Quality, Price, And Performance Are Chosen Over Car Brands
Deloitte’s latest research reveals that slightly more than half of US consumers (54%) who plan to buy a new vehicle intend to switch brands. This trend is even more pronounced in other global markets, with 76% of consumers in China planning to switch brands for their next purchase. The share of consumers intending to change brands has grown in nearly all key global markets, except India, where brand loyalty remains stronger.
The top factors influencing brand choice for US consumers include product quality (58%), price (53%), and vehicle performance (51%). Additional considerations include vehicle features (48%) and the quality of ownership experience (39%). Interestingly, while the automotive industry does not lead in global advertising spend, 10% of US consumers consider brand advertising an important factor in their purchasing decision. This influence is stronger in markets like India (24%) and China (20%), where brand image also plays a more significant role than in the US.
Domestic brand preference varies across regions, with Japanese consumers showing the highest affinity for domestic manufacturers, while UK consumers are the least loyal to domestic brands. In the US, 47% of respondents indicate that they are indifferent to whether a vehicle is from a domestic or foreign manufacturer, prioritizing quality and performance over origin. Additionally, nearly 40% of US consumers are actively considering a new vehicle purchase, though research suggests that most intenders will take at least a year to finalize their decision.
As brand loyalty declines and switching behavior increases, automakers must focus on differentiating their offerings through quality, pricing, and enhanced ownership experiences. With long purchase cycles, brands have an extended opportunity to influence potential buyers through strategic marketing and engagement.
Key Actionable Takeaways:
Emphasize Product Quality in Messaging – Since product quality is the top factor for consumers, highlight reliability, craftsmanship, and longevity in marketing campaigns.
Leverage Competitive Pricing Strategies – With price being a key decision factor, consider targeted incentives, trade-in offers, and competitive financing options.
Showcase Performance Metrics – Given that vehicle performance (fuel efficiency, battery range) is a top concern, communicate these advantages effectively.
Enhance Brand Advertising Efforts – While only 10% of US consumers cite advertising as a key factor, its influence is much higher in markets like China and India, making strategic ad placements essential.
Invest in Ownership Experience Improvements – Provide excellent after-sales service, warranties, and customer support to build long-term brand affinity.
Personalize Marketing for Domestic vs. Foreign Brand Preferences – Since US consumers are largely indifferent to domestic vs. foreign brands, focus on value rather than origin.
Strengthen Digital and Content Marketing – With long purchase cycles, use content marketing, email campaigns, and social media engagement to nurture leads over time.
Leverage Data for Retargeting and CRM – Track consumer intent and behavior to re-engage potential buyers throughout their extended decision-making process.
Offer Test Drive and Experiential Marketing Opportunities – With consumers increasingly open to switching brands, firsthand driving experiences can be a key conversion tool.
Adapt Strategies for Global Markets – Since brand loyalty varies by region, customize messaging and advertising investments based on consumer behavior in specific countries.
