Simon-Kucher study reveals what’s really driving car buyers in 2025
Trust, value, and relevance take center stage for car buyers as the automotive industry undergoes profound changes. That is according to a report from Simon-Kucher, which surveyed nearly 7,000 consumers in 20 markets.
In this 2025 edition of the firm’s annual Global Automotive Study, the results suggest a decisive shift in how customers evaluate, select, and stay loyal to brands. It turns out that consumers are more concerned with relevance and precision than with reach and heritage.
The range of choices is already large and growing, while consumers are also increasingly skeptical of brand promises. One conclusion from the results: OEMs should emphasize value, experience, and trust above all else.
“Today’s car buyers are not just better informed, they’re firmly in the driver’s seat. From price sensitivity to EV expectations, consumers now demand transparency, trust, and tailored experiences. Automakers must rethink one-size-fits-all strategies and deliver relevance across the full purchase journey,” said Martin Gehring, global head of automotive at Simon-Kucher.
Customer confidence and pricing
Global consumer confidence in the automotive sector is shifting, with 45% of consumers reporting a decrease in their purchasing power. In response, 42% plan to hold on to their current vehicles longer. Despite this caution, excitement for new models remains high, with 78% of consumers expressing enthusiasm.
Price has emerged as the most critical factor in a car-buying decision across all regions, followed closely by reliability and brand reputation. The report found that price sensitivity is 15% higher in Western markets compared to some Asian countries.
The EV market
The electric vehicle (EV) market features strong loyalty but a more complex growth trajectory. 96% of current EV owners say they would buy an EV again, a notable increase from 92% in 2024. Overall, two-thirds of all global buyers believe EVs are the future. However, growth has stabilized, requiring a more nuanced, segment-specific approach from manufacturers.
The market reputation of Tesla – undoubtedly a market leader – is seriously polarizing. While 69% of EV-curious consumers include Tesla on their shortlist, almost a third said they would not consider buying one. This reluctance is primarily due to brand identity and controversies around founder Elon Musk, rather than any issues with product quality.
Geopolitical and technological shifts
The rise of Chinese car brands is notable, with 43% of consumers saying they would consider a purchase from a Chinese OEM, an increase of four percentage points from last year. This interest is particularly strong among Gen Z and millennials. However, there are still a lot of lingering concerns over quality, service, and safety.
The impact of tariffs is also on consumers’ minds, with 73% believing they raise prices for all buyers, not just imports. This perception is strongest in import-heavy markets like Spain and Mexico, while consumers in the U.S. and China are more likely to favor domestic brands.
Finally, while automation (AI) is viewed positively by 54% of consumers – especially for tasks like trade-in valuation and financing – the human element remains crucial. For example, 82% of buyers still prefer to finalize their purchase at a dealership.
Evolving loyalty and service models
Customer loyalty is being redefined by transparency and service: For example, 71% of customers see value in predictive maintenance for early issue detection. Globally, 64% favor bundled, pre-paid service plans, particularly in markets like Germany, the UK, and Japan. This trend suggests that consumers now prioritize long-term clarity and convenience over traditional service prestige.
“Our 2025 study confirms that transformation isn’t optional, it’s expected,” said Matthias Riemer, partner at Simon-Kucher.
“Buyers are loyal to outcomes, not slogans. Automakers who prioritize pricing transparency, segment-specific EV solutions, and data-backed customer experiences will secure long-term growth in a market where trust and relevance are everything.”
