Cars :The Deloitte 2025 Global Automotive Consumer study: Consumer interest in electric cars continues to decline

Consumer interest in electric cars continues to decline in the world’s largest markets, in favour of the internal combustion engines, that are gaining ground in consumer preferences in Germany (53%, up from 49% in 2024), Japan (41%, up from 34% in 2024), India (54%, up from 49%) or China (38%, up from 33%), except in the USA where, however, classical engines hold a high share in consumer options (62% vs. 67% in 2024), according to the Deloitte 2025 Global Automotive Consumer Study. On the other hand, regardless of engine type, price and product quality remain the main criteria in choosing the brand of the next car for consumers in Germany (62%) and the United Kingdom (62%), and respectively in the USA (58%), the United Kingdom (62%) and South-East Asia (65%), while vehicle performance ranks first in South Korea (59%).   Those who still plan to buy an electric car are motivated by environmental concerns, in India (63%), and Germany (54%), and by the lower fuel costs, in South-Est Asia (64%), Japan (61%) and the United Kingdom (59%). On the other hand, the government incentive programs are among top three arguments in favour of purchasing an electric car only in Germany (33% of consumers).   ”The declining interest in electric vehicles represents an additional challenge for automotive players, especially for those in the European Union, which, on top of the growing global competition, are facing regulatory pressure to reduce CO2 emissions. The lower demand for electric cars is also confirmed by the European Automotive Manufacturers Association, which indicates that EU sales registered a 5.9% decrease in 2024 compared to the previous year. In these circumstances, the European automotive industry needs more flexibility in the transition to green vehicles and climate requirements adapted to market conditions, and European authorities are already taking steps in this direction. At the same time, the largest automotive manufacturers are calling for a reshape of the programmes to stimulate the electric cars production, given that in recent years several European states, including Romania, have restricted or even eliminated the subsidies granted for the purchase of such vehicles,” said Bogdan Barbu, Tax Partner, and Automotive Industry Leader, Deloitte Romania.   According to the study, the share of consumers who intend to switch to another brand of vehicle at their next purchase is increasing – to 76% in China (up from 73% in 2024), 71% in South-Est Asia, 51% in the United Kingdom or 46% in Germany, which indicates an increasing competitive landscape across the market. In addition, loyalty for domestic brands is declining. Except for those in Japan (76% are loyal to domestic producers), consumers consider the country of provenience is not important as long as the vehicle meets their needs – the United Kingdom (68%), China (52%), Germany (50%), and the USA (47%).   Regarding battery-electric cars, participants in the study are generally concerned about range (Germany – 54%, the United Kingdom – 52%), price (Germany – 45%, the United Kingdom – 49%), charging time (Japan – 49%, the United Kingdom – 47%), public charging infrastructure (Germany – 43%), and battery safety (South Korea – 49%).   Another concern in this case is related to the batteries recycling and the entity responsible for it. While consumers in Japan and South Korea consider that car manufacturers should be responsible to manage the batteries for the entire life-cycle (35%, and 31% respectively), Germans put the battery manufacturer first (21%), and consumers in China (26%), South-Est Asia (25%), and the United Kingdom (19%) believe there should be a dedicated entity in charge of recycling.   The Deloitte 2025 Global Automotive Consumer study was conducted among approximately 31,000 consumers in 30 countries, including 13 European states – Austria, Belgium, the Czech Republic, France, Germany, Hungary, Italy, Netherlands, Poland, Spain, Sweden, Turkey and the United Kingdom.