Changing car buying behaviour makes sales conversion the new battleground for automakers
While budgets are shrinking and caution is spreading, demand has remained steady in the automotive industry, according to a new Simon-Kucher report. The real challenge for automakers is no longer attracting interest, but converting that interest into sales and closing the deal.
Three in four car buyers worldwide still plan to purchase a new vehicle, but the conditions under which they will do so have grown far more demanding, according to the 2026 edition of Simon-Kucher’s annual Global Automotive Study. The idea of buying a new car has had to take a back seat for many drivers around the world.
The survey of more than 6,600 buyers across 20 markets finds that 90% still own a car outright or through financing, suggesting the market’s foundations are intact. What has changed is behavior: Buyers are taking longer to decide, expecting greater transparency, and increasingly settling for used vehicles when new ones feel out of reach.
“This is not a demand crisis, it is a conversion crisis,” said Martin Gehring, senior partner at Simon-Kucher. “Buyers are still in the market, but they are more cautious, more selective, and far less willing to compromise. Across regions, the winners will be those who make value clear, reduce perceived risk, and remove friction from the buying process.”
Budgets shrink, price rises to the top
The intention to buy a new car dropped seven percentage points since last year, with the average buyer budget falling to €39,000 – down €5,000. The average mileage buyers are willing to accept on a used car has risen to 61,000 kilometers, a sign that more buyers are looking for a better value.
Price is now the single biggest driver of purchase decisions globally, gaining five percentage points over the prior year, well ahead of fuel consumption and reliability. Buyers are not simply asking for lower prices – 52% say what they want most is greater price transparency, and more than half say simplified offers would make it easier to compare options. The main concern about bundled packages is that important features may be missing, a worry cited by 51%.
Europe defensive, Asia still moving forward
Europe is the most conservative region when it comes to spending on new cars. France, Denmark, and Norway are among the most hesitant markets, while Italy, Turkey, and the UK remain comparatively active. North America follows a similar pattern, with buyers more likely to delay purchase or shift toward certified pre-owned options.
Asia tells a different story. China, India, Saudi Arabia, and the UAE continue to drive demand, with buyers placing greater weight on technology and perceived value alongside price. The divide runs across generations as well: Baby Boomers show the sharpest drop in new-car intent, while Gen Z is more likely to experiment with used electrical vehicles, microcars, and software-enabled features when the value case is made clearly.
Electric vehicles: High interest, practical barriers
Electric vehicles are still seen as the future, but practical concerns continue to hold buyers back in Western markets. Charging time is the top barrier, cited by 51% of respondents, followed by battery-life uncertainty and range concerns. Among current electrical vehicle drivers, the main frustrations are occupied charging stations (40%), slow charging (34%), and too few public chargers (31%).
Range extender technology is emerging as a bridge option, with 49% of respondents saying they would consider one – suggesting the industry may find more traction meeting buyers halfway rather than asking for a full commitment to pure electric.
Indeed, most of those surveyed (68%) said they believe electrical vehicles are the future, more than in previous years. The electrical vehicles segment is largely led by the younger buyers, with South America one of the most enthusiastic regions, especially among millennials.
Tariffs, AI, and simpler ownership
More than half of buyers (55%) believe tariffs push up prices across all cars, not just imports. That perception is reinforcing cost sensitivity and nudging some buyers toward locally produced vehicles, though the study notes this remains a selective response rather than a broad shift in brand loyalty.
On AI, buyers respond most positively to practical applications: Predictive maintenance, customer support, and trade-in valuation are where AI is seen as most useful. For many consumers, certain digital features appear to go too far: In-car advertising faces sharp resistance, with 38% rejecting it outright.
When it comes to sharing data with car manufacturers to help them gain valuable insight into customer behavior, Europeans and North Americans were largely unenthusiastic. In terms of both personal driving data and vehicle data, consumers in South America and Asia were significantly more willing to share these insights.
Bundled ownership models are gaining ground. Integrating prepaid maintenance or warranty coverage into the purchase process is seen as helpful or very convenient by 82% of respondents, with especially strong appetite in the UAE and Saudi Arabia.
“Automotive players need to adapt to both global pressure and local nuance,” said Matthias Riemer, partner at Simon-Kucher.
“Winning now requires a shift from product-led selling to value-led conversion. That means structuring clear pricing logic, offering step-down pathways across new and used vehicles, and embedding trust directly into the offer through warranties, service bundles, and transparent information. The brands that reduce perceived risk and make decisions easier will be the ones that unlock demand.”
