Capgemini’s Cars Online 11/12 study explores these topics – and more – and considers the impact they will have on the automotive industry. The study involves over 8,000 consumers in eight countries (Brazil, China, France, Germany, India, Russia, UK and US).

1. Automotive the way we see it
Cars Online 11/12
Changing Dynamics Drive New Developments in
Technology and Business Models

2. Contents
Introduction 3
Executive Summary 4
Developing Markets: Localization Remains Key to Growth 6
Shopping Behavior: ‘No More Tire Kickers’ 9
The Role of the Web: Internet Usage Expands Into New Areas 14
Online Buying: Latent Demand Strengthens 17
Green Vehicles: Spotlight Shines on Electric Cars 21
Customer Interaction: There’s an App for That 24
Aftersales: Servicing Grows as a Factor in Vehicle Decisions 29
Conclusion and Recommendations 32
© 2011 Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written permission from Capgemini.

3. Automotive the way we see it
Introduction
“ The sellers should not
focus only on the technical
aspects of the car and
Uncertainty and change are among the
dominant sentiments characterizing
the automotive industry today.
Vehicle sales in many markets have
maintain their loyalty through the
vehicle lifecycle.
As the vehicle buying process evolves,
the engines; instead they fluctuated up and down over the past it is important to recognize that
year, reflecting the unstable economic selling vehicles is as much about
should also be interested environment, volatile fuel prices and the car buyers as it is about the cars
in the drivers and their the residual impact of the earthquake themselves. Noted one consumer
hopes and needs that in Japan. from France: “The sellers should not
focus only on the technical aspects of the
aren’t just about the Similar uncertainty is evident in this car and the engines; instead they should
mechanical aspects year’s Cars Online study. Positive signs also be interested in the drivers and their
”
of the car. include an increase in the number hopes and needs that aren’t just about the
of new – compared with used – car mechanical aspects of the car.”
French consumer buyers in mature markets and an
increase in overall satisfaction with Vehicle buyers lie at the heart of our
the vehicle buying process. On the Cars Online research. This year’s report
downside, however, brand and is based on research conducted with
dealer loyalty declined slightly and more than 8,000 in-market consumers
many consumers indicated they were in the mature markets of France,
postponing buying a car until the Germany, United Kingdom and the
economy shows more signs of stability. United States, and the developing
Those consumers who are in the markets of Brazil, China, India and
market are interested in innovative Russia. The study includes both
technology and ownership models, quantitative and qualitative consumer
including online buying, alternative- views on topics ranging from the
fuel vehicles, smartphone applications shrinking vehicle buying cycle and
and mobility solutions like vehicle electric vehicles; to mobility programs
sharing. and expanded use of the web.
Understanding these rapidly We are confident that the findings
evolving dynamics is essential to of Cars Online 11/12 will provide
success for automotive companies. automotive companies with insights
Cars Online 11/12 – Capgemini’s 13th into the changing dynamics of vehicle
annual global automotive study – buying behavior. And we believe those
provides an in-depth look at these insights can be particularly valuable in
trends. The study offers insight into helping to guide business decisions in
how consumers in both mature a time of uncertainty and change.
and developing markets shop for
vehicles, factors that influence their
buying decisions, the growing role
of aftersales/servicing and how to
Cars Online 11/12 3

