Car Ownership: Shifting Attitudes after Corona

• Corona and changing mobility attitudes
• Interest in mobility services and public transport down
• Modes of urban mobility changing
• Support for electric vehicles in Germany
• Additional investment in battery infrastructure

Corona and changing mobility attitudes

The first automotive sector studies conducted since the start of the global corona pandemic show a fundamental turnaround in consumer mobility attitudes: Sharing offers are being avoided and the car is becoming even more popular – particularly in terms of individual ownership. An additional push to increase electric car ownership is part of the recently announced German stimulus package.

Interest in mobility services and public transport down

According to the Capgemini “COVID -19 and the automotive consumer” study, interest in car ownership amongst under 35-year-olds is on the rise for the first time in years. The findings are based on a sample of 11,000 consumers in 11 countries responsible for 62 percent of global annual passenger vehicle sales. 44 percent of younger consumers who have never previously owned a car are currently considering purchasing one in the coming months. Consumer demand for mobility services and public transport will also reduce significantly – now and in the future – according to the report.  

Modes of urban mobility changing 

Post-corona, we can expect that urban mobility will most likely be very different. Within a matter of weeks, the pandemic has changed something that car manufacturers have failed to do for years; namely altering the intended buying behavior of younger customers. For some time, the focus for 18- and 35- year-olds has been on mobility and service use and less about car ownership. Instead of driving their own car, young consumers preferred intermodal public transportation and other shared mobility options. The coronavirus crisis has revived interest in car ownership. This finding is reinforced by a second study conducted by the Boston Consulting Group. The group asked a sample of 5,000 individuals about their new mobility preferences. Not surprisingly, the car ranked at number one. 

Support for electric vehicles in Germany

In Germany, the government has announced plans to double the amount of purchase incentives already in place for battery electric vehicles (BEVs) as part of its EUR 130 billion stimulus package intended to shore up the country’s post-coronavirus economy. This translates into a cash grant of EUR 6,000 for each BEV purchased. This is supplemented by an additional EUR 3,000 subsidy from car manufacturers. The measure apply for cars with a value of up to 40,000 Euros (excluding value-added tax).   

Additional investment in battery infrastructure

To further boost e-mobility, an additional EUR 2.5 billion will be allocated to existing infrastructure programs to build additional charging stations and support further battery cell production. Both changing consumer behavior and the generous grants available will create new opportunities for Germany’s strong automotive industry as well as attract new foreign investors to the sector.