#automobile study

Recent car purchases are low in South Africa and Kenya

Not surprisingly, the incidence of car purchases has not been high in the last two years. In South Africa, 43% of consumers surveyed have bought a new car while in Kenya this number is much lower, at 26%. However, Nigeria goes against this grain, with nearly two-thirds of inhabitants having bought a new car in the last two years, despite Covid and the effects that its global lockdown has had on consumer spend.

Low to medium-end cars are the order of the day

Across all three Sub-Saharan countries, 100% of those who have purchased new cars, claim that they were low to medium-range cars, with absolutely everyone staying away from high-end or luxury vehicles, presumably somewhat affected by the fact that people have been driving less than ever before as well as the change in purchase power, in the past two unusual years.

South Africans who have purchased a car recently have gone for entry-level hatchbacks and entry-level sedans more than any other type. Mid-range hatchbacks and mid-range sedans come next, with SUV’s not having seen high recent sales, as family holidays are curtailed, and budgets tighter, due to the pandemic.

Nigerians have followed similar lines, mainly purchasing mid-range hatchbacks and entry-level sedans more than SUV’s. Kenyans on the other hand, perhaps due to the geographic layout of the country, have had a more even spread across mid-to-entry level hatchbacks, sedans and SUVs, with 21% of car purchasers claiming to have purchased an entry-level SUV.

Consumers are well aware of automobile safety ratings

The vast majority of car buyers are aware of automobile safety ratings across all three countries. More than a third of those who have purchased a car in the past 2 years, deem safety features to be important, across all three Sub-Saharan countries.

The majority of car purchases feel that airbags for all passengers, and ABS (Antilock Braking System), EBD (Electronic Brakeforce distribution) and ESP (Electronic Stability Program) are safety features that should ideally come standard with all cars, understanding the premise that these would attract a corresponding price hike.

Other than fuel efficiency, safety elements are the main features considered

Across sub-Saharan countries, those who have purchased a new car recently, rate fuel efficiency followed by the standard safety features (airbags and braking systems) as the most important features that they considered in their purchase decisions. (Ratings reflect the top two boxes, so those who deem the feature to be ‘very important or something they ‘would prefer to have).

With regards to airbags, most purchasers considered whether there were airbags for the driver and passenger seat, as their primary consideration. ABS was more considered than EBS and ASP, in terms of braking systems.

Imminent purchasers plan to spend mainly in the lower price brackets

Of those who haven’t purchased a car in the past two years, but plan to in the next two, the preference for types of cars reflects those that we have already seen: South Africans and Nigerians plan to purchase mainly hatchbacks and sedans while Kenyans are more open to SUV.

South Africans and Kenyans plan to spend within the lowest brackets (up to R350,000 and 1,500,000 KES respectively) but Nigerians plan to spend either in their lowest bracket (up to 5,000,000 NGN) or in the very top bracket (over 10,000,000 NGN), highlighting the dichotomous society of this country.

Consumers would spend more on vehicles with higher safety ratings

Half of South Africans indicate that they would be prepared to spend a premium of 10% or more on a car in order to get one with a higher safety rating, with this number being even higher in both Kenya and Nigeria.

Across all three sub-Saharan African countries, the same three features are essential to potential purchasers of vehicles, namely fuel efficiency together with the two safety features, airbags and braking systems.

As safety becomes a bigger feature in the consumer’s mind when it comes to vehicle purchase decisions, automotive brands will have to ensure that new vehicles encompass these elements as a matter of course.

Purchasing a vehicle is a crucial decision that a consumer makes. Commonly such a decision-making process starts with the financial aspects of the purchase consideration. Then where does the consideration of automobile safety features come in the process? How much importance does a consumer give to safety ratings before purchasing a vehicle? This is especially important in developing markets where automobile safety standards are only now improving and several safety features are generally not offered as a standard option, making consumer knowledge and decision-making all the more critical.

To draw consumer insights on this matter, Borderless Access conducted an online study in India and countries in South America and Africa. In this blog, we explore what consumers in Colombia think about automobile safety standards and if and how safety features influence their purchase decisions.

Are Colombian consumers aware of automobile safety ratings?

Our study findings indicate that a significant percentage of consumers who are planning to buy a car is not aware of automobile safety ratings. However, a greater number of consumers, who have recently bought a car are aware of the same which indicates that consumers were informed about safety ratings at the time of purchase if they were not already.

Potential car buyers are more likely to spend extra on a safer car

While awareness about automobile safety ratings is relatively low among consumers in Colombia, especially among those who are yet to own a car, they are certainly willing to spend more on a car that is considered safer. Our survey found that around 56% of potential buyers are willing to pay a 10% premium on a safer car.

On the other hand, 27% of recent car owners said they spent extra on safer cars. Speaking of how much importance people gave to a vehicle’s safety ratings before purchasing a car, about 38% of respondents said they did not give importance to safety ratings while a little more than 35% leaned toward cars with high safety ratings.