4. Executive Summary
Capgemini’s Cars Online research 71% said they would be likely to important factor in selecting a vehicle
examines key topics impacting purchase a vehicle from a particular this year (tied with interior/exterior
the industry, including trends in car manufacturer or dealer if they styling and fuel economy), up from
developing markets, consumer found positive comments posted seventh position the prior year.
shopping behavior, the role of the web on social media sites; and 51% said In addition, servicing dealers can
and social media, online buying, green they would be less likely to buy a influence future buying decisions.
vehicles, customer interaction and vehicle from a particular manufacturer More than half of respondents said
aftersales servicing. Understanding the or dealer if they found negative they were likely to buy their next
shifting dynamics in these areas can comments. Both findings point to the vehicle from the same dealer they
help automotive companies respond increasing importance of managing, currently use for servicing.
faster and more effectively to changing monitoring and analyzing social media
consumer needs and demands. content. The growing emphasis on servicing
is also reflected in the fact that
A number of key findings emerged
from this year’s study: 3 Smartphone applications
represent an emerging channel
for customer interaction. Consumers
service reminders are cited as
the most useful/valuable form of
post-sale communication and are
1 The use of the Internet during
the vehicle buying process
and ownership lifecycle continues
indicated strong interest in mobile/
smartphone applications for their
vehicle, particularly post-sale. Apps
among the most useful mobile
apps listed by respondents. In fact,
the Internet is becoming a more
to expand into new areas. Web considered most useful by consumers common tool for service support,
usage for researching vehicles edged include remote support features including appointment scheduling,
upwards this year, reaching 94% such as remote locking/unlocking car replacement booking, work order
overall, driven in part by increased of vehicle doors (named by 68% approval, work order confirmation,
use in developing markets. More of respondents) and a parked car post-service surveys and access to a
importantly, use of the Internet locator using GPS (64%); vehicle vehicle’s history. These developments
has expanded into areas such as: information such as a vehicle make it clear that aftersales service
online buying of vehicles, parts and owner’s manual with easy navigation needs to be a key part of an
accessories; growing reliance on social (63%); driving support features automotive company’s sales plan.
media and user-generated content like vehicle health information/
as a source for vehicle and dealer
information; and mobile web growth
during the buying cycle and post-sale
status of vehicle operations (64%)
and diagnostic trouble codes (63%);
care information like service
5 Increasing consumer demand
for alternative buying
models reflects a growing shift
as consumers look for vehicle-related reminders (67%) and manufacturer from products to services; from
smartphone applications. vehicle notifications (63%); and traditional vehicle ownership to
communications such as roadside “power by the hour.” Nearly 40%
2 Social media becomes more
influential in vehicle buying
decisions. Consumers, particularly in
assistance with an easy-to-navigate
single click (67%). Consumers are
also interested in using smartphone
of respondents would consider a
vehicle-sharing or ride-share program
as an alternative to traditional buying/
developing markets, are increasingly apps during the buying cycle for leasing of a vehicle, and almost half
relying on social media during the scheduling a test drive and vehicle would look at a mobility package
research process. Among the tools they configuration. (which offers access to a variety of
turn to are dealer and manufacturer vehicles, services and accessories
social media sites, automotive blogs
and discussion groups, personal social
networking sites, social messaging/
4 Aftersales servicing is a growing
factor in consumers’ choice of
vehicle and can be a key to vehicle
that can be used as needed by the
consumer for a fixed price and a
specified time frame, such as “Mu
micro-blogging sites, and video- and sales. Servicing is taking on a bigger by Peugeot”). The interest was
photo-sharing sites. The content that role for many consumers, particularly particularly pronounced among
consumers find on these sites can be in developing markets. Aftersales younger consumers and in developing
influential in their buying decisions: servicing ranked as the fourth most markets. If this trend continues it
4

5. Automotive the way we see it
could represent a significant shift
in the way consumers think about
car buying and ownership and lead
7 Consumers in developing
markets have become more
demanding about both the quality
means that those customers who visit
the showroom are serious, not just
curious. Dealers must capitalize on
the industry to consider alternative and quantity of car dealerships. these visits since one chance may be
business models. Recognizing the As the number of vehicle owners and all they get.
potential impact of this change, some dealerships increases in markets such
car rental companies and vehicle as India, China and Brazil, consumers
manufacturers are testing models such are growing more particular about
as mobility packages. what they expect from a dealer. They
want proximity to their home as they
6 The demand for new – rather
than used – vehicles has edged
upward in mature markets. In a
are unwilling to travel very far to buy a
car. In China, for example, only 23% of
respondents will travel farther than 10
positive sign for the industry, a higher miles to buy a vehicle, compared with
“
number of respondents from the 53% of all consumers. In addition, they
mature countries were in the market demand faster, higher-quality responses The way of selling
for new vehicles this year, especially from dealers and will walk away if their
smaller, more fuel-efficient cars. In
only one brand in
needs are not met.
all four mature markets (France, one shop will be broken
Germany, U.S. and U.K.) the number
of intended new car buyers increased
by several percentage points, while
8 The vehicle buying cycle
continues to shrink, especially
when it comes to showroom visits.
soon and car supermarkets
will appear. This way we
the number of intended used car Increasingly, consumers are waiting can compare more vehicles
”
buyers declined. This may reflect until the final weeks before purchase on the spot.
a return on the investments made to visit dealerships. Forty-three
Chinese consumer
by manufacturers in new product percent of respondents won’t visit
development, especially around a showroom until a month prior
smaller vehicles, alternative fuels, to their purchase, compared with
infotainment and communication 39% the previous year. While this
technology, navigation systems, and reduces the opportunities to interact
safety and quality features. with customers face to face, it also
About Capgemini’s Cars Online Study
Capgemini worked with SmartRevenue, a Ridgefield, Connecticut-based research firm, to
conduct the survey for Cars Online 11/12. All analysis and interpretation of the data was
made by Capgemini in collaboration with the Car Internet Research Program (CIRP) of the
University of Ottawa, Canada. In total, more than 8,000 consumers were surveyed in eight
countries: Brazil, China, France, Germany, India, Russia, United Kingdom and the United
States. Fieldwork was conducted in June and July 2011.
All consumers surveyed were in the market for a vehicle (25% plan to buy or lease a
vehicle within two months; 36% in two to six months; and 39% in seven to 12 months).
The composition of the consumer sample in each country was based on projectable
national samples representative of the in-market vehicle-buying population in terms of
region, age and gender.
Cars Online 11/12 5

