Tuesday, September 30, 2014

The ‘connected car’ driving buyers’ choices

Do you drive a car with a tape player? No aux jack or bluetooth? You may be part of a dying breed – recent interviews and reports show that connectivity, of various types, is becoming more and more important to car buyers.

This probably won’t surprise you, but it is more important with younger drivers who are buying their first new car.

http://www.cnbc.com/id/102040768#.Driver-less cars may remain a few years off, but more and more car and tech companies are trying to turn automobiles into personal computers, complete with wireless connectivity and self-driving software.

The day is approaching when the reason you buy a particular vehicle will be driven largely by the connectivity that car offers.

That’s the conclusion of a new study by McKinsey, which looks into the growing importance of Internet connectivity in vehicles.

“Connectivity is increasingly important for the consumer buying a new vehicle,” said Hans-Werner Kaas, who conducted the study for McKinsey. “This is not just another feature, it’s really a primary factor.”

The auto companies know it.

Audi and General Motors are both aggressively promoting the fact a number of models in their lineups now feature 4G connectivity.

McKinsey found 65 percent of 18- to 34-year-olds surveyed considered connectivity an important factor to consider when buying a vehicle. That compares with 43 percent for those ages 35-54 years old, and just 18 percent for those 55-74 years old.

Perhaps most interesting for automakers is what McKinsey found when it asked car buyers if they would switch brands due to the connectivity features and platform offered by a particular vehicle.

Twenty percent said they would consider switching brands for better connectivity.

“It is clear as the technology develops and it goes further into cars, it will present opportunities for automakers,” said John Newman of McKinsey. The ‘connected car’ driving buyers’ choices


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