CARS: WHATEVER IT TAKES? - An international survey conducted in 18 countries
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EDITORIAL Rising fuel prices, higher maintenance costs, Could the electric car alleviate the cost pressure pressure on the used-car market and electric cars as an environmentally sound vehicle option? that are often too expensive: While the car was Currently the opposite appears more likely. In 2022 mainly associated first and foremost with joy and the EU decided to ban combustion-engine vehicles freedom, particularly in Germany, it is now turning from 2035. If European and US manufacturers stick to into a necessary luxury item. The study conducted their current high priced electric vehicles, many more by us this year shows that more and more car car drivers will find it difficult to buy a new car. drivers are making compromises in order to buy New social challenges may emerge as a result: and maintain a vehicle. “Mobile” exclusion is a possibility – especially as lots of people are still dependent on a car, This development can already be clearly seen in particularly in rural areas. the economic behaviour of buyers. They are no longer willing to do whatever is necessary to own Policymakers also need to act here. Mobility a car. In order to soften the financial pressure, needs to remain accessible for all. This is shown many drivers are deciding to “drive less to for example by the debate about government consume less”. The alternative of not owning a car measures such as the fuel discount. Trade and is also becoming more popular. industry are also well advised to find answers to the emerging cost dilemma. From an environmental point of view, this is not the only positive effect of this cost pressure. I hope you find this an exciting read and learn Drivers are also thinking more seriously about many interesting things. soft mobility. Our latest survey shows cleary, that acceptance of walking, bicycle or electric scooter is rising as these means of transport become more affordable and practical. Michel Thebault, CEO Consors Finanz 03
CARS: WHATEVER IT TAKES? 2023 TABLE OF CONTENTS METHODOLOGY The economic and marketing analyses, as well as the forecasts, were performed in 1 ARE CARS BECOMING A LUXURY? A must-have item The cost of using a car has rocketed 07 08 22 conjunction with the survey and consulting firm C-Ways, a specialist in Anticipation Marketing. Cutting costs, at any cost 38 Quantitative consumer interviews were conducted by Harris Interactive between 2 23 June and 8 July 2022 in 18 countries: Austria, Belgium, Brazil, China, France, Germany, Italy, Japan, Mexico, Netherlands, Norway, Poland, Portugal, South Africa, COMPLEMENTARY MOBILITY SOLUTIONS 49 Spain, Turkey, United Kingdom and United States. In total, 16,600 individuals were interviewed online (CAWI method). It’s hard to live a carless life 50 These individuals, aged 18 to 65, were drawn from national samples representative of each country. The quota method was employed to ensure that the sample The mobility mix: an urban trend 59 was representative (gender and age). 3,000 interviews were conducted in France and 800 in each of the other countries. 3 ELECTRIC VEHICLES? SURE, BUT AT WHAT PRICE? 69 Cars: a source of exclusion? 70 The electric coup de grâce 79 EPILOGUE 84 Co-authored by: Luc Charbonnier and C-Ways Editorial coordination: Patricia Bosc COUNTRY FACT SHEETS 85 Design: © Altavia Cosmic Illustrations: Altavia Cosmic, Shutterstock APPENDICES 105 04 05
CARS: WHATEVER IT TAKES? 2023 ARE CARS 1 BECOMING A LUXURY? Although there have been signs in recent years that car sales are running out of steam, and not only because of the Covid crisis, motorists still seem unwilling to live without a vehicle, despite the financial burden that purchasing and using a car entails. The main driver of these budgetary tensions is fuel, with prices at the pump having risen dramatically. This new 2023 edition of the study demonstrates that people are prepared to travel less to avoid too much financial suffering, but also that they do not want to be alone in taking action. 06 07
CARS: WHATEVER IT TAKES? 2023 A must-have Fig. 1 / Context Global new passenger vehicle sales, 2005-2023 In millions of units. item 2005 2006 2007 45.4 48 50.8 The sales bounce observed in 2021, following 2008 50 the Covid crash of 2020, 2009 49.7 has failed to mask the 2010 55.8 market’s decline General context 2011 57.8 2012 60.9 2013 63.4 China and the United States, the world’s two largest A STRUGGLING MARKET 2014 65.7 markets, saw their sales peak in 2017 (25 million Could the golden age of the automobile be behind vehicles sold) and 2016 (18 million), respectively. 2015 66.3 us, at least in terms of sales? This is the message This was followed by a sharp drop that cannot be one might take away after glancing at global new 2016 69.5 blamed solely on the Covid pandemic (Fig. 2). passenger vehicle sales over the last few years. 2017 70.7 The curve illustrating these figures since 2005 The situation has been less clear cut in Europe, appears to have peaked in 2017, when around 2018 68.7 Japan and Brazil, but the overall picture is more or 70 million units were sold (Fig. 1). 2019 64 less the same. Indeed, all the countries surveyed The sales bounce observed in 2021, following posted their highest sales figures before 2021, with 2020 53.9 the Covid crash of 2020, has failed to mask the fortunes varying from one year to the next (Fig. 3). market’s decline. What’s more, supply chains are 2021 56.4 not expected to return to normal in the foreseeable 2022* 52.5 future, particularly when it comes to semi- conductors and vehicle deliveries. 2023** 60.8 Source: OICA. * Estimate. ** Forecast. 08 09
CARS: WHATEVER IT TAKES? 2023 Fig. 2 / Context 24.4 24.7 23.7 THE EVER-RISING PRICE Germany and Spain, price rises have been more Global new Chine passenger vehicle État-Unis sales, 2005-2021 21.2 24.4 24.7 21.5 21.5 OF NEW VEHICLES gradual, but they remain significant (7%, 9% and In millions of units. 23.7 19.7 20.2 While sales volumes have fallen, the same cannot 7% respectively). Only in Brazil and Japan, where Chine État-Unis 21.2 21.5 21.5 17.9 20.2 be said for the price of new cars. In most of the trends have been strikingly similar, has the price 17 19.7 China 17 United States 16 15.5 17.9 17.4 17.5 17.2 17.2 17 countries covered by this survey, prices have been curve remained relatively flat in recent years, 14.5 16.5 17 17 16 13 13.8 15.5 15.5 17.5 14.5 14.9 rising steadily for almost a decade, with increases after a sharp increase in 2015 (Fig. 4). 14.4 17.4 17.2 17.2 17 16.5 10 13.8 14.5 12.7 15.5 of over 20% in China, the US and the UK. In France, 13 11.6 14.9 14.4 14.5 10.3 12.7 10 6.8 11.6 6.3 5.2 10.3 4.0 6.8 6.3 5.2 4.0 Fig. 4 / Context 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Change in the average price of new vehicles Source: OICA. In €. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Germany France United Kingdom Spain Netherlands China Japan Brazil United States Germany France United Kingdom Spain Netherlands China Japan Brazil United States Fig. 3 / Context 45,000 Global new passenger vehicle sales, 2005-2021 45,000 42,380 In millions of units. 42,380 Germany Germany France France United United Kingdom Kingdom Spain Spain Netherlands Netherlands Japan Japan Brazil Brazil 40,000 40,000 5 5 35,000 35,000 4 4 30,000 3 3 30,000 25,000 2 2 25,000 20,000 1 1 20,460 20,000 20,460 15,000 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 15,000 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Statista. Source: OICA. 10 11