6. Developing Markets: Localization
Remains Key to Growth
“Looking ahead
five years, all vehicle
transactions can be made
Much attention has been placed on
developing markets because they
represent a key to current and future
growth for the automotive industry.
Understanding the dynamics of these
markets is essential to success. The
Cars Online research demonstrates
that consumers in developing markets
with the help of mobile or However, significant risk/reward behave quite differently from those in
challenges exist in these markets. mature markets.
smartphones compared
On the reward side, sales potential is
”
with today. high. On the risk side are logistics, Demanding Consumers
Indian consumer infrastructure and bureaucratic Characterize Developing
challenges, as well as cultural Markets
differences, complex tax structures, Car buyers in developing markets
and political and regulatory obstacles. continue to be more demanding
in a number of respects than their
While automotive companies are counterparts in the mature markets.
focused on building their business in For example, they are less willing to
the developing markets, consumers travel to purchase a vehicle. Only
point to a potential downside of the 44% of respondents in developing
rapid growth. Noted a respondent markets will travel more than 10
from China: “Soon it may be more miles, compared with 64% of those in
difficult to buy a car because there will be mature markets. The difference is even
more cars on the road to create heavier more pronounced in China, where just
traffic problems, so there could be more 23% of consumers will travel more
restrictive policies for purchasing a car.” than 10 miles to buy a car.
Consumers in the developing markets
Willingness to Travel to a Dealership (% saying)
also expect especially fast response
100%
times to e-mail and website inquiries.
Sixty-seven percent of respondents
16 22
from China expect a response within
30 29
four hours and 43% would like a
80% More than 20 miles
response within one hour, compared
11-20 miles
28 22 with the all-market average of 51%
5-10 miles
and 28%, respectively. Similarly, 61%
60% Less than 5 miles of consumers in Russia and Brazil
35
35 expect a response within four hours
and about one-third would like a
40% response within one hour.
42 44
Said a consumer from India: “I would
20% 29 28 like to be able to get an immediate
response from a dealer when I make a
14 12
request for information and other details
6 8 about vehicles.”
0%
Mature Mature Developing Developing
Markets Markets Markets Markets
2010 2011 2010 2011 Consumers in developing markets
differ from those in mature markets in
Source: Capgemini a number of additional respects.
6

7. Automotive the way we see it
Required Speed of Response from Manufacturer/Dealer to Consumer Query – Less than 4 Hours (% saying)
80%
71
67 67
62 61 61 61 61
60%
57 56
55
52 2008
51 51 50
49 48 2009
47 46
45
44 43 43
43 43 43 2010
40% 40 41
39
37 2011
34 34
33
31
28 29
20%
0%
All Markets U.S. U.K. France Germany Russia Brazil India China
Source: Capgemini
Type of vehicles: New cars remain However, this is trending downward of respondents said they would
the dominant choice in most of the and is likely the residual effect of consider a vehicle-sharing program;
developing markets, where the used the tax incentives previously given in Brazil the number was 65%; and
car business exists only on a small to Brazilian consumers for buying in India, 52%. In comparison, 37%
scale (with the exception of Russia). cars online. In India, consumers can of consumers overall were interested
In addition, the distribution of vehicle now buy vehicles from the website of in vehicle sharing. As with online
types spans a narrower spectrum their financial services provider. With buying, the traditional approach to
in the developing markets, where this model, they may get preferential buying a car is not entrenched in the
fewer classes of vehicles are available. rates as well as a less cumbersome developing markets as it is in mature
However, this is gradually changing as loan application process as the bank regions and so consumers are more
new models are being introduced in already has the necessary data to willing to consider alternatives.
markets such as China and India. process the loan.
Technical features of vehicles:
Online buying: Most of the New buying approaches: Consumers in developing markets
developing markets are particularly Respondents in the developing are more interested in the technical
interested in purchasing vehicles, markets show greater interest aspects of the vehicle such as
parts and accessories online. Brazil in alternatives to the traditional horsepower, performance and in-
in particular stands out, with 67% of buying model, including mobility car systems. For example, 90% of
respondents saying they would like packages, vehicle-sharing and ride- respondents from Russia and China
to buy a vehicle over the Internet. share programs. In China 72% and 83% of those from India cited
Cars Online 11/12 7

