After the ‘diesel scandal’ that broke out 8 years ago, electric cars, which manufacturers started to turn to, are starting to take the place of internal combustion engines as they are more environmentally friendly by creating zero emissions.
However, research shows that behind consumers’ electric vehicle choices, there are more costs than environmental aspects.
So much so that the interest in electric vehicles is increasing as consumers try to reduce their driving costs. However, this raises a number of issues such as the time required for charging on the road, range concerns, infrastructure and accessibility of public charging stations.
According to the ‘2023 Global Automotive Consumer Research’ prepared by Deloitte, 54 percent of the consumers who participated in the research in Turkey state that their next vehicle choice will be gasoline/diesel.
1006 people from Turkey participated in the survey conducted with more than 26 thousand consumers from 24 countries.
According to the research, the percentage of Turkish consumers who responded to hybrid electric vehicle was 30 percent, 10 percent said that electric vehicle was fully battery powered, and the ratio of those who said hybrid electric vehicle was 4 percent.
The biggest concern of consumers in Turkey regarding electric vehicles is the time required for charging, with 47 percent. Driving range and lack of public electric vehicle charging infrastructure follow with 42 percent.
WE ARE AHEAD OF THE WORLD IN THE TREND OF PUBLIC STATIONS
Contrary to the global market, two-thirds of consumers in Turkey, who are considering buying electric vehicles, plan to charge their vehicles at public charging stations. The reason for this trend is the lack of knowledge/opportunity to install a charging station in their homes (30 percent) and high installation costs (30 percent).
Contrary to the other countries where the research was conducted, the cost factor is not at the top, but lower fuel costs are the first reason for choosing electric vehicles in Turkey as in the world.
‘Better driving experience’, ‘less maintenance needs’, ‘government incentives’, ‘extra taxes on internal combustion vehicles’ are listed as other reasons.
The concern of climate change is not even one of the top five motivations of the consumer who will prefer the electric vehicle as the next vehicle.
This situation, which emerged in the research, brings to mind the ‘totally emotional’ line in an advertisement that emphasized the importance of money years ago.
THE TRADITIONAL STATION IS MORE PREFERRED
The increase in electric vehicle demand is also transforming stations. Consumers prefer traditional fuel stations with charging units as well as services such as easily purchased drinks, Wi-Fi connectivity, snacks and toilets.
Nearly two-thirds of consumers surveyed say they can wait between 10 and 40 minutes at a public charging station for their vehicle to charge up to 80 percent from empty. This challenges the traditional notion that the possibility of creating an experience equivalent to a fossil fuel experience is ‘limited’.
Almost 5 out of 10 people who want to buy electric vehicles in Turkey expect to pay more than 500 thousand liras for their next vehicle due to the constant upward pressure on vehicle prices.
IT IS NORMAL TO WAIT UP TO 12 WEEKS FOR A NEW VEHICLE
The current inventory crisis is potentially opening the door to a new ‘make-to-order’ paradigm by accustoming consumers to waiting longer for new vehicle deliveries, according to the study. 48 percent of consumers in Turkey agree to wait 3 to 12 weeks for their next vehicle to be delivered.
Automotive brands (OEMs) evaluate many potential profit pools going forward, including bringing insurance products in-house, which marks a significant break for the traditional value chain, while 77 percent of consumers in Turkey are interested in purchasing insurance directly from the vehicle manufacturer. More than 5 out of 10 consumers in this segment expect a smooth purchasing journey and convenience from brands.
Consumer confidence is concentrated in sales or service dealers, pointing to the importance of retail touchpoints in customer relations. While 62 percent of consumers in Turkey trust the dealer where they took their vehicle to service or bought it, only 32 percent trust the manufacturer/brand of the vehicle they own.
THE DISTANCE TO THE SUBSCRIPTION MODEL IS TOO
One of the prominent topics in the research is about personal data. Accordingly, 42 percent of Turkish consumers, who are more inclined to share their personal data than the global average, trust automotive brands and vehicle dealers the most to manage the data produced by their vehicles.
More than half (53 percent) of consumers surveyed in Turkey prefer not to pay separately for connected technologies, but to pay upfront in the purchase price of the vehicle. This poses a significant challenge for automotive brands that aim to generate new revenue streams in the form of monthly subscriptions.
‘COST DEFINES PREFERENCES’
Evaluating the results of the research, Deloitte Turkey Automotive Industry Leader Özlem Yanmaz said that the industry continues to face successive shocks in the global market in the recent period.
Emphasizing that this year’s report reveals consumers’ interest in adopting electric vehicles, their tendency to purchase vehicles, their concerns and preferences, Yanmaz said, “Despite the difficulties of the past few years, the automotive industry continues to adapt and move forward. Although rising prices are a significant challenge for consumers, they continue to reduce fuel costs. The strong desire for electric vehicles increases the tendency to buy electric vehicles not only in Turkey but also in the world.
Noting that industry players want to take advantage of the transition to electric vehicles to unlock new revenue streams with value-added services that improve the mobility experience, Yanmaz said, “Even though this transformation seems product-oriented, consumers prioritize cost, trust and product quality. experience and the expectation of increasing multi-channel convenience. The only constant of these revolutions triggered by technology, people will always remain in the focus of the industry,” he said.