CARS: WHATEVER IT TAKES? 2023 Fig. 5 WIDE VARIATIONS IN AVERAGE PRICES How much did you pay for this vehicle (total price A WEIGHTY PRICE Against this backdrop of rising prices, the average minus any discounts offered and negotiated)? The 2022 edition of L’Observatoire Cetelem became heavier when equipped with electric Share of respondents who have at least one car. focused on the SUV craze. This is a class motors, due to the presence of batteries, sum paid by the motorists surveyed for this edition In €. of vehicle whose weight is an inherent the average weight of European vehicles has of L’Observatoire Cetelem is €16,181, a figure that characteristic. Given that this edition centres remained stable since 2011, at under 1,400 kg. is slightly higher in Europe (€16,712). This narrow EUROPE 18-COUNTRY AVERAGE €16,712 AVERAGE €16,181 on costs, we thought it would be interesting difference between the two main geographical to examine how the price per kilogramme of However, the price per kilo of cars has risen regions under consideration, Europe and “the rest vehicles has evolved over the last few years. steeply over the last decade, driven by the cost Germany 20,084 of the world”, can be largely explained by the very Isn’t this the ratio to which consumers refer of materials and equipment that improve quality. high average price of €27,794 observed in China, Austria 18,340 when they do their food shopping (Fig. 6)? For instance, prices in the UK have risen by almost 30%. In France, the increase has been the world’s largest market (Fig. 5). Belgium 18,800 It is worth noting that despite the rise of SUVs, a little less dramatic, at around 25%, with the This is a relatively new market in which new-car which became slightly leaner between 2011 price per kg reaching €15.92. Incidentally, this is Spain 18,666 sales have been particularly strong compared and 2020 in their petrol and diesel guises, but the same price as a kilogramme of minced beef. to other countries. With the exception of Poland, France 16,553 the European country where the average price of Italy 17,259 a vehicle is the lowest (€7,964), one must head Fig. 6 / Context to the emerging economies of Brazil, Mexico and Norway 20,169 Change in the average price per kg of cars Turkey to find the lowest average prices. In contrast, Ratio between the average price and the average weight of a new passenger vehicle. In €/kg. Netherlands 15,194 Germany, where large saloon cars reign, Norway, 19.14 where electric cars are king, and the United States, Poland 7,964 Germany France United Kingdom Spain Netherlands the world’s second largest market, post an average Portugal 16,110 18 17.99 price of over €20,000. At €16,553, France is in line United 14,696 with the average figure. Kingdom 16 15.92 Turkey 9,680 15.70 15.40 South Africa 13,093 Japan 16,946 14 13.68 China 27,794 12.74 12.64 United States 20,278 12 Mexico 10,459 10.76 10.46 10 Brazil 9,167 2001 2005 2010 2015 2020 Source: L’Observatoire Cetelem de l’Automobile 2023. Source: ICCT. 12 13
CARS: WHATEVER IT TAKES? 2023 A purchase Fig. 7 When you purchased your vehicle (new or used), did you think the price was...? Share of respondents who have at least one car and financed it other than by leasing. that is not USED CAR In %. 12% 8% EUROPE 58% 18-COUNTRY 53% taken for granted AVERAGE 25% AVERAGE 30% Very reasonable Quite reasonable Quite high Very high 5% 9% 3 5 4 8 7 10 9 10 10 9 10 11 12 12 12 12 15 A REASONABLE PRICE... SECOND HAND 25 The steady increase in the price of cars does not appear to overly trouble those who own one. 6 out of 10 respondents believe that they paid a 47 reasonable price for their vehicle. Europeans are 51 53 52 49 considerably more likely to hold this view 51 63 56 60 58 59 53 (7 out of 10). If we examine the results in greater 66 60 59 39 69 geographical detail, we see that the Portuguese 64 and Austrians are the most satisfied (8 out of 10), while the Brazilians and South Africans are far more split (4 out of 10) (Fig. 7). It is apparent throughout this report that these two countries often coalesce 32 around certain views. 30 37 32 23 35 26 25 32 27 28 26 21 29 However, a more detailed analysis of the data 25 17 22 16 uncovers a clearer divide between buyers of used 18 cars and those who buy new vehicles. 77% of the 10 10 9 10 9 4 5 5 5 4 5 5 7 7 4 4 former say they are happy with the price they paid 3 for their vehicle, compared with just 57% of the latter. This is a substantial gap and one that can be 6 out of 10 respondents believe they paid a reasonable Germany Austria Belgium Spain France Italy Norway Netherlands Poland Portugal United Kingdom Turkey South Africa Japan China United States Mexico Brazil observed in all the countries surveyed. price for their vehicle. Source: L’Observatoire Cetelem de l’Automobile 2023. 14 15
CARS: WHATEVER IT TAKES? 2023 Fig. 8 TAKING A FINANCIAL HIT In contrast, 43% of Turks believe that buying a car IS UNAVOIDABLE is only for those who can afford it, compared with Do you believe that owning a car is...? To all respondents. In %. However, a reasonable price does not necessarily an overall average of only 15%. The tough economic make a car easy to purchase. Although buying a car and financial circumstances the country has been The preserve of wealthier individuals EUROPE 15% 18-COUNTRY 15% Achievable, but only through financial sacrifices AVERAGE 72% AVERAGE 69% may generally seem affordable, it requires sacrifices facing for many months now go a long way to Financially achievable for everyone 13% 16% that make owning a vehicle less enjoyable. 7 out explaining this result. With inflation rising at a rate of 10 motorists believe that it can be done, but not far beyond that of other countries and the value of 3 without a degree of financial sacrifice (Fig. 8). On this the Turkish lira falling sharply, it is difficult for the 10 8 10 14 14 14 13 12 11 issue, respondents in Europe and in the rest of the population to be optimistic about buying a car. It 18 17 15 17 18 20 21 world are more or less in agreement. One country should also be noted that the feeling that cars are stands apart somewhat, by offering a much more only for the wealthy is generally more pronounced 43 positive outlook. Only 53% of Chinese respondents among non-vehicle owners, with 3 in 10 being of believe that buying a car and making financial this opinion. 53 sacrifices go hand in hand, but more importantly, 44% think that it is feasible for everyone. Constantly 63 and rapidly improving access to cars for a broad 73 68 67 79 64 73 78 section of the population in recent years is 61 77 73 67 73 73 77 73 undoubtedly a factor in these responses. 46 44 27 19 18 19 20 19 12 13 15 9 9 10 11 8 11 11 9 Germany Austria Belgium Spain France Italy Norway Netherlands Poland Portugal United Kingdom Turkey South Africa Japan China United States Mexico Brazil Source: L’Observatoire Cetelem de l’Automobile 2023. 16 17
