As CES gets fully underway this week, the discussions around COVID have been plenty but the greater impact on the event will come from chip shortages affecting all exhibitors (present or not) who are looking to introduce new technologies, concepts and carlines in 2022.
Automotive manufacturers are in the thick of these delays and, whilst we know how businesses are being impacted, the key question is how are consumers reacting to the news? At Teads, we are always looking to understand the purchase journey and so, during our latest piece of global automotive research, we created an additional survey on the Teads platform amongst auto-intenders in the US, UK, France and Germany, specifically about impact of chip shortage on consumer purchase. The full results of both studies will be released next week, but given CES is this week we wanted to give a preview with a specific focus on the impact that the supply chain issues are having.
What is immediately clear from looking at the results, is that supply issues are seriously affecting purchase decisions, with 89% of consumers looking to buy a car in the next 6 months are aware of the existence of a chip shortage. 31% say the chip shortage will affect their plans to buy a car, specifically 14% will consider used cars and 8% will delay buying their car.
Brand choice is influenced by availability as 9% of immediate global consumers (in the next 6 months) will simply choose a brand that is available for their purchase. This is a trend in Germany in particular, where a huge 15% of customers would just choose an available brand.
70% of immediate purchasers have clear expectations towards brands due to reduced availability and delays. But, critically, they expect clear communications and updates from their desired brand. 33% of customers expect to be updated regularly on status of delivery while 21% expect some additional support with services by the brand/retailer like rental cars or parts and service offerings.
As with all purchase decisions, price is a key factor, with 31% of customers expecting price reductions in return for holding out longer waiting time, increasing to 34% among European auto intenders.
All of this shows that, for a large proportion of people looking to purchase a car in 2022, they have a clear roadmap of how the chip shortage is going to affect their purchase journey. The decision for automotive marketers now is how they adapt communications and marketing strategies in order to match these expectations and show they are ahead of the pack.
Henner Bloemer, Global Senior Industry Director, Automotive, Teads