McKinsey reports reveal shifts in consumer preferences for choice of automotives, which creates new opportunities for Asia. Photo Credit: gettyimages/Fritz Jorgensen
The automotive sector is bouncing back from the impact of Covid. A
report released last year from McKinsey revealed that automotive sales
plunged 71 percent in China in February 2020. Two years on, McKinsey
reported that from the third quarter of 2020 through to the first
quarter of 2021, automotive manufacturers around the world have seen
rapid, and in some cases, record levels of production.
A 2021 Global Automotive Consumer Study, produced by Deloitte and
which focuses on Southeast Asia, looked at data from Indonesia,
Malaysia, the Philippines, Singapore, Thailand and Vietnam. It noted
changes to mobility patterns as a result of the pandemic, with the
preference to commute by personal vehicles having increased as a result
of the pandemic.
Southeast Asian consumers however, are rethinking the type of vehicle
they will buy next and their need for credit protection. About half or
more of consumers across all Southeast Asian markets intend to acquire a
less expensive vehicle than originally planned.
A further McKinsey report, released in October and titled ‘Asia’s
consumers on the move: The future of mobility’, assesses how economic
growth and shifting consumer values are transforming the opportunities
in Asia for players in the automotive industry.
It points to how consumers may adopt new behaviours such as
considering new forms of ownership, increasing eco-consciousness, and
changing brand preferences, and outlines how players in the automotive
sector have opportunities to capitalise on these trends to create more
value for consumers.
These opportunities may include increased accessibility through
shared mobility, improved environmental quality or more choice of
vehicles with different ecological footprints as electric vehicles (EVs)
become mainstream.
What's on the events calendar?
On the event
front, Future Mobility Asia is taking place in Bangkok from 20-22 July,
and showcases passenger and commercial vehicle launches, new
technologies, product and innovation announcements.
Automotive World China is taking place at the Shenzhen World Expo
Exhibition & Convention Centre from October 12-14 and expects to
attract more than 500 exhibitors and brands from China and abroad. It
features a range of topics, including autonomous driving and the
internet of vehicles.