AlixPartners Releases '2026 Global Automotive Consumer Sentiment Survey'

AlixPartners, a global consulting firm (headquartered in New York, USA; Japan office in Chiyoda-ku, Tokyo; Representative: Takuro Uechi; hereinafter 'the Company'), today announced the release of its '2026 Global Automotive Consumer Sentiment Survey' (hereinafter 'the Survey'). The survey indicates that concerns over price, charging infrastructure, and driving range remain significant barriers to the adoption of Battery Electric Vehicles (BEVs). Meanwhile, it reveals that Range Extended Electric Vehicles (REEVs) are being globally recognized as a realistic and practical option during the transition to BEVs.

The quality and reliability of Japanese brands remain highly rated at 77% globally. The global average avoidance rate for Japanese brands is only 17%, significantly lower than the 44% for Chinese brands.

Globally, the biggest barrier to BEV adoption is price. 49% of ICE drivers responded that they would not consider a BEV unless it was cheaper than an equivalent ICE vehicle. In contrast, only 8% of consumers in China cited price as a barrier.

REEVs are gaining support as a realistic option in the transition to BEVs, with 45% of all respondents and 71% in China evaluating REEVs as a viable alternative.

Interest in autonomous driving is polarized by region. In China, 24% of consumers desire L4/L5 autonomy, while interest is limited in Europe, the US, and Japan.

SUVs are the most popular body type globally, with a particularly strong preference in South Korea (52%), the UAE (38%), and China (38%).

BEV intenders have higher demands for interior quality compared to ICE intenders, with a 14-percentage-point higher emphasis on materials and quality.

The survey broadly analyzed consumer preferences for powertrains, body types, Advanced Driver-Assistance Systems (ADAS), interior quality, subscription models, etc., among approximately 8,000 vehicle purchasers across 11 countries, including Japan.

A common global trend is increasing consumer interest along three axes: electrification, automation, and quality. However, the pace and priorities vary by market. In the Japanese market, where Hybrid Electric Vehicles (HEVs) are prevalent and quality standards are among the highest globally, the survey results highlight the challenges and opportunities facing automakers and suppliers.

'Made in Japan' Still Strong

The 'Made in Japan' brand continues to hold strong appeal worldwide. Japanese brands are rated highly for quality and reliability at 77% globally, second only to Germany's 80%, and enjoy particularly high trust in South Korea (91%) and the UAE (90%). Furthermore, the global avoidance rate for Japanese brands is 17%, lower than for Chinese (44%), US (25%), and South Korean (20%) brands, indicating sustained high global competitiveness. Domestically, 43% of Japanese consumers prefer domestic brands, significantly exceeding the global average of 33%, reflecting strong support in the home market.

However, the avoidance rate for Japanese brands in China reaches 29%, contrasting sharply with the 10% avoidance rate for German brands in the same market. This is predicted to be primarily due to geopolitical and historical factors. The avoidance rate for Japanese brands in South Korea is also relatively high at 19%, showing significant regional differences in brand perception.

Price is a Barrier to BEV Transition, REEV Emerges as a Realistic Option

While the shift to electrification is progressing globally, consumer preferences remain diverse. 49% of ICE drivers stated they would not consider a BEV unless it was cheaper than an equivalent ICE vehicle, making price the biggest barrier to BEV adoption. Only 12% of consumers in Western Europe and 10% in the US are willing to pay a premium for a BEV, with a similar trend observed in China amid intensifying price competition.

In this context, REEVs are gaining attention as a realistic option during the BEV transition phase. 45% of all respondents, and 71% in China, evaluate REEVs as an alternative to BEVs, making them a practical choice in markets with developing charging infrastructure or low BEV purchase intent.

In Japan, 32% of consumers evaluate REEVs as an alternative to BEVs, which is below the global average of 45%. This suggests that interest in REEVs is still limited in the Japanese market, where HEVs and PHEVs are already widespread.

Interest in Autonomous Driving is Polarized by Region

Expectations and interest in autonomous driving vary significantly by region. 42% of all respondents cited SAE Level 1 (e.g., Adaptive Cruise Control) as the desired level of driving assistance for their next vehicle, indicating limited demand for highly automated driving features. In contrast, 24% of consumers in China desire L4/L5 high/full automation, far exceeding Germany and the US (6% each). Chinese consumers cite 'reduced driving stress' (69%) and 'productive use of driving time' (52%) as the main benefits of autonomous driving, showing a different value set compared to other markets that prioritize safety.

In Japan, only 7% of consumers desire L4/L5 level autonomous driving features, aligning with the cautious global average of 10%.

SUVs are Mainstream Globally

SUVs are particularly popular in South Korea (52%), the UAE (38%), and China (38%), and have become the most preferred body type globally. The survey also reveals that the tendency to choose an SUV strengthens with larger budgets. Meanwhile, 42% of consumers in China reported having compromised on body type due to limited powertrain options, highlighting the need for a more comprehensive product lineup.

In Japan, while SUV demand is high, diverse body types such as sedans and compact cars remain popular, with consumer preferences being dispersed, similar to European and US markets.

Excessive Focus on Cost Reduction Risks Damaging Quality Trust

Interior quality is a globally important purchase criterion, with material quality (65%), fit and finish (59%), and design (55%) being highly valued. BEV intenders tend to place greater emphasis on material quality (77% vs. 63%) and fit and finish (73% vs. 55%) compared to ICE intenders, suggesting that quality expectations rise with the progress of electrification. Chinese consumers place higher importance on material quality and design than the global average (material +6 points, fit and finish +6 points, design +8 points), making quality appeal an effective differentiator even amid intensifying competition from new players.

The importance placed on material quality (30%), fit and finish (22%), and design (31%) among Japanese consumers is among the lowest globally. However, this is not due to a lack of interest in quality, but rather reflects a situation where high quality is the market standard, making it less salient for consumers to consciously prioritize.

Regarding in-vehicle controls, only 20% of consumers overall prefer touchscreen-only operation (13% in China), while 33% prefer a combination of touchscreen and physical buttons.