Connected car features to have major influence on future purchases

Data collected by AT&T Drive Studio and Ericsson from global consumers shows connected applications will influence vehicle purchasing decisions

Connected car features to have major influence on future purchases

The AT&T Drive Studio and Ericsson released data from a new study documenting the significant influence that connected car features and services are expected to have on customers' vehicle purchase decisions in the future.

The data was sourced from customers likely to purchase a car in the next five years in the United States, Germany, Brazil, Japan and China. The survey was conducted by Ipsos in July and August 2014.

Arun Bhikshesvaran, CMO, Ericsson, said: "What we are seeing in this data is a clear signal that connected car features and services are becoming an important factor in a consumer's purchase decision. The study shows that a transformation is occurring on a global scale, to a world where consumers expect Connected Car services across all markets and models.

"The research shows that we are just now entering a new era of connected car innovation that will integrate all aspects of a person's life, which is why Ericsson is working with the AT&T Drive Studio to provide our award winning, cloud-based connected car solution and our international presence to implement connected car services globally."

Among the findings:
•    Half of all drivers surveyed worldwide would switch brands to a comparable brand to get connected car services.
•    Seventy-two percent of drivers would delay a car purchase by one year to buy a car with connected car services from their preferred brand.
•    Almost two-thirds of drivers surveyed after learning about connected car services consider them an important feature in their next car.
•    Sixty-seven percent of US drivers indicated they would probably or definitely buy connectivity or Wi-Fi service if available in their car.

Customers' awareness of connected car services is high with six features scoring 50% or higher.
•    Roadside assistance (74%)
•    Navigation and real-time traffic (72%)
•    Remote start (71%)
•    Streaming music (70%)
•    Usage-based insurance tracking (52%)
•    Wi-Fi Hotspot (50%)

"The race is on for automakers to compete for customers globally through connected car solutions," said Chris Penrose, senior vice president, Emerging Devices, AT&T Mobility. "The AT&T Drive platform, with collaboration from Ericsson and a host of other players in the ecosystem, is the most robust set of solutions at automakers' disposal today."

Ericsson is a key contributor to the AT&T Drive platform, providing a cloud-based platform on which automakers can choose to run their entire, customized connected car experience. The full research report is available to automakers through the AT&T Drive Studio.

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