CARS: WHATEVER IT TAKES? 2023 AN EFFORT RATE THAT IS PEAKING Fig. 9 / Context Effort rate* for the purchase of a new passenger vehicle Indispensable According to motorists, buying a car is achievable but requires sacrifices to be made. The indicator appropriately named the “effort rate” shows this in stark relief. in 2021 In %. Germany 83 18-COUNTRY AVERAGE 104% just as they are Measured by calculating the ratio between Austria 71 the price of a car and the average annual MOTORISTS ARE NOT PREPARED The contrasts are starker when we compare the income, this rate is close to or greater Belgium 79 TO GIVE UP THEIR CARS different generations. 34% of under-35s would be than 1 in some countries (Fig. 9): buying Cars are considered accessible if certain sacrifices prepared to no longer own a car, compared with a car costs some individuals their entire Spain 106 are made, but they remain fundamentally expensive just 26% of over-35s. In Germany and Norway, annual wage. France 73 in the eyes of motorists, even if the consensus is 1 in 2 people can see themselves doing so, versus In the absence of homogeneous global Italy 87 that they remain essential. Three-quarters believe only 1 in 4 in Turkey and 1 in 5 in China. In France, statistics, establishing precise and it is impossible or almost impossible to do without 4 out of 10 under-35s hold this view. accurate trends for this effort rate over Norway 64 a car, a view commonly held in European countries time is almost impossible. However, when and the rest of the world alike. Netherlands 64 one considers the stagnation – or even the reversal – of income rises in recent times, Poland 216 The populations who are the most attached to their together with the increasing amount of technology that goes into cars, electric Portugal 141 vehicle(s) can be found in the Netherlands, Austria, vehicles in particular, it is not difficult United Belgium and South Africa. The Brazilians, Japanese Kingdom 96 to imagine how tough these rates are and Norwegians are the least likely to feel this way. becoming. Turkey 445 In France, the figure is consistent with the average, In Europe alone, car prices have risen South Africa 590 with 72% of respondents being unable to imagine 72% of motorists cannot a car-free existence (Fig. 10). twice as fast as household incomes, and that was before the 2020-2022 price shock Japan 79 see themselves living triggered by the pandemic and its impact China 293 As one might intuitively assume, residents of rural without a car. in terms of restricting supplies. When the areas are significantly more likely to be car friendly. effort required becomes too great, people United States 65 77% cannot imagine living without a car, compared give up on the idea. When will breaking Mexico 296 with only 70% of urban dwellers. The highest point be reached? Brazil 353 proportion can be found in the Netherlands, while Turkey and Mexico boast the lowest. Source: Statista. * Effort rate for new passenger vehicles: ratio between the average price of a car in 2021 and the annual net income per capita in 2019. 18 19
CARS: WHATEVER IT TAKES? 2023 Fig. 10 Fig. 11 PEOPLE LOVE CARS Would you be willing to never own a car again? JUST AS THEY ARE When you last bought a vehicle, did you forego Share of respondents who have at least one car. In %. certain features and characteristics in order So we have seen that cars are considered 8% 8% to reduce its purchase price? Yes, definitely Yes, probably No, probably not No, definitely not indispensable, but this is even truer in their Share of respondents who have at least one car EUROPE 20% 18-COUNTRY 20% AVERAGE 37% AVERAGE 39% current guises. In this sense, whether it be in and who answered “No”. In %. 35% 33% terms of equipment, on-board technology or EUROPE 18-COUNTRY innovation, automakers have done an excellent AVERAGE 59% AVERAGE 57% 3 6 6 7 8 7 7 7 7 9 6 7 9 job of convincing a majority of motorists not to 11 10 12 11 14 Germany 64 15 abandon the advances made. Indeed, 6 out of 10 15 15 18 19 15 20 respondents chose not to forego certain items of Austria 67 20 26 25 14 17 24 equipment or features when they bought their 24 29 17 24 27 Belgium 60 vehicle, for the sake of paying less. There are significant geographical disparities, however, with Spain 55 37 the least economically developed countries proving France 58 37 34 less intransigent. In Brazil, Turkey, South Africa, but 35 30 31 42 also Portugal, only 4 out of 10 motorists chose not Italy 50 45 43 44 29 44 38 to forego these features, whereas in Austria, the 38 45 Norway 58 44 40 Netherlands, Japan and Poland, the figure is close 48 Netherlands 67 to 7 out of 10 (Fig. 11). Poland 66 Only a few percentage points separate buyers of Portugal 39 43 45 42 new and used vehicles, with 55% of the former 38 41 40 36 United 30 30 31 34 30 choosing not to give up these features, compared Kingdom 65 29 28 23 24 24 with 59% of the latter. It is obviously a stretch to ask 17 Turkey 43 a used-car dealer to remove an optional extra so as to lower the price. However, this is easier to do in South Africa 45 the case of a new car, before the purchase order has Japan 66 been signed. China 56 Germany Austria Belgium Spain France Italy Norway Netherlands Poland Portugal United Kingdom Turkey South Africa Japan China United States Mexico Brazil United States 63 Source: L’Observatoire Cetelem de l’Automobile 2023. Mexico 54 Brazil 40 Source: L’Observatoire Cetelem de l’Automobile 2023. 20 21
CARS: WHATEVER IT TAKES? 2023 Using your car: Fig. 12 If we look purely at the monetary data, automobile- With respect to the finances at your disposal, would related expenses are the highest in the USA, Austria you say that the overall cost of owning this vehicle and Norway, at nearly €2,000 per year (Fig. 13). is...? (Taking into account the purchase price, instalment the costs add up payments, upkeep, fuel, parking costs, road tolls, etc.) However, if we take into account net annual Share of respondents who have at least one car and income per capita, the cost burden of using a car who consider the cost to be “High”. In %. (fuel, upkeep and insurance) looks very different. EUROPE AVERAGE 57% 18-COUNTRY AVERAGE 57% Americans spend the smallest proportion of their earnings on their vehicle (6.4% of their total Germany 47 annual budget). The figure is twice as high for their Austria 54 neighbours in Mexico (13.3%). In France, motorists While consumers may consider the price of vehicles spend 7.7% of their annual budget on their vehicle. Belgium 66 to be relatively reasonable, the same cannot be said for their running costs. In addition, there are Spain 61 AN EVER GREATER FINANCIAL BURDEN marked differences from one type of expense Not only are cars expensive to run nowadays, but France 62 to the next. these costs continue to rise. More than 8 out of Italy 55 10 respondents believe this to be the case, with Norway 56 only a tiny minority being of the view that running costs have fallen. In all the countries surveyed, the Netherlands 48 Expensive overall majority of respondents feel that the cost of using Poland 63 a car is on the up (Fig. 14). Not surprisingly, given the economic circumstances they face, the Turks Portugal 52 are very much of this opinion (95%). Almost as United Kingdom 55 many South Africans agree. One has to go to Asia, A SIZEABLE COST BURDEN Turkey 83 specifically Japan and China, to find motorists who A majority of motorists are adamant that the are less scathing in comparison, with just under overall cost of owning a vehicle is high relative South Africa 62 7 out of 10 respondents stating that motoring to the finances at their disposal. 6 out of 10 are Japan 60 costs have increased. of this opinion. This is a minority position in China 35 only three countries, with the Chinese being the least likely to complain about the high cost of United States 47 motoring. Conversely, the Turks, for the reasons Mexico 52 mentioned previously, as well as the Brazilians, are overwhelmingly likely to decry the sizeable budget Brazil 75 required (Fig. 12). Source: L’Observatoire Cetelem de l’Automobile 2023. 22 23