8. this as an important factor in their key driver for vehicle sales, with
choice of specific vehicle, compared China having a more developed road
with 68% in the U.K. and France. network than India. On the other
Said a respondent from India: “The hand, India’s political environment
“
biggest things I look for in a car more and its positive view of foreign
I want to buy more and more are new technology features investment are factors that bode well
environmentally friendly, like GPS navigation systems, rear images for the country’s future automotive
for backing up and automatic sensing of markets.
new energy vehicles,
potential accident situations.”
such as electric vehicles Differences are also apparent in
or other clean energy Income spent on vehicles: consumer behavior. Indian consumers
Consumers in developing markets are are more likely than those in China
vehicles. But I hope to be likely to spend a higher percentage to purchase a smaller, lower-cost
able to learn and know of their income on vehicles than their car, while Chinese consumers are
more so I have all the counterparts in the mature regions. more interested than their Indian
For example, in China only 22% counterparts in alternative buying
relevant information for a of respondents will spend less than approaches like vehicle sharing.
”
purchase. one-quarter of their annual income
Chinese consumer to purchase a car; by comparison, In many respects, Russia continues
41% of U.S. consumers will spend to resemble the mature markets more
that amount. This is perhaps not than the other developing countries.
surprising as cars are relatively more For example, Russian consumers are
expensive and incomes are typically more likely to buy a used car than
lower in the developing markets. those in other developing markets
and are somewhat less interested in
Localization Is Key to Success online buying of vehicles, parts and
While certain trends are common accessories.
across the developing markets,
variances exist among the different
countries. Local insight is particularly
important in the developing markets
as conditions often evolve rapidly.
Take China and India, where a
number of factors differentiate the
two markets. For example, while
vehicle sales in China have exploded
in recent years, the growth in India
has been steadier with many industry
observers waiting for the market to
take off. And China’s vehicle market
is still much larger overall than
India’s although the population
of the two countries is
similar in size. Some
point to the differences
in infrastructure as a
8

9. Automotive the way we see it
Shopping Behavior: ‘No More Tire
Kickers’
One of the positive signs from this Intention to Acquire New vs. Used Vehicle (% saying)
year’s study is an increase in the
100%
number of consumers planning to buy 8
2 2 2 2
10 10 9
a new – rather than used – vehicle, 12 12 14 10
especially in the mature markets.
In all four mature markets (France, 80% 26
30
Germany, U.S. and U.K.) the number 33 31 Undecided
of intended new car buyers increased Used
by several percentage points, while 60%
New
the number of intended used car
buyers declined. This may represent 86 86 84 88
a response to the many new vehicle 40%
66
models and quality improvements 57
59 61
made by manufacturers.
20%
Not surprisingly, the overall number
of new car buyers remains higher in
the developing markets due to the fact
0%
that the used car market is relatively Mature
Markets
Mature
Markets
Mature
Markets
Mature
Markets
Developing
Markets
Developing
Markets
Developing
Markets
Developing
Markets
undeveloped in these regions where 2008 2009 2010 2011 2008 2009 2010 2011
many consumers are first-time buyers.
Source: Capgemini
This year’s findings indicate a move
toward smaller cars, with consumers
citing cost, fuel efficiency and Likelihood to Purchase Smaller/Lower-Cost Car (% saying likely/very likely)
environmental concerns as the key 100%
factors. In fact, consumers across
most of the markets reported a greater
likelihood to buy smaller cars this
13
year, perhaps reflecting the uncertain 80%
2010 2011
economic situation and volatile fuel
prices, as well as the introduction of
new models. In the U.S., for example, 60%
77
59% of respondents said they were 69
67
likely or very likely to buy/lease a 62
59
smaller car, up from 40% the prior 56 56 56
year. Similarly, 52% of consumers in 40% 52 50
47
the U.K. said they were likely to buy 46 45
40
a smaller vehicle, compared with 35% 35 37
33 32
the previous year. Overall, consumers
20%
in Brazil and India were the most
likely to buy smaller cars. In India the
deregulation of fuel prices and the
subsequent sharp rise in the price of 0%
gasoline in the past year are driving All Markets U.S. U.K. France Germany Russia Brazil India China
consumers to smaller vehicles.
Source: Capgemini
Cars Online 11/12 9