Fuel efficiency matters but so do airbags

Our study findings reveal that most recent buyers preferred cars with good fuel efficiency. At the same time, they also gave equal preference to safety features, especially airbags and electronic driver aids (EDAs). Talking specifically about EDAs, aan nti-lock braking system (ABS) was the most preferred feature among safety feature among consumers.

A similar preference can be noticed among upcoming car buyers as well, with most people in the market for a new car looking to make a decision based on a product’s fuel efficiency and availability of airbags. Our study also suggests that the majority of upcoming buyers would prefer to have a car with all airbags as well as ABS.

Concerning airbags and ABS

Not surprisingly, considering the buying preferences, most consumers in Columbia have a strong, positive opinion on having airbags and would prefer to have all airbags as a standard safety features on cars.

Similar to the majority opinion people have about airbags, our study revealed that consumers have an equally strong and positive opinion on the importance of electronic driver aids (EDAs). In particular, ABS is the most sought-after feature among all other EDAs. Significantly, a large number of consumers want ABS, ESP (Electronic Stability Program or Electronic Stability Control) and EBD (Electronic Brakeforce distribution) as standardized safety equipment in vehicles.

Consumers are willing to spend more on airbags and EDAs

In line with consumer preference for airbags and EBD, our study shows that consumers looking to buy a new vehicle soon are willing to spend a 10% premium on a car with all airbags. Interestingly, a significant majority are also willing to spend a 5% premium on EDAs as well, which can be considerably more expensive than having just airbags.

Conclusion

In a nutshell, the findings of this study indicate that even though most consumers in Colombia are yet to be more aware of automobile safety ratings, they are certainly not ignoring the safety aspects completely. Be it, recent car owner or potential buyers, they all prioritize safety and are willing to pay extra for standard features like airbags and ABS.

These are critical aspects of Columbian auto-consumer preferences that could certainly assist automakers in devising appropriate plans to market to the consumers. And at the same time, brands should also capitalize on the lack of awareness about safety ratings by devising communications that could drive sales based on the safety aspects of a vehicle.

As per Brazil’National Road Safety Plan 2019-28, the federal government aims at reducing the road traffic death rate by 50% per 100,000 population.

In line with this national goal, automobile brands are making efforts to manufacture safer passenger vehicles. Efforts by Latin NCAP are also a positive step in this direction, which involves crash testing cars and rating them based on how well they protect occupants. These and other measures are helping increase awareness among consumers about road safety and the importance of owning safer cars.

To learn more about consumers’ perceptions regarding automobile safety and how safety ratings and safety features influence their purchase decision, Borderless Access conducted an online study in India and countries in South America and Africa. This blog highlights the research findings from Brazil, one of the top ten largest automobile markets in the world.

Are people in Brazil aware of automobile safety ratings?

Crash test-based safety ratings shed light on how cars perform in real-life accident scenarios and how well they protect their occupants.

The question here is, are consumers aware of these ratings and how likely are they to make a purchase decision based on safety ratings? According to our study, consumers in Brazil are highly aware of automobile safety ratings.

Brazil has been recording an alarming number of road crashes for a while now. Hence it is not surprising that more potential car buyers, compared to those who have already purchased a car (but were unaware of safety ratings at the time of purchase), are considering paying more for a car with better safety ratings.

On the other hand, a significant percentage of existing car owners did not pay extra for a safer car.

Airbags are the most sought after safety feature

Airbags as a safety feature are now available in almost all cars across variants and price ranges. Our study reveals that Brazilian consumers gave airbags the highest importance even over fuel efficiency while making the purchase.

Consumers also considered electronic driver aids (EDA) when purchasing a car. Furthermore, the most demanded EDA is an anti-lock braking system (ABS).

The need for a safer car equals the need for a fuel-efficient car

People planning to buy a car soon has given equal importance to airbags and fuel efficiency. In particular, the respondents consider airbags and EBAs to be of particular importance compared to other aspects of a car while considering a car purchase.

Furthermore, comparing how much a potential car buyer is willing to spend on these two safety features, we found that, airbags lead. 47% of respondents showed interest in spending 10% premium on airbags whereas 46% of them said they can spend about 5% premium on EDAs.

Consumer perception of airbags and electronic driver aids as standardized safety features

Our study reveals that most potential car buyers in Brazil give importance to front airbags, while a significant number also consider making all airbags a standard safety feature important.

A majority of the respondents gave importance to ABS, the most demanded electronic driver's aid, along with having ESP (Electronic Stability Program or Electronic Stability Control) and EBD (Electronic Brakeforce distribution) as standardized equipment.

Conclusion

Auto safety has come a long way from the days of cars without seatbelts. Today’s consumers are considerably informed and conscious of their choices, especially when it comes to making an important purchase such as a car. Summing up the study findings, we see that car buyer are highly aware of safety ratings and give significant importance to safety features while making a purchase decision. These are key points for auto manufacturers to take into consideration when marketing their products, which can make or break a potential buyer’s purchase decision.