CARS: WHATEVER IT TAKES? 2023 Fig. 13 Fig. 14 Breakdown of the annual cost of using a vehicle by type of expense The main costs involved in using a car are fuel, upkeep, insurance and parking. Share of respondents who have at least one car. In €. In recent years, would you say that your vehicle’s running costs...? Share of respondents who have at least one car. In %. Fuel Upkeep and repairs Insurance €1,692 €1,598 Have fallen Have remained stable Have risen 3% 3% EUROPE 18-COUNTRY EUROPE 18-COUNTRY AVERAGE €553 AVERAGE €583 AVERAGE 14% AVERAGE 15% €572 €572 83% 82% 2 2 1 2 1 1 1 2 2 3 3 3 3 5 4 3 6 6 4 10 8 7 12 12 12 11 12 17 14 13 18 18 20 23 28 30 1,810 1,979 1,901 1,981 1,581 1,835 1,698 1,745 1,373 1,736 1,619 1,103 1,488 95 1,262 1,235 89 91 91 86 87 86 86 86 1,452 83 84 79 81 79 1,447 74 726 1,341 71 68 702 65 757 575 650 623 717 546 901 592 468 480 529 588 535 469 954 326 345 770 848 704 618 726 528 579 557 520 615 429 410 486 433 281 337 304 Germany Austria Belgium Spain France Italy Norway Netherlands Poland Portugal United Kingdom Turkey South Africa Japan China United States Mexico Brazil Germany Austria Belgium Spain France Italy Norway Netherlands Poland Portugal United Kingdom Turkey South Africa Japan China United States Mexico Brazil Source: L’Observatoire Cetelem de l’Automobile 2023. Source: L’Observatoire Cetelem de l’Automobile 2023. 24 25
CARS: WHATEVER IT TAKES? 2023 Fig. 16 DEPRECIATION: A HIDDEN COST Have you ever avoided travelling because of COSTS PUT PEOPLE OFF OF MOTORING transport costs, regardless of the means of Broadly speaking, cost is an issue that Another way of considering vehicle transport in question? affects mobility as a whole. Nearly 6 out Share of respondents who answered “Yes”. budgets is to include not only running of 10 people say they have previously To all respondents. In %. costs but also the losses incurred. With decided not to travel because of the this in mind, vehicle depreciation emerges TO SELL cost involved, regardless of the mode of EUROPE 18-COUNTRY AVERAGE 55% AVERAGE 58% as the number one budget killer in transport used (Fig. 16). In those countries European countries, depriving motorists with the least resilient economies, such as Germany 45 of financial leeway when buying their Turkey and South Africa, this proportion next car. Depreciation is particularly high Austria 45 rises to almost 8 out of 10. The figure for on the latest electric models, given the France is close to the overall average. greater rate of obsolescence of innovative Belgium 52 high-tech products (Fig. 15). Spain 57 France 62 Italy 55 Norway 64 Netherlands 45 Fig. 15 / Context Poland 53 Estimated breakdown of vehicle running costs Portugal 70 In %. United 58 Nearly 6 out of 10 Kingdom Interest Repairs, maintenance, tyres Insurance Fuel/energy Road tax Depreciation Turkey 79 people say they have South Africa 79 DIESEL 6 12 10 17 6 49 previously decided PETROL 6 11 10 23 5 45 Japan 33 not to travel because China 44 of the cost involved. HYBRID United States 61 VEHICLES 7 11 10 17 4 51 Mexico 68 ELECTRIC VEHICLES 7 12 11 10 3 57 Brazil 77 Source: LeasePlan 2021. Source: L’Observatoire Cetelem de l’Automobile 2023. 26 27
CARS: WHATEVER IT TAKES? 2023 Insurance and upkeep, two costs Fig. 18 NO INSURANCE AGAINST HIGH COSTS Insurance is the number one item of expenditure How much does your car insurance cost you per year? that are still deemed reasonable examined by L’Observatoire Cetelem de l’Automobile Share of respondents who have at least one car. In €. 2023. Its cost is considered high by almost 1 in 2 respondents (Fig. 17). At the risk of repetition – and EUROPE 18-COUNTRY AVERAGE €572 AVERAGE €572 this will not be the last time it occurs – the Turks are the most likely to describe this cost as excessive Germany 528 (71%), while the Germans are the least likely to do Fig. 17 Austria 954 so (38%). The geographical breakdown of views on Do you think the price of car insurance is...? 8% 9% this topic reveals that a majority of respondents in Belgium 704 Share of respondents who have at least one car. In %. EUROPE 45% 18-COUNTRY 42% AVERAGE 36% AVERAGE 36% several European countries believe that insurance 11% 13% Spain 429 Very reasonable Quite reasonable Quite high Very high is too expensive. This is notably the case in Belgium 2 and Norway. Just over 1 in 2 French respondents France 579 4 are also of this belief. 5 5 6 8 7 Italy 557 10 8 11 10 9 9 10 11 15 16 13 27 And yet, there is no real correlation between Norway 770 the cost of insurance and the sense that one is Netherlands 618 39 48 43 41 31 paying too much for it. At almost €1,000 per year, 39 31 43 43 34 50 46 Poland 281 52 50 49 45 Austrians incur the highest insurance costs, but 54 they are among the least likely to consider the price Portugal 337 42 excessive. At the other end of the scale, the Poles United 520 are among the most critical, despite paying the Kingdom 36 least for their policies. Once again, the French pay Turkey 304 41 37 41 42 34 close to the average, with an annual spend of €579 39 34 38 38 30 South Africa 726 30 33 27 34 38 (Fig. 18). 30 Japan 410 29 22 The Austrians incur the second highest insurance China 615 15 17 14 16 14 11 10 11 11 11 12 11 9 costs relative to their income per capita, just ahead 8 6 5 United States 848 of the Mexicans (2.5% and 2.8%, respectively). The Poles bring up the rear in this ranking (1.1%). Mexico 486 Germany Austria Belgium Spain France Italy Norway Netherlands Poland Portugal United Kingdom Turkey South Africa Japan China United States Mexico Brazil Brazil 433 Source: L’Observatoire Cetelem de l’Automobile 2023. Source: L’Observatoire Cetelem de l’Automobile 2023. 28 29