10. Vehicle Buying Cycle Continues to Shrink (% saying)
How long before your planned vehicle purchase/lease How long before your planned vehicle purchase/lease
did/will you begin to research vehicles? did/will you visit a dealership showroom?
40% 40%
<2 weeks
2 weeks-1 month
30% 30% 1-2 months
30 30
31
2-4 months
20% 24 20% 4-6 months
17 6-12 months
19
10% 13 10%
13
7 7
6
3
0% 0%
All Markets All Markets
Source: Capgemini
Buying Cycle: ‘Tire Kicking Is respondents had decided on one
“
Being Done Online’ vehicle make, compared with about
There is a trend Regardless of their intentions to buy 10% in the earlier stages of the buying
new or used cars, consumers spend cycle.
towards minimization of
less time shopping for vehicles today.
personal interactions with In particular, consumers are waiting Evidence of the shrinking buying
dealers during the process until the final weeks before purchase cycle can also be found in the results
to visit dealerships. Forty-three focused around the type of channel/
of buying cars. I think this device that consumers use at different
percent of respondents won’t visit
trend will become more a showroom until a month prior to points in the research process. Dealer
”
prominent. purchase, compared with 39% the visits to the showroom are low until
previous year. The bad news is that the final weeks before purchase. For
Russian consumer
this reduces the opportunities to example, at six to 12 months from
interact with customers face to face. purchase, only 15% of consumers
The good news is that those who said the dealership is their preferred
visit the showroom are serious, not channel for gathering information.
just curious. “I expect to have my mind Within two weeks of purchase, that
pretty much made up by the time I go number grows to 58% of consumers.
to a dealership for a test drive,” said a
consumer from the U.S. Consumers Use Wide Range of
Devices for Research
As the buying cycle continues to The rise of tablets and smartphones
shrink, dealers must take advantage for information gathering was evident
of every face-to-face interaction since this year in both the quantitative and
one chance may be all they get. As qualitative data. “I’d like to buy a car
one industry observer noted, “Today using my tablet and be able to see models
there are no more tire kickers. All the tire with all the specifications I want,” said a
kicking is being done online, not in the Brazilian respondent.
dealer lot.”
Use of tablets and smartphones
The research makes it clear that two was highest between one and four
weeks from purchase is a critical months before purchase: About 20%
tipping point, as this is when many of respondents said their mobile/
buyers narrow down their search to smartphone was their preferred
one final make and model. Within channel for gathering information
two weeks of purchase, 32% of during this period; 15% of consumers
10

11. Automotive the way we see it
preferred their tablet computer during ■ In the U.S. consumers are
this phase of the buying process. particularly likely to prefer the
When researching, consumers were dealership for gathering information
interested in smartphone applications in the last two weeks.
such as scheduling a test drive, ■ Brazilian respondents indicate more
configuring a vehicle and visiting a even distribution across the different
virtual vehicle showroom. research channels, compared with
other markets.
“I think in a few years most things will be
■ In Russia consumers report higher-
done using smartphones and buying a car
than-average use of desktops and
will probably be as simple as looking for
laptops all the way through the
a car on your mobile phone, then going
research, shopping and buying
to the dealer to look at it and completing
process.
the transaction (paying for it) using your
■ In France, consumers were
phone,” said a U.K. consumer.
somewhat more likely than their
As with many of the research findings, counterparts to visit the dealer earlier
the devil is in the details, with in the buying cycle.
noticeable variances by market that
need to be considered. For example: Once consumers enter the showroom,
■ Preference for mobile or smartphone
they are interested in finding a variety
is higher than average in China and of additional services, especially
India during the full buying cycle. vehicle accessories for sale (cited by
51% of respondents), car care tips
Preferred Research Device/Method (% saying)
6-12 months before purchase 4-6 months before purchase 2-4 months before purchase
70% 70% 70%
60% 60% 60%
50% 50% 50% 51
48 50
40% 40% 40%
30% 32 30% 30%
20% 20% 24 20%
21
18 17
15 14 15
10% 10% 14 13 10%
11
10 10 9
7
0% 0% 0%
All Markets All Markets All Markets
Desktop or laptop computer
Tablet computer
1-2 months before purchase 2-4 weeks before purchase Up to 2 weeks before purchase
Mobile or smartphone
70% 70% 70% Landline phone
Dealer visit
60% 60% 60% Not applicable
58
50% 50% 50%
50 47
40% 40% 43 40%
30% 33 30% 30% 34
20% 20% 20%
20 20
16 18 16 17
10% 14 12 10% 10% 13
11 11 10
0% 0% 0%
All Markets All Markets All Markets
Source: Capgemini
Cars Online 11/12 11

