CONSUMER TRENDS

2025 Consumer Preferences

Published: March 2025

Consumer surveys indicate 68% of new vehicle buyers prioritize connectivity features, while 45% consider EV options. Subscription models are gaining traction, with 15% of buyers exploring alternatives to ownership, reflecting fundamental shifts in how consumers view and use vehicles.

Connectivity as a Priority

Connectivity features have become a primary consideration for vehicle buyers, with 68% of new vehicle buyers prioritizing these capabilities. This shift reflects the increasing importance of digital experiences in consumers' lives and expectations that vehicles provide seamless integration with their digital ecosystems.

Consumers expect vehicles to offer features including smartphone integration, over-the-air updates, advanced infotainment systems, and connected services. These features are no longer considered luxury add-ons but essential components of the vehicle experience.

Electric Vehicle Consideration

Electric vehicle consideration has increased significantly, with 45% of new vehicle buyers actively considering EV options. This represents a substantial increase from previous years and reflects growing awareness, improved technology, expanding model availability, and increasing charging infrastructure.

Consumer Insight:

While consideration is high, actual purchase rates remain lower, indicating that barriers including price, charging concerns, and range anxiety still influence decisions. However, as these barriers are addressed, conversion from consideration to purchase is expected to increase.

Subscription Model Interest

Subscription models are gaining traction, with 15% of buyers exploring alternatives to ownership. This interest is highest among younger consumers, urban dwellers, and those who value flexibility over ownership. The model appeals to consumers who want access to vehicles without the long-term commitment and responsibilities of ownership.

Subscription services offer benefits including flexibility, access to multiple vehicles, included maintenance and insurance, and the ability to upgrade or change vehicles easily. These benefits are particularly attractive to consumers with changing needs or those who want to experience different vehicle types.

Demographic Variations

Consumer preferences vary significantly by demographic. Younger consumers prioritize technology and connectivity, while older consumers focus on reliability and safety. Urban consumers show stronger interest in EVs and subscription models, while rural consumers prioritize range and utility.

Income levels also influence preferences, with higher-income consumers more likely to consider premium features, EVs, and subscription services. However, as technology costs decrease and models become more affordable, these preferences are expanding across income segments.

Value Drivers

Consumers are increasingly value-conscious, seeking vehicles that offer the best combination of features, quality, and price. This value orientation is driving demand for vehicles that provide advanced features at competitive prices, challenging manufacturers to deliver more for less.

Quality and reliability remain important, but consumers also value innovation, technology, and environmental responsibility. The combination of these factors creates complex decision-making processes that manufacturers must understand and address.

Brand and Model Preferences

Brand loyalty is evolving, with consumers more willing to consider new brands, particularly in the EV segment. Established brands maintain advantages in trust and reputation, but new entrants are gaining consideration through innovation and compelling value propositions.

Model preferences are diversifying, with consumers seeking vehicles that match their specific needs and lifestyles. This trend is driving manufacturers to expand model lineups and offer more customization options.

Future Preference Trends

Looking ahead, we expect continued evolution of consumer preferences, with increasing emphasis on sustainability, technology, and flexibility. These trends will shape product development, marketing strategies, and business models as manufacturers adapt to changing consumer expectations.

The convergence of connectivity, electrification, and new ownership models will create new consumer segments and preferences. Understanding and responding to these evolving preferences will be critical for success in the changing automotive market.

Conclusion

Consumer preferences are evolving rapidly, with connectivity, electrification, and new ownership models gaining importance. With 68% prioritizing connectivity, 45% considering EVs, and 15% exploring subscription models, the automotive market is experiencing fundamental shifts that will shape product development and business strategies for years to come.