shifting landscape and enhance brand loyalty in a competitive market.

Enhancing battery performance key for convincing potential EV buyers

Stimulated by governmental subsidies, technological improvements, and an expanding network of charging stations, the market share of pure electric vehicles (EVs) has been gradually increasing, particularly in Western markets and China. Notably, 69% of respondents in China indicated that it is "likely" or "very likely" their next car will have a pure electric drive.

Despite these advancements, the overall willingness to purchase an electric vehicle has not significantly shifted since 2020. In China and Germany, this willingness increased by 6 and 8 percentage points respectively. However, the US saw a 14 percentage point decline, largely due to the phase-out of governmental subsidies and the high costs associated with EVs by the end of 2023.These findings suggest that further technological advancements are essential to convince more car users to switch to EVs. 

Beyond cost considerations, improvements in battery performance, lifespan, and safety are crucial for broader acceptance of electric vehicles across all major regions. The motivations for switching to an EV vary by region: German car users prioritize driving range, with 34% of US respondents focusing on battery lifespan, while 34% of non-EV owners in China consider improved safety a primary factor in their decision to buy an electric vehicle.As the industry continues to evolve, addressing these regional preferences and advancing technology will be key to accelerating the adoption of electric vehicles globally. (kib)