12. Use of Information Sources to Research Vehicles (% saying)
Information Source All Markets U.S. U.K. France Germany Russia Brazil India China
Car dealer (both new and used cars) 49 52 58 56 58 52 25 51 33
Vehicle manufacturer websites 44 51 48 37 47 55 26 44 41
Search engine 43 42 49 36 40 59 20 45 43
Dealer websites 42 49 53 36 44 53 24 38 37
Family and friends 40 30 40 28 36 51 27 50 46
Information websites/independent car
30 40 31 23 36 40 19 33 34
valuation services
Specialist motoring/automotive press 30 17 28 31 34 50 17 22 43
Top information
Auto shows 27 14 13 22 22 39 24 38 46 sources
TV advertising 27 24 21 20 16 28 27 44 30
Internet news sites 26 19 21 21 15 33 25 40 32
Web forums, blogs, Internet discussion groups 25 18 17 18 20 47 16 22 43
Independent e-tailer sites 25 16 17 21 43 40 16 13 33
Car dealer (used cars only) 22 22 29 22 28 22 14 22 13
Print advertising 20 23 17 14 13 30 18 27 15
Manufacturer/dealer social media site 19 14 16 16 7 26 15 28 32
Multiple responses allowed
Source: Capgemini
(50%), newspapers/magazines (37%) sophistication and increasing options consumers in the mature markets use
and an Internet café or wireless access available on dealer sites. In addition, TV advertising when they research
(36%). Of less interest are: having dealer social media sites often drive vehicles.
a children’s play area, TV/movies traffic to their corresponding websites.
available for viewing, food for sale or The use of search engines, and web Interest Grows in Alternative
music listening stations. The pattern forums, blogs and discussion groups Buying Models
was quite similar across all markets. also rose this year. In a continuation of a trend identified
last year, consumers express a growing
Web is Key Source for Vehicle Among non-web-based sources, willingness to consider new, non-
Information TV advertising posted gains in the traditional approaches to vehicle
During the research process developing markets, particularly buying and ownership. Almost half of
consumers turn to a wide array of India (cited by 44% of consumers, respondents would look at a mobility
information sources, but increasingly compared with the average of 27%) package as an alternative to traditional
web-based sources dominate. This and China (30%). This finding buying/leasing of a vehicle and nearly
year saw a rise in the number of indicates that building brand 40% would consider a vehicle-sharing
respondents saying they use dealer awareness via TV remains vitally or ride-share program. A mobility
websites during the buying process, important in newer automotive package typically provides access
perhaps reflecting the growing markets. In contrast, only 21% of to a wide range of vehicles, services
12

13. Automotive the way we see it
and accessories that can be used as Likelihood to Consider Alternative Buying Approaches (% saying likely/very likely)
needed by the consumer for a fixed
Vehicle-Sharing Program Mobilty Package Ride-Share Service
price and a specified time frame. This
100% 100% 100%
developing trend may reflect a gradual
shift from products to services; from
traditional vehicle ownership to 2010 2011 2010 2011 2010 2011
“power by the hour.” 80% 80% 80%
“I think that the future will be short-term
64
hire of a vehicle,” said a U.K. consumer. 60% 60% 60%
“It is simply going to become far too 56
53
impractical to own a vehicle.” 49
52
49
40% 40% 40%
A respondent from Germany agreed,
expressing a growing sentiment 28
among consumers: “I would like to pay 23
20% 20% 24 20%
a certain amount to a manufacturer, and 21
17
15
use a car from them for a certain period
of time and then return it to any of their
dealers – car-sharing, so to speak.” 0%
Mature Developing
0%
Mature Developing
0%
Mature Developing
Markets Markets Markets Markets Markets Markets
The interest in new buying models
was particularly pronounced in Source: Capgemini
developing markets (excluding Russia)
and among younger consumers.
Half of respondents age 18 to 34 and depending on their needs at that safety, reliability, price and interior/
would consider a mobility package, time. Participants open an account exterior styling. This year was no
compared with 34% of consumers 50 online and get credits that are debited exception. As in the past, all the
or older; 42% of younger consumers from the account when they rent a elements tend to matter somewhat
were interested in vehicle sharing, vehicle. more in the developing markets than
compared with 26% of those 50 or in the mature regions, no doubt due
over; and 44% of younger consumers In addition, vehicle manufacturers to the inexperience of buyers in those
would consider ride-share programs, including Ford, Daimler, VW and developing regions.
as compared to 27% of older BMW are involved in vehicle-sharing
respondents. services. And the Hertz On Demand Aftersales servicing has gained ground
program enables consumers to rent in the past year. Aftersales was ranked
If this trend continues it could lead a vehicle when they need it, without the fourth most important factor
the industry to consider alternative membership fees. in selecting a vehicle this year (tied
business models. Recognizing the with interior/exterior styling and fuel
potential impact of this change, some Vehicle Choices: What Matters economy), up from seventh position
car rental companies and vehicle Most the prior year.
manufacturers are testing models like When consumers finish their
mobility solutions and vehicle sharing. shopping and decide to buy, the
Peugeot, for instance, launched key factors that influence their final
its “Mu by Peugeot,” which allows decision come down to the intrinsic
consumers to rent a vehicle, scooter, elements of the vehicle and which
bike or accessory whenever they want have been consistent for many years:
Cars Online 11/12 13

