Voice of Customer: In-Car Services and Features, Passenger Vehicles, China, 2024

Project Approach

Key Findings

Software is Integral to Delivering the Future of Mobility

“CASE is Dead, Long Live the SDV!”

We are Right at the Start of the SDV Journey

OEM-Operated Digital Ecosystems to Support Features on Demand

Frost & Sullivan Observes 3 Distinct OEM Approaches to Offering Features on Demand Today

Research Methodology

China Sample

Respondent Profile: Demographics

Respondent Profile: Household Characteristics

Respondent Profile: Vehicle Ownership and Driving

Vehicle Characteristics: Engine and Vehicle Segment

Interest in Innovative New Technologies in Cars is High

Majority of Customers 56% See a Digital and Connected Car as the Strongest Vision of the Future

Consumers in Shanghai have the Most Futuristic Vision of the Car of the Future Compared to Other Cities

Drivers of Small and Mid-size SUVs Lead in their Vision of the Future Vehicle as a “Smartphone on Wheels”

Large Discrepancy Between Owners of Different Vehicles and their Vision of the Future Car

Almost Half of Customers Want a Car with Advanced Applications

BMW and Ford Owners have the Highest Expectations for In-Car Technology

65% of Customers are Very or Extremely Interested in In-Vehicle Connected Services

There is a Steep Decline in Interest in Connected Services in Chongqing

Interest in In-Vehicle Connected Services Varies Widely Based on Consumers’ Interest in Technology

The Most Interested Age Demographics in Connected Car Services are Those Aged 26-40 and 41-60

Sharing Driving Data with Third Parties is Less of a Concern in China—Only 6% Would Definitely Not Share

Large SUV Owners have the Least Concerns Over Sharing Driving Data

The Most Popular In-Car Activity is Listening to Music and Using Maps for Navigation

After Music Streaming, Video Streaming and Built-In Navigation are the Next Most Popular Functions

Services/Functions Regularly Used Show City-Level Differences

Volkswagen Users Say They Use Services/Functions Within the Vehicle Significantly Less than Other Vehicle Owners

Close to One-Third of Drivers Use in-Car Monitoring Features Today

Drivers in Shanghai Use In-Car Monitoring Features the Most Today

Voice Assistants in the Car are Used Most to Search Routes or for Calls/Texts

Using a Voice Assistant to Call/Text a Person is the Most Popular Feature in Shanghai Top City for Voice Assistant Usage

44% of Respondents Use Over-the-Air OTA Updates Regularly

Only 33% of Respondents in Chongqing Regularly Use OTA Updates

Basic and Subcompact Drivers Use OTA Updates the Most Frequently

Consumers with Kids Under 6 Most Regularly Install New In-Car Services via OTA Updates

Huge Differences in OTA Usage Exist Between Brands in China

Small and Mid-Size SUV Owners are the Biggest Segment of Consumers That Have Paid to Unlock Features on Demand

Shanghai has the Highest % of Consumers that Have Used Features on Demand

Nearly 80% of Consumers are Very Comfortable or Comfortable in Making Online Payments

Respondents in Shanghai and Beijing have the Highest Levels of Comfortability

93% of Large SUV Drivers are in the 2 Highest Groups in Level of Comfort

Tesla Owners are Most Comfortable in Making Online Payments Via a Smart Device

Interest in Paying for Services on the Go is High

Drivers of Large SUVs have the Highest Interest in Paying On the Go

Tolls are the Most Preferred Service to be Paid for via In-Car Payment Functionality

Ford, BAW, and Acura Owners Show the Highest Interest in Paying via In-Car Functionality

There are Big City-Level Differences in Attitude Toward Making Purchases via an In-Car Marketplace

Interest Levels in Services to Install via In-Car App Stores Vary by City—Shanghai Respondents Exhibit the Highest Interest

There is a Large Difference Between Owners of Vehicle Brands for Interest in Installing Apps

Only 40% of Those Surveyed have Heard of SDVs

BEV Owners have the Highest Awareness of the SDV

Drivers of Large SUVs have the Strongest Awareness of SDV

Awareness of SDV Varies Widely by Drivers of Different OEM Brands

Attitudes Toward the Concept of SDV are Very Positive

SUV Owners Like the Idea of the SDV the Most

Respondents with Kids Under 6 Have the Most Positive Outlook Toward Using SDVs

Ford and Tesla Owners Like the Idea of Using an SDV the Most Out of All Vehicle Owners

Improved Safety Features are Viewed as the Most Desired SDV Benefit, But Other Features are Seen as Equally Important

Features on Demand Introduction in Survey

26 Features on Demand Tested

73% of Consumers are Willing to Pay for Additional Features

Willingness for Post-Purchase On-Demand Vehicle Features is Highest Among Large SUV Owners

Willingness for Post-Purchase On-Demand Vehicle Feature Upgrades

Safety and Security, as well as ADAS and Autonomous, are Categories for Which Consumers are Most Likely to Pay Additional Fees

Likelihood to Pay Additional Price for Services to Improve In-Vehicle Experience by Province

Likelihood to Pay Additional Price for Services to Improve In-Vehicle Experience

Driver and Interior Monitoring Systems and AR-HUD Hold the Highest Interest for Consumers

Likelihood to Purchase Features on Demand in the Next Car

Close to 9 in 10 Consumers are Seen as Prospects for Features on Demand

Regional Variances for Features on Demand are Sizeable

Drivers of Large SUVs Display the Most Interest in Features on Demand

Respondents with BEVs Indicate Higher Interest than ICE Owners

Respondents Under 61 Years Hold the Greatest Interest in Features on Demand

Higher Educated Customers are More Likely to Purchase Features on Demand

Interest in Features on Demand

Price Points Tested

Willingness to Pay and Price Elasticity of Demand

Features on Demand Price Elasticity of Demand

Interest in Purchasing: Adaptive Driving Sounds and Lighting

Interest in Purchasing: Cinema Sound Experience

Interest in Purchasing: Personalized Sound Zones

Interest in Purchasing: Premium Audio

Interest in Purchasing: User Profiles

Interest in Purchasing: Driver and Interior Monitoring System

Interest in Purchasing: AR-HUD

Interest in Purchasing: Car2Home and Home2Car Functionality

Interest in Purchasing: In-Car Karaoke

Interest in Purchasing: 2D, 3D, and AR Navigation

Interest in Purchasing: Powertrain Upgrade

Interest in Purchasing: Sentry Mode

Only 6% of Chinese Drivers Said They are Not Very Likely to Pay for Features on Demand in a Future Vehicle

Safety and Security Sees the Highest Historical Features on Demand Purchasing Throughout China

Categories of Features on Demand Purchased in the Past

The Most Popular Way to Find Out About Features on Demand is through OEMs

Satisfaction with Purchased Features on Demand is High

Features on Demand Meeting Consumer Expectations

Small and Mid-Size SUVs Represent the Largest Group of Features on Demand Users

The Ability to Improve the Vehicle’s Safety is the Most Appreciated

PHEVS are Poised for the Biggest Rise Between Current and Future Vehicles

Almost One-Third of Respondents Would Consider a BEV for their Next Vehicle

Likelihood to Consider Type of Engine for Next Vehicle

25% of Respondents Say They Will Most Likely Purchase C Segment Vehicles Next

Price Respondents Expect to Pay on Next Vehicle Purchase

Average Duration of Car Ownership

Growth Opportunities Fuel the Growth Pipeline Engine

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8

Benefits and Impacts of Growth Opportunities

Next Steps

List of Exhibits

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