CARS: WHATEVER IT TAKES? 2023 Fig. 19 / Context Judging by the cost of vehicle repairs and the a distance by the Norwegians and the Austrians. IS THE INCREASE IN CAR Change in the average annual car insurance proportion of average income that they represent, Once more, the Poles spend the least of all the INSURANCE PRICES SET premium in France, per driver the Japanese seem to have good reason to be populations surveyed (€326), but the Turks are only TO BE REVERSED? In €. annoyed. With a mean spend of €901 per year, they just ahead of them in terms of expenditure (Fig. 21). Having risen for six years in a row, car 650 are well ahead of every other country, followed at insurance premiums fell slightly in France 641 in 2021, saving motorists an average of €9 632 compared with the previous year (Fig. 19). 615 Fig. 20 While the constant rise observed since 2016 was caused primarily by the soaring Do you consider that the amount you spend on servicing and repairing your vehicle each year is...? price of spare parts and the passing on of 595 Share of respondents who have at least one car. In %. 12% 11% additional costs relating to other types of EUROPE 47% 18-COUNTRY 45% insurance (direct or indirect consequences 580 AVERAGE 31% AVERAGE 32% Very reasonable Quite reasonable Quite high Very high 10% 12% of natural disasters, Covid, etc.), the 566 reason for the fall recorded in 2021 is 2 3 altogether different. Indeed, the global 12 11 9 9 11 11 10 10 9 11 10 health crisis, the travel restrictions to 14 15 13 20 23 which it led and the widescale adoption 26 of remote working have contributed to 37 a significant reduction in traffic volumes 2015 2016 2017 2018 2019 2020 2021 37 and, therefore, in the number of insurance 45 43 44 47 47 46 43 53 49 claims and payouts. There has also been Source: lelynx.fr. 52 52 36 53 51 growing competitive pressure within the 47 car insurance sector, with the arrival 42 of new entrants who are cutting prices by applying new “pay as you drive” or REPAIRS: A LESSER EVIL 47 35 “pay how you drive” models, where rates When it comes to upkeep and repairs, the second 34 38 28 28 depend on the amount a car is used or the 34 34 34 32 biggest expense item for vehicle owners, the views 26 28 31 owner’s driving style. 24 32 20 28 of motorists are more measured, with just over 4 in 30 10 deeming their cost too high (Fig. 20). Once again, 16 16 18 10 12 10 11 11 10 13 10 9 9 9 9 the Turks top the list (72%), followed this time by 5 6 the Japanese, who are also up in arms about high prices. Meanwhile, the Americans and the Brits do not appear to suffer excessively from the financial Germany Austria Belgium Spain France Italy Norway Netherlands Poland Portugal United Kingdom Turkey South Africa Japan China United States Mexico Brazil outlay involved (30% and 34%). What of the French? They fall into line with the average, of course. Source: L’Observatoire Cetelem de l’Automobile 2023. 30 31
CARS: WHATEVER IT TAKES? 2023 Fig. 21 Fig. 22 / Context If we look at the repairs-to-income ratio, the Japanese sit in second place, with the Mexicans How much do you estimate that you spend on Spare parts price index in France (excluding VAT and on a like-for-like basis) taking the lead once again (2.7% and 3.1% servicing and repairing your vehicle each year? compared to the consumer price index Share of respondents who have at least one car. In €. 2015 = 100. respectively). And we find the same two countries at the foot of the ranking: Poland and the United States. Spare parts price index Consumer price index in Metropolitan France EUROPE 18-COUNTRY AVERAGE €553 AVERAGE €583 125 It should also be noted that spending on repairs 120 is very similar regardless of whether vehicles are Germany 592 bought new or used. New cars are usually booked 115 Austria 726 in for regular servicing at dealerships, which comes 110 at a cost, while second-hand vehicles tend to be Belgium 575 105 repaired more frequently, but at cheaper prices. Spain 535 100 France 546 95 Italy 468 90 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Norway 757 Source: INSEE, SRA. Netherlands 623 Poland 326 Portugal 469 SPARE PARTS PRICES SKYROCKET United 480 Kingdom It isn’t just cars that are becoming more singled out as a cause of inflated prices for Turkey 345 expensive every year: spare parts prices are consumers. The liberalisation of the car parts rising too. Several coinciding factors have market by the “Climate and Resilience” Act of South Africa 650 contributed to an increase of almost 30% 22 August 2021 could help reverse the trend over the last decade (Fig. 22). (in France). However, progress looks set to Japan 901 Vehicles are becoming better equipped be slow and gradual, since the legislation China 717 and parts are increasingly sophisticated will only cover the automotive glass market and complex to produce. Recent shortages as of January 2023. In the meantime, to help United States 702 (affecting electronic chips in particular), lighten the bill, consumers can rely on local longer lead times and soaring raw material mechanics. Indeed, since 2017 the latter have Mexico 529 costs all explain the recent surge in prices. been required to provide an alternative quote Brazil 588 The monopoly enjoyed by automakers when based on the use of second-hand parts, which it comes to spare parts is also regularly are obviously less expensive. Source: L’Observatoire Cetelem de l’Automobile 2023. 32 33
CARS: WHATEVER IT TAKES? 2023 Fuelling PETROL, MY DEAR! While the cost of insurance and repairs is a matter much, given that 49% of Chinese motorists agree with the suggestion. In every other country, it is the problem for some debate, the same cannot be said for fuel. unquestionable, especially in Turkey where 9 out of The findings are clear: 7 out of 10 motorists feel 10 people believe the cost is high. The Japanese and that their fuel budget is high (Fig. 23). Mexicans are a little less vehement, although they China is the only country surveyed in which this are not as measured as the Chinese. is not a majority-held view, although not by Fig. 23 Do you feel that your vehicle’s monthly fuel budget is? 7% 7% Share of respondents who have at least one car. In %. EUROPE 20% 18-COUNTRY 22% AVERAGE 34% AVERAGE 34% Fig. 24 / Context 39% 37% Price of a litre of petrol at the pump Very reasonable Quite reasonable Quite high Very high 1 In $. WORLD $0.98 5 4 4 5 6 5 6 6 6 6 AVERAGE $1.35 7 9 11 9 7 7 2016 August 2022 11 14 19 17 18 19 20 21 20 16 1.39 1.54 26 25 23 20 Germany Portugal 22 29 1.73 1.77 34 30 21 40 Austria 1.20 United 1.46 35 1.75 Kingdom 2.01 30 34 28 31 31 40 31 29 Belgium 1.43 Turkey 1.42 34 1.84 1.18 36 36 41 23 36 1.36 1.22 Spain South Africa 1.78 1.48 45 France 1.39 Japan 1.06 58 42 1.72 1.20 49 47 46 46 42 43 42 42 33 37 33 36 37 Italy 1.61 China 0.96 28 28 1.75 1.32 15 7 Norway 1.78 United States 0.71 2.31 1.09 Netherlands 1.68 Mexico 0.73 2.05 1.18 Germany Austria Belgium Spain France Italy Norway Netherlands Poland Portugal United Kingdom Turkey South Africa Japan China United States Mexico Brazil 1.07 1.02 Poland Brazil 1.39 1.04 Source: L’Observatoire Cetelem de l’Automobile 2023. Source: TheGlobalEconomy. 34 35