14. The Role of the Web: Internet Usage
Expands Into New Areas
Internet is Dominant Research Tool (% of consumers saying they use the Internet as an information; and mobile web growth
information source during the vehicle buying process) during the buying cycle and post-sale
as consumers look for vehicle-related
100%
smartphone applications.
80% What Consumers Want From the
Web
Price and product information
60%
continue to be the primary web
features consumers look for when
they research vehicles. Additional
40%
options high on the list include the
ability to compare vehicles and the
20% ability to get guidance and advice over
the web.
0% Some consumers said they would like
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
to get further price-related information
such as usage costs during ownership.
Source: Capgemini Noted a French respondent: “You are
given lots of information on the web about
the car and the purchase price when you
Just when we thought the use of the buy it, but what about the real costs to
web during the vehicle buying process drive the car over a year according to
had hit a saturation point, it grows a various usage models?”
bit more. One of the most pronounced
trends in car buying behavior over the
Influence of Social Media Grows
past decade has been the increased
dependency on the Internet during Consumers are increasingly expanding
the research process. This year the their web usage during the research
number of consumers using the web process to include social media,
edged upwards to 94% overall. particularly in developing markets.
Among the tools consumers turn to
The increased role of the web are dealer and manufacturer social
was driven in part by gains in media sites, automotive blogs and
the developing markets. More discussion groups, informational/
importantly, the use of the encyclopedia sites, personal and
Internet has expanded professional social networking sites,
into areas such as: video- and photo-sharing sites and
online buying of social messaging/micro-blogging sites.
vehicles, parts
and accessories; China reports especially high use
growing reliance across most types of social media sites.
on social media This likely reflects overall gains in
and user-generated Internet penetration in the country,
content as a source as well as growing interest in sites
for vehicle and dealer such as Weibo, a China-based micro-
14

15. Automotive the way we see it
blogging site that claims to have Use of Social Media and Other Online Tools (% saying)
140 million users.
Dealer or manufacturer social media sites 31
43
28
Consumers are turning to social Third-party automotive discussion group/forum 42
24
media for opinions and reviews about None of these 2
23
specific car brands/makes and dealers, Third-party automotive weblog 33
19
discussions with other consumers, Informational/encyclopedia site with user-generated content 31
16
special deals or offers, discussions Personal social networking sites 28
13
with automotive experts, helpful hints Online video site/video-sharing service 31
about vehicles and news about new Professional social networking sites 12
24
vehicles. The content that consumers Photo-sharing sites 9
26
find on these sites can be influential in Mobile phone applications/advertisements 9
18
their buying decisions: 71% said they Social messaging/micro-blogging services 8
23
would likely purchase a vehicle from a Social bookmarking sites 8
16 Mature Markets
particular car manufacturer or dealer RSS feeds 7
12
Developing Markets
if they found positive comments Other 1
posted about that vehicle make/brand, 0% 10% 20% 30% 40% 50%
manufacturer or dealer; and 51% said
they would be less likely to buy a Multiple responses allowed
Source: Capgemini
vehicle from a particular manufacturer
or dealer if they found negative
Influence of Positive and Negative Comments on Buying Decisions
comments posted on social media (% saying likely/very likely)
sites. Both findings highlight the
100%
increasing importance of managing,
monitoring (by vehicle brands/ Positive Comments Negative Comments
models, themes, positive/negative
sentiment, purchase intent, consumer 80% 81
13 83
78 78
demographics, etc.) and analyzing
social media content. 71 71
68 67
60%
Said a Russian respondent: “I will not 59
buy a car that is not liked by my friends 51
54
52
54
50 50
and relatives and doesn’t have the largest
45 44
number of positive comments on the 40% 42
Internet.”
Growing Focus on User- 20%
Generated Content
Increasing usage of social media
isn’t surprising given the importance
0%
consumers place on user-generated
All Markets U.S. U.K. France Germany Russia Brazil India China
content during the vehicle buying
process. Nearly three-quarters of Positive comments: “For those online social media tools that you expect to use when researching your vehicle purchase, how
respondents say it is important to find much more likely would you be to purchase a vehicle from a particular car manufacturer or dealer if you found positive comments
posted about that vehicle make/brand, manufacturer or dealer?”
user-generated content on dealer and Negative comments: “For those online social media tools that you expect to use when researching your vehicle purchase, how
much less likely would you be to purchase a vehicle from a particular car manufacturer or dealer if you found negative comments
manufacturer websites, up from 65% posted about that vehicle make/brand, manufacturer or dealer?”
Source: Capgemini
the prior year. The results were highest
Cars Online 11/12 15

