The automotive industry is poised for a significant upswing in global demand for new cars by 2026, according to a comprehensive survey conducted by EY. The survey, which encompassed the opinions of 19,000 individuals across 28 countries, indicates a 7% increase in the number of respondents intending to purchase a new car by mid-2026 compared to the previous year.
This anticipated rise in car sales is a multifaceted phenomenon, influenced by various factors including technological advancements, economic dynamics, and shifting consumer preferences. Notably, the survey reveals a growing inclination towards electric vehicles (EVs), with 24% of potential buyers considering an EV for their next purchase, a slight uptick from 20% in the prior year. This trend reflects the increasing awareness and acceptance of EVs as a viable alternative to traditional combustion engines.
The automotive industry is undergoing a technological revolution, with significant improvements in vehicle technology, safety features, and connectivity. The integration of advanced driver-assistance systems (ADAS) and the development of autonomous vehicles are making cars more appealing to consumers.
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Despite the burgeoning interest in electric cars, petrol engines continue to hold the majority preference at 29%, while hybrids and plug-in hybrids collectively attract 33% of prospective buyers. Diesel vehicles, on the other hand, appear to be losing favor, chosen by only 8% of respondents. The German market, in particular, shows a stronger predilection for electric cars, with 26% of potential buyers leaning towards them, surpassing the European average of 21%.
As the global economy recovers from the impacts of the pandemic, consumer spending power is expected to rise. This economic rebound is likely to translate into higher car sales, as individuals and businesses update their fleets. There is a growing consciousness about the environmental impact of transportation. This has led to increased interest in electric vehicles (EVs) and hybrids, which are perceived as more eco-friendly alternatives to traditional combustion engines.
The survey also sheds light on the current economic climate’s impact on consumer behavior. Many individuals are postponing car purchases due to economic uncertainties, which has led to a decline in sales for some of the world’s largest car manufacturers. In Germany, new car registrations fell by 1% in the first nine months of the year, with a notable 29% decrease in registrations for fully electric vehicles.
Many governments are offering incentives to encourage the purchase of low-emission vehicles. These incentives, which can include tax breaks, grants, and subsidies, make EVs and hybrids more financially accessible to a broader range of consumers. The survey indicates a shift in consumer preferences, with a notable number of potential buyers considering EVs for their next car purchase. This shift is partly driven by a desire for more sustainable and innovative transportation options.
The ongoing trend of urbanization and the evolution of mobility solutions, such as car-sharing and ride-hailing services, are influencing car ownership patterns and preferences, potentially leading to an increase in new car purchases. These factors, combined with the automotive industry’s efforts to address supply chain challenges and to produce more sustainable and efficient vehicles, are setting the stage for a significant uptick in new car demand by 2026.
Looking ahead, the automotive industry must navigate these complex consumer patterns while also addressing the challenges posed by supply chain disruptions and the transition towards sustainable mobility. Car makers will need to balance innovation with affordability, ensuring that new models meet the evolving demands of consumers who are increasingly prioritizing environmental impact alongside performance and cost.
The survey’s findings underscore the importance of strategic planning for automotive companies as they prepare for the upcoming surge in demand. By staying attuned to consumer preferences and advancing the development of cleaner, more efficient vehicles, the industry can capitalize on this growth opportunity and drive towards a more sustainable future.