CARS: WHATEVER IT TAKES? 2023 SPECTACULAR PRICE RISES Fig. 25 Motorists in Japan are relatively unmoved by the A quick glance at diesel prices at the pump in How much does refuelling your car cost you impact of high fuel prices and it is they who report PRESSURE ON CRUDE OIL PRICES several of the countries surveyed goes some way per month? the lowest estimated monthly expenditure: €92. On 24 February 2022, the day on which Average value. Share of respondents who have Vladimir Putin announced the launch of a to explaining the feelings of motorists (Fig. 24). at least one car. In €. In all other countries the figure exceeds €100, in “special operation” in Ukraine, the price of In Japan, price rises have indeed remained relatively some cases by a significant margin. In Belgium and a barrel of crude oil exceeded $100 for the contained. Conversely, in the United States and EUROPE 18-COUNTRY the United States, the leading pair in this particular AVERAGE €141 AVERAGE €133 first time in 7 years. After several years of Mexico prices have risen by more than 50%, causing ranking, spending on fuel totals €165 a month. prices staying below $80, we appear to be consumers in those countries to forget how low In most EU countries, Portugal and Poland aside, entering a highly uncertain period. Today’s Germany 153 they still are compared to other countries. monthly fuel budgets are fairly similar. geopolitical and economic cocktail could Austria 151 hold many more surprises (Fig. 26). This increase has had a direct impact on the Belgium 165 distances motorists drive. In France, an extra euro Spain 145 on the price of a litre of diesel prompts motorists to travel 1,000 fewer kilometres per year in the short France 145 Fig. 26 / Context term. Over the long term, such a price increase Change in the price of a barrel of Brent crude oil Italy 135 reduces the average annual distance travelled In $ per barrel. by 7,500 kilometres. Norway 158 120 Netherlands 141 THE IMPACT OF PRICES AT THE PUMP VARIES Poland 112 100 In concrete terms, the average monthly fuel Portugal 121 budget of motorists in the 18 countries covered 80 United 124 by L’Observatoire Cetelem de l’Automobile 2023 is Kingdom €133. Although prices have skyrocketed everywhere, Turkey 121 60 there are significant differences between the South Africa 132 countries, and not always where one would expect 40 them (Fig. 25). Japan 92 20 China 114 United States 165 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022* Mexico 105 Brazil 103 Source: EIA. Source: L’Observatoire Cetelem de l’Automobile 2023. * Forecast. 36 37
CARS: WHATEVER IT TAKES? 2023 Cutting Taking personal Fig. 27 country fuel costs have caught people’s attention Do you take measures to reduce the cost of using far more than any other factor. And, for once, your vehicle? action Europe is where the desire to limit fuel spending Share of respondents who have at least one car and costs, who answered “Yes”. In %. is the most powerful. An analysis of every other cost item reveals local variations. In France, reducing EUROPE AVERAGE 57% 18-COUNTRY AVERAGE 60% the amount spent on motorway tolls, a French speciality, is the second-highest priority. MOTORISTS ARE TAKING MEASURES at any cost Germany 50 In Belgium, Brazil and the Netherlands, spending Faced with an economic situation that is looking less on parking comes second. In Italy and Japan, ever bleaker, motorists are far from complacent. Austria 49 the concern is more with bringing down the cost They believe that the cost of running their vehicle Belgium 58 of insurance. is too high. 6 out of 10 are adopting measures to Spain 59 limit these costs (Fig. 27). This reaction has been PRIORITY NO. 1: particularly strong in the four countries with the France 68 DRIVE LESS TO CONSUME LESS weakest economies, with three-quarters of South To lower their fuel bill, motorists are willing to Italy 57 Africans, Brazilians and Mexicans taking specific consider several options, the first being the most action, and an even higher proportion of Turks. Norway 58 obvious: driving less. 6 out of 10 people have Of the remaining countries, France is home to the Netherlands 49 embraced this measure. The consensus is broadly largest majority of individuals who are keen to act in favour of this approach, the exceptions being Poland 61 (7 out of 10). The central focus placed on fuel prices Japan and China, where 1 in 3 and 1 in 5 motorists, during the lengthy electoral period that preceded Portugal 64 respectively, are willing to consider it. Along with this survey may well have had something to do United the South Africans, the French are the most likely Kingdom 47 with this result. In contrast, the Japanese, British, to reduce the mileage they cover (69% and 65% Austrians and Dutch show less gusto. Turkey 78 respectively). South Africa 74 AN ASSAULT ON FUEL CONSUMPTION So motorists are keen to drive less, but 46% of Take measures? Sure, but how? One need not be Japan 44 respondents are also interested in comparing psychic to guess where people are concentrating China 58 fuel prices and searching for the cheapest their efforts. The answer is obvious from the service stations. United States 51 previous pages. According to 65% of respondents, the main priority is to reduce fuel expenses (Fig. 28). Mexico 74 The Japanese are the one exception. As we have Brazil 74 seen, they do not appear to be suffering unduly from prices at the pump, while in every other Source: L’Observatoire Cetelem de l’Automobile 2023. 38 39
CARS: WHATEVER IT TAKES? 2023 Fig. 28 Paradoxically, this means that they are driving city dwellers. When it comes to searching for cheaper Which types of expense are you most interested in reducing? further and therefore burning more fuel to do so. fuel and driving in a way that is more economical, Share of respondents who have at least one car and have taken measures to reduce the cost of using their vehicle. This option is much less appealing to the Turks the gap is smaller (4% and 6%, respectively). and South Africans. Parking fees Fuel Upkeep Toll roads (diesel, petrol, etc.) and maintenance Insurance (motorways) (renting a space, Looking at the ranking of measures people are parking in town, etc.) An almost identical proportion of motorists (44%) prepared to take, switching to other modes of transport Germany 63% 24% 24% 13% 23% are willing to change their driving style. This is another fairly popular option (36%), particularly Austria 75% 26% 24% 10% 15% means driving more smoothly and more slowly. among urban dwellers (39% vs. 27% of country Norwegians, many of whom use electric vehicles, dwellers), but it is clear most of all that certain eco- Belgium 71% 15% 17% 20% 35% are not particularly inclined to take their foot off friendly solutions are of little interest to motorists. Spain 68% 27% 23% 18% 26% the accelerator or drive less aggressively (24%). France 67% 18% 12% 37% 30% Choosing a more fuel-efficient vehicle appeals to Italy 68% 26% 30% 19% 24% On these three points, the difference between residents only 1 in 5 people and ridesharing to only 1 in 10. of rural and urban areas is significant. 61% of rural However, the figure for the latter reaches 1 in 5 Norway 67% 23% 15% 22% 22% inhabitants plan to drive less, compared with 51% of in Turkey, South Africa and Mexico (Fig. 29). Netherlands 68% 15% 18% 12% 34% Poland 71% 24% 21% 20% 22% Fig. 29 Portugal 61% 27% 20% 28% 24% What measures have you taken to reduce fuel costs? United Share of respondents who have at least one car and have taken measures to reduce the cost of using their vehicle. 61% 23% 20% 12% 24% Select one or more answers. In %. Kingdom Turkey 65% 40% 19% 21% 22% Europe average 18-country average South Africa 66% 39% 23% 17% 19% Reduced the amount 58 Avoided using fuel-hungry 26 Japan 49% 25% 32% 20% 24% of driving you do 54 features, such as air conditioning 30 Compared fuel prices and Opted for a more fuel-efficient 20 China 62% 44% 26% 17% 30% searched for the cheapest service 47 vehicle 23 stations, so as to fill up in the 46 United States 63% 34% 25% 16% 16% right place and at the right time 11 Used ride sharing 12 Mexico 59% 38% 18% 20% 28% Adjusted your driving style: driving more slowly, driving more 45 Converted your car 6 Brazil 58% 29% 19% 20% 43% smoothly, coasting, avoiding 44 to ethanol (FlexFuel unit) traffic jams or electric (retrofit) 8 EUROPE AVERAGE 67% 23% 20% 20% 26% Used other modes of transport 32 You have taken no measures 3 18-COUNTRY AVERAGE 65% 28% 21% 20% 26% when possible 36 2 Other 2 Source: L’Observatoire Cetelem de l’Automobile 2023. 2 Source: L’Observatoire Cetelem de l’Automobile 2023. 40 41