16. in the developing markets. This to find owners who would be experiencing
seems to point to the importance the same driving conditions as you.”
of including both subjective
(consumer reviews and In the U.S., many automotive-related
opinions) and objective websites, such as Edmunds.com
information (price and and AutoTrader.com, include user-
product specifications) generated content and reviews to help
on websites. their online customers with vehicle
buying decisions. On AutoTrader’s site
This sentiment was evident consumers can read a consumer or
in the qualitative data, such as this expert review, write a review or watch
comment from a consumer from the a video review.
U.S.: “The input from average users/
owners posting on social websites and
manufacturer websites and the ability
to ask questions and obtain answers,
interact with those individuals on those
sites is a bigger factor in my decision than
previously. One feature that would be
helpful would be a way to sort owners’
posts by general location or state in order
Importance of User-Generated Content on Dealer and Brand Sites Grows
(% saying important/very important)
100%
“
2010 2011
I will continue to get
83 83 83
information over the 80%
79 78 80 81
Internet, especially through 73
69
forums and also opinions 65 65 67
60% 62 61
of other web users who 60
57
54
own the car in which I am
”
interested. 40%
39
French consumer
20%
0%
All Markets U.S. U.K. France Germany Russia Brazil India China
Source: Capgemini
16

17. Automotive the way we see it
Online Buying: Latent Demand
Strengthens
Consumer interest in buying vehicles,
parts and accessories over the Internet
(the complete transaction, except
delivery of the vehicle) continues
to grow despite the fact that the
capability remains scarce in most
markets. In this year’s study, 42% of
consumers said they were likely or
very likely to purchase a vehicle over
the Internet, up from 37% two years
ago. That translates into millions of
potential transactions. Consumers in
developing markets are particularly
interested in online buying and are
quite willing to consider this new type
of purchase model.
Likelihood to Purchase Vehicle Over the Internet (% saying likely/very likely)
100%
2009 2010 2011
84
80%
75
67
60% 63
57
53
52
49
42
40% 41
37
35 34
33 32
29 30 30
28 28 29
23 23
21 22
20% 21
19
0%
All Markets U.S. U.K. France Germany Russia Brazil India China
Source: Capgemini
Cars Online 11/12 17

18. Primary Reason to Purchase Vehicle Over the Internet (% saying)
Expect price discount Do not want to interact in person with dealer
Do not want to negotiate price in person with dealer Ease and speed of transaction
Ability to purchase vehicle that is not available locally Do not want to be talked into buying something I do not want
Nearest dealership is too far away Other
50%
46
43
40%
38 36
35
30% 35 35 35 35
29 28 28
23
20%
18
13 15
10% 11 11 11 12 11
9 8 9 10
7 8
5 2 0 4 1 1 5 5 1 0 6 4 2 0 2 0
3
0%
All Markets U.S. U.K. France Germany
50%
44
40%
39
35
33 34
30%
25 26 25
20%
15
14 12 13
10% 12 12
9 10
9
4 1 0 5 1 0 4 5 4 0 3 1 0
2 3
0%
Russia Brazil India China
Source: Capgemini
New car buyers and younger This has remained consistent over
consumers are also especially the past few years, although price
interested in online vehicle buying. is a somewhat stronger factor in
Almost half of intended new car the mature markets. Germany is
buyers said they would consider particularly focused on price, with
buying a vehicle online, compared 46% of consumers identifying it as the
with 27% of used car buyers. Among primary reason to buy a car online.
the 18-34 age group, 43% would like
to buy a car online, as compared to “I’ve bought my last two new vehicles
36% of those 50 or older. over the Internet and expect to do the
same in the future. The big thing I’d like
Price Drives Online Buying to see is having one price, doing away
Price discount along with ease and with negotiation and haggling, which I
speed of transaction are cited by find to be both distasteful and unpleasant.
consumers as the main reasons to I don’t mind if I never have to talk with a
purchase a vehicle over the Internet. car salesman again,” said a respondent
from the U.S.
18