Up to 67% of Customers Would Switch Car Brands if Faced With Poor Digital Connectivity, Manufacturers Fight for Supremacy

Almost 67% of Chinese consumers would be prepared to switch car brands if the vehicle’s digital connectivity was not up to scratch. The topic of connectivity is also growing in importance in Europe and the USA. As a new infographic from Block-Builders.de shows, German carmakers currently appear to be leading the way, but the tide could turn quickly.

The Chinese car market is of utmost importance for car manufacturers, with the Chinese market considered essential to success. This could quickly come under threat if manufacturers fail to keep up with the digital networking of vehicles.

As the infographic shows, German manufacturers were still ahead in terms of connected cars, at least in 2019. Volkswagen came first in a ranking by the Center of Automotive Management with an index value of 103, followed by Daimler (64) and BMW (54). However, much has changed since then, with companies such as Apple entering the automotive market, who already have a lot of experience with the networking of services and devices.

Megatrend: Digital Connectivity

Digitally connected vehicles can be integrated with other services and devices, including laptops, smartphones, other cars and homes. According to forecasts from “Strategy”, this area’s market share is set to increase considerably over the next few years. Whereas in Europe this was worth the equivalent of $2.5 billion US in 2020, this figure is expected to rise to $8.2 billion by 2025. The relative increase in China, by contrast, will be even greater: by 2025, it will amount to 553%.

According to the survey, 97% of cars in the USA will be digitally connected by 2035, compared to 93% in Europe. For China, experts predict a penetration of 72%, which nevertheless reveals enormous potential given the size of the market.

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