CARS: WHATEVER IT TAKES? 2023 Fig. 31 REPAIRING YOUR OWN CAR The two Iberian nations are where dealer networks FEWER SAVINGS ARE EXPECTED IS ALWAYS A WINNER have the most to worry about. DIY maintenance ON THE INSURANCE SIDE OF THINGS What measures have you taken to reduce Focusing on upkeep and maintenance is another is also popular, with 3 in 10 motorists stating that The third stage of the cost reduction rocket, i.e., car insurance costs? Share of respondents who have at least one car and possible avenue for cost-cutting motorists (Fig. 30). they are prepared to get their hands dirty. The spending less by making savings on insurance, is a have taken measures to reduce the cost of using Car dealership networks bear the biggest brunt of highest proportions of home mechanics are to be somewhat trickier proposition (Fig. 31). It is worth their vehicle. this self-sufficient approach. Of those motorists found in China and the United States. A quarter noting first of all that 24% of those who seek to cut Select one or more answers. In %. who seek to lower costs, almost 4 in 10 opt to have of those surveyed put their faith in an even more costs have taken no steps in this direction, with their vehicle serviced and repaired by independent radical solution: reducing the amount of vehicle Europeans being the most reluctant to do so. 6% Europe average 18-country average mechanics. servicing and maintenance performed. More than have even decided to drive uninsured. Compared different 4 out of 10 Turks are tempted by the idea. insurers to find 31 the best deal 32 The main way of saving money on insurance is to compare deals (32%), something that has been Regularly renegotiated the 20 price of your insurance 20 embraced in a very uneven way. Indeed, 47% of Fig. 30 Changed your insurance drivers in Turkey choose to do so, compared with policy as soon as you found 18 What alternatives have you chosen to reduce the cost of upkeep and maintenance? 19 just 19% in the Netherlands. Purely for financial a better deal Share of respondents who have at least one car and have taken measures to reduce the cost of using their vehicle. reasons, 17% have also decided to downgrade Opted for a third-party Select one or more answers. In %. policy rather than fully 20 their cover by going for a third-party policy. comprehensive insurance 17 Europe average 18-country average Parked your car in a secure, 15 Another route people go down is to regularly enclosed location 17 Had servicing and maintenance performed by an independent mechanic 37 switch insurers (19%), with the Chinese and the rather than at a dealership 40 Purchased tailored 10 British leading the way in this area. Also popular insurance (pay per mile, 12 Carried out servicing and maintenance yourself or had it done 27 for example) by someone you know 30 among some motorists is parking their car in a Increased your excess to secure location, which is the best way of avoiding reduce your insurance 11 Reduced your vehicle’s servicing and maintenance frequency 24 12 25 accidents (17%). Tailored insurance, including premium Had servicing and maintenance performed unofficially 14 policies linked to the mileage covered, appeals to Designated an individual with more experience or 10 (undeclared work) 16 12% of respondents. a no-claims bonus as the 11 main driver You have taken no measures 25 22 Driven without insurance 5 Source: L’Observatoire Cetelem de l’Automobile 2023. 6 You have taken no 27 measures 24 Source: L’Observatoire Cetelem de l’Automobile 2023. 42 43
CARS: WHATEVER IT TAKES? 2023 Action is GOVERNMENTS MUST ACT The main type of measure people would like expected from governments to take is financial, with respondents keen first and foremost to see fuel prices capped (Fig. 32). 1 in 2 motorists would like to see this carmakers and happen. Rural dwellers are the most likely to be in favour of such a policy, particularly in France, where 67% are of this view. The Purchasing Power governments Act passed by the French parliament on 4 August this year includes a measure that grants a discount on the price of fuel, having seemingly taken these demands into account. By contrast, motorists in both China and Japan are less fervent in their desire While motorists are doing what they can to lower to see fuel prices limited (36%). Fig. 32 the cost of using their vehicle, they also expect governments and brands to offer their support Again on the financial front, close to 4 out of 10 In your opinion, which government measures would be the most effective in reducing the cost of buying on this issue. motorists would like to see the government lower and using a car? To all respondents. Select up to two answers. In %. the various taxes car users are charged. The Poles are the least likely to hold this view, contrary to Europe average 18-country average the Brazilians. Cap fuel prices 54 Two other measures achieve almost equal levels 52 of popularity: just over 1 in 5 respondents would Reduce the taxes motorists are charged 37 38 like public transport to be developed further 1 in 2 motorists would like and support to be offered to those who purchase Develop public transport 23 23 governments to cap electric vehicles. Both solutions are favoured 21 fuel prices. by urban dwellers. When it comes to improving Introduce or increase grants for the purchase of electric vehicles 21 public transport, the opinions of the Chinese and Offer low-cost leasing deals for low-income households 14 Americans are at odds (36% vs. 15%). As regards 16 support for those who switch to an electric vehicle, Lower speed limits to reduce fuel consumption 11 Spain and Germany are at opposite ends of the 11 scale (31% and 14%). 4 Other 4 Source: L’Observatoire Cetelem de l’Automobile 2023. 44 45
