Separate studies released in conjunction with the CES show contain warnings for automakers dreaming of big revenues from new “connected car” technology, including AI.
Salesforce, the enterprise software company, concluded from a survey of 2,000 consumers that 65% of drivers don’t know what a “connected car” is. Two-thirds said they don’t have or don’t use connected car features already in their vehicles.
Most importantly, Salesforce found that only 25% of drivers surveyed said “they were willing to pay more for electric or hybrid vehicles, and just 9% would pay more for in-car apps, games, and videos.”
Consulting firm Deloitte had a similar message of caution for automakers counting on connected services revenue to offset losses on EVs.
“While interest in connectivity grows, only 25% of U.S. consumers surveyed are willing to pay extra for connected services as many in established markets have come to expect the introduction of new features as a way for brands to differentiate themselves in the market,” Deloitte found.
Consumers are willing to trade personal information for better route guidance or timely alerts to schedule maintenance, Deloitte’s automotive research leader Ryan Robinson said.
But most aren’t willing to pay extra for those services – especially features such as route guidance that are already available for free via a smartphone app, he said.
Convincing customers to hand over money for digital service subscriptions “is one of the biggest challenges the automakers and captive finance arms face over the next three to five years,” Robinson said.