CARS: WHATEVER IT TAKES? 2023 ACCORDING TO 7 OUT OF 10 MOTORISTS CARMAKERS NEED TO PUT THEIR HANDS and 53%). The former is a nation of electric vehicle THE ESSENTIAL TO THE WHEEL users, the latter a land of cheap fuel. If motorists expect a great deal from governments, they also believe that brands should not simply sit Another approach, which aims to reduce fuel back and watch, buoyed by their strong results (more consumption via a different route, is to design buying a car is possible but requires financial sacrifices on this later). It is clear that they too will need to lighter vehicles (32%). This is an avenue favoured 6 OUT OF 10 MORE THAN 8 OUT OF place an emphasis on the fuel factor (Fig. 33). in Germany, which is renowned for its large PEOPLE 10 MOTORISTS 64% of those surveyed are of the view that saloon cars. manufacturers should primarily be designing more fuel-efficient vehicles. This is an opinion shared Limiting distribution costs and reducing the by almost twice as many people as the next quantity of equipment fitted to vehicles receives item in the list, further evidence of the immense far fewer positive responses, another sign that have decided not to believe that running importance that motorists place on this issue. Not manufacturers should really be directing their travel in the past costs are increasing surprisingly, the Norwegians and Americans are energy towards improving fuel economy, which has because of the cost the least likely to back this kind of measure (56% a clear day-to-day impact. of using their car 7 OUT OF 10 1 IN MOTORISTS 2 PEOPLE Fig. 33 In your opinion, which measures by carmakers would be the most effective in reducing the cost of buying and using a car? To all respondents. Select up to two answers. In %. believe their fuel believe car insurance Europe average 18-country average budget is too high is expensive MORE THAN 1 IN Developing more fuel-efficient vehicles 63 6 OUT OF 10 2 PEOPLE 64 3 IN 4 Developing smaller and lighter vehicles 33 32 MOTORISTS MOTORISTS Limiting distribution costs, e.g., by selling online 22 25 18 want Offering less well-equipped vehicles 18 governments 9 want carmakers to produce to take action Other 8 could not live more economical vehicles on the price Source: L’Observatoire Cetelem de l’Automobile 2023. without their car of fuel 46 47
CARS: WHATEVER IT TAKES? 2023 OTHER MOBILITY 2 SOLUTIONS, USED IN A COMPLE- MENTARY WAY Going back in history, especially pre-history, mankind was nomadic. Mobility was essential to both the survival and security of humans. Since the early 20th century, this mobility has been embodied by the automobile. Every day and during the weekends and holidays, cars are a central part of people’s journeys. However, under the direct influence of structural economic, environmental and societal changes, of which climate change is one of the most striking examples, behaviours and practices are evolving. The automobile’s influence is being eroded. The development of public transport and the emergence of soft mobility, particularly in towns and cities, are increasingly providing natural and complementary alternatives to cars, which are seeing their central role in society diminish. 48 49
CARS: WHATEVER IT TAKES? 2023 It’s hard to live MORE AT HOME ON RURAL ROADS the smaller nations in terms of size, as illustrated THAN ON CITY STREETS by the fact that 68% of Dutch and 60% of Belgian The types of roads motorists use reveals a clearer drivers use their vehicle in both rural and urban a carless life geographical divide. Indeed, the Europeans tend environments (Fig. 35). The countries where people to use their cars equally in urban and rural drive their cars primarily, not to say exclusively, environments, while the rest of the world use their in urban areas tend to be those containing vast vehicles mainly in towns and cities. If we consider expanses of land and numerous megacities, such the world as a whole, 1 in 2 people say they use as Brazil and China (88% and 80%). their vehicle in both urban and rural settings. The countries where car use is more varied tend to be Fig. 34 At the heart Would you say that you use your car...? Share of respondents who have at least one car. Share who answered “Regularly” or “More often”. Give one answer for each type of journey. of people’s Europe average 18-country average 89% 90% journeys… 78% 79% daily journeys, including commuting. In these 75% 71% situations, three-quarters of people use their car. It is worth noting that this score is down by 5 points compared to last year, presumably due to UNBRIDLED PRACTICALITY the impact of the global health crisis, which led In every imaginable day-to-day situation, cars to fewer people travelling to their workplace. unquestionably remain the ideal mode of transport. This is especially true when shopping or enjoying With such high scores, it makes sense that the sporting activities (Fig. 34). 9 out of 10 respondents differences between countries are smaller. The say they use their vehicle often or very often in Austrians, the French and the British are slightly these cases. When they go away for the weekend less likely than average to use their cars on a daily For daily journeys, For personal reasons and leisure purposes For occasional journeys, including commuting to work (shopping, sporting activities, etc.) such as weekends away or holidays or on holiday, 8 out of 10 choose to go by car. basis (63%, 64% and 64%), unlike the Chinese, the This proportion drops slightly when it comes to Mexicans and the South Africans (90%). Source: L’Observatoire Cetelem de l’Automobile 2023. 50 51
CARS: WHATEVER IT TAKES? 2023 Fig. 35 Fig. 36 THE BIGGER THE COUNTRY, What do you use your vehicle for? How many kilometres do you estimate THE MORE PEOPLE DRIVE Share of respondents who have at least one car. One answer only. that you cover in your vehicle per year? One measure of automobility is the distance Share of respondents who have at least one car. In km. travelled. According to the data collected, motorists Mostly or exclusively in rural areas 11% 9% EUROPE 18-COUNTRY drive an average of 13,600 km a year in the AVERAGE 13,150 km AVERAGE 13,600 km EUROPE 18-COUNTRY Both in an urban environment and in more rural areas 51% 42% Mostly or exclusively in urban areas AVERAGE 38% AVERAGE 49% countries surveyed (Fig. 36). And once again, there is a correlation between the size of the country 1 2 2 1 Germany 13,600 and the number of kilometres driven. The top four 7 5 8 5 8 7 7 Austria 13,700 nations in this particular ranking are Brazil, Turkey, 13 10 12 15 17 China and Mexico, the 5th, 37th, 4th and 14th largest 19 18 Belgium 13,350 28 26 countries in the world, respectively. Italy sits in 31 32 Spain 13,350 5th place, pulling off the “feat” of surpassing the 34 34 36 United States, the world’s 3rd largest country in 44 France 12,400 51 terms of surface area. It is interesting to note that 48 48 Italy 14,150 France lies at the bottom of this ranking, with 53 an average of 12,400 km travelled per year. 49 47 68 Norway 12,450 60 Netherlands 12,900 56 88 Poland 12,850 80 73 68 66 Portugal 13,250 58 59 57 United 51 Kingdom 12,150 45 44 42 Turkey 16,350 The average distance covered 34 25 34 34 24 by motorists in Europe is South Africa 14,550 16 13,150 km per year. Japan 11,750 China 14,700 United States 13,700 Germany Austria Belgium Spain France Italy Norway Netherlands Poland Portugal United Kingdom Turkey South Africa Japan China United States Mexico Brazil Mexico 15,050 Brazil 16,500 Source: L’Observatoire Cetelem de l’Automobile 2023. Source: L’Observatoire Cetelem de l’Automobile 2022. 52 53
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