CARS: WHATEVER IT TAKES? - An international survey conducted in 18 countries

 
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CARS: WHATEVER IT TAKES? - An international survey conducted in 18 countries
CARS:
WHATEVER
IT TAKES?
An international survey conducted in 18 countries
EDITORIAL

     Rising fuel prices, higher maintenance costs,         Could the electric car alleviate the cost pressure
     pressure on the used-car market and electric cars     as an environmentally sound vehicle option?
     that are often too expensive: While the car was       Currently the opposite appears more likely. In 2022
     mainly associated first and foremost with joy and     the EU decided to ban combustion-engine vehicles
     freedom, particularly in Germany, it is now turning   from 2035. If European and US manufacturers stick to
     into a necessary luxury item. The study conducted     their current high priced electric vehicles, many more
     by us this year shows that more and more car          car drivers will find it difficult to buy a new car.
     drivers are making compromises in order to buy        New social challenges may emerge as a result:
     and maintain a vehicle.                               “Mobile” exclusion is a possibility – especially
                                                           as lots of people are still dependent on a car,
     This development can already be clearly seen in       particularly in rural areas.
     the economic behaviour of buyers. They are no
     longer willing to do whatever is necessary to own     Policymakers also need to act here. Mobility
     a car. In order to soften the financial pressure,     needs to remain accessible for all. This is shown
     many drivers are deciding to “drive less to           for example by the debate about government
     consume less”. The alternative of not owning a car    measures such as the fuel discount. Trade and
     is also becoming more popular.                        industry are also well advised to find answers to
                                                           the emerging cost dilemma.
     From an environmental point of view, this is
     not the only positive effect of this cost pressure.   I hope you find this an exciting read and learn
     Drivers are also thinking more seriously about        many interesting things.
     soft mobility. Our latest survey shows cleary, that
     acceptance of walking, bicycle or electric scooter
     is rising as these means of transport become more
     affordable and practical.                             Michel Thebault, CEO Consors Finanz

03
CARS: WHATEVER IT TAKES? 2023

                                                                                                          TABLE OF CONTENTS
     METHODOLOGY   The economic and marketing analyses, as well as the forecasts, were performed in
                                                                                                                              1
                                                                                                                                  ARE CARS BECOMING A LUXURY?
                                                                                                                                  A must-have item
                                                                                                                                  The cost of using a car has rocketed
                                                                                                                                                                                           07
                                                                                                                                                                                           08
                                                                                                                                                                                            22
                   conjunction with the survey and consulting firm C-Ways, a specialist in Anticipation
                   Marketing.
                                                                                                                                  Cutting costs, at any cost                                38
                   Quantitative consumer interviews were conducted by Harris Interactive between

                                                                                                                              2
                   23 June and 8 July 2022 in 18 countries: Austria, Belgium, Brazil, China, France,
                   Germany, Italy, Japan, Mexico, Netherlands, Norway, Poland, Portugal, South Africa,                            COMPLEMENTARY MOBILITY SOLUTIONS 49
                   Spain, Turkey, United Kingdom and United States.
                   In total, 16,600 individuals were interviewed online (CAWI method).                                            It’s hard to live a carless life                          50
                   These individuals, aged 18 to 65, were drawn from national samples representative
                   of each country. The quota method was employed to ensure that the sample
                                                                                                                                  The mobility mix: an urban trend                          59
                   was representative (gender and age). 3,000 interviews were conducted in France
                   and 800 in each of the other countries.

                                                                                                                              3
                                                                                                                                  ELECTRIC VEHICLES?
                                                                                                                                  SURE, BUT AT WHAT PRICE?                                 69
                                                                                                                                  Cars: a source of exclusion?                              70
                                                                                                                                  The electric coup de grâce                                79

                                                                                                                                  EPILOGUE                                                 84
                   Co-authored by: Luc Charbonnier and C-Ways
                   Editorial coordination: Patricia Bosc                                                                          COUNTRY FACT SHEETS                                      85
                   Design: © Altavia Cosmic
                   Illustrations: Altavia Cosmic, Shutterstock                                                                    APPENDICES                                              105
04                                                                                                                                                                                               05
CARS: WHATEVER IT TAKES? 2023

     ARE CARS

                                                                                  1
     BECOMING
     A LUXURY?

     Although there have been signs in recent years that car sales are running out of
     steam, and not only because of the Covid crisis, motorists still seem unwilling to live
     without a vehicle, despite the financial burden that purchasing and using a car entails.
     The main driver of these budgetary tensions is fuel, with prices at the pump having
     risen dramatically. This new 2023 edition of the study demonstrates that people are
     prepared to travel less to avoid too much financial suffering, but also that they do not
     want to be alone in taking action.

06                                                                                                 07
CARS: WHATEVER IT TAKES? 2023

     A must-have
                                                             Fig. 1 / Context
                                                           Global new passenger vehicle sales, 2005-2023
                                                           In millions of units.

     item                                                   2005

                                                            2006

                                                            2007
                                                                                           45.4

                                                                                            48

                                                                                              50.8
                                                                                                                                The sales bounce
                                                                                                                           observed in 2021, following
                                                            2008                             50                             the Covid crash of 2020,
                                                            2009                             49.7
                                                                                                                             has failed to mask the
                                                            2010                                   55.8
                                                                                                                                market’s decline

     General context
                                                            2011                                     57.8

                                                            2012                                         60.9

                                                            2013                                           63.4          China and the United States, the world’s two largest
     A STRUGGLING MARKET                                    2014                                            65.7         markets, saw their sales peak in 2017 (25 million
     Could the golden age of the automobile be behind                                                                    vehicles sold) and 2016 (18 million), respectively.
                                                            2015                                            66.3
     us, at least in terms of sales? This is the message                                                                 This was followed by a sharp drop that cannot be
     one might take away after glancing at global new       2016                                                69.5     blamed solely on the Covid pandemic (Fig. 2).
     passenger vehicle sales over the last few years.
                                                            2017                                                  70.7
     The curve illustrating these figures since 2005                                                                     The situation has been less clear cut in Europe,
     appears to have peaked in 2017, when around            2018                                                68.7     Japan and Brazil, but the overall picture is more or
     70 million units were sold (Fig. 1).                   2019                                           64
                                                                                                                         less the same. Indeed, all the countries surveyed
     The sales bounce observed in 2021, following                                                                        posted their highest sales figures before 2021, with
                                                            2020                                  53.9
     the Covid crash of 2020, has failed to mask the                                                                     fortunes varying from one year to the next (Fig. 3).
     market’s decline. What’s more, supply chains are       2021                                    56.4
     not expected to return to normal in the foreseeable
                                                            2022*                                 52.5
     future, particularly when it comes to semi-
     conductors and vehicle deliveries.                     2023**                                       60.8

                                                           Source: OICA.

                                                           * Estimate. ** Forecast.

08                                                                                                                                                                              09
CARS: WHATEVER IT TAKES? 2023

         Fig. 2 / Context
                                                                                                               24.4    24.7
                                                                                                                                 23.7                          THE EVER-RISING PRICE                                                  Germany and Spain, price rises have been more
     Global new
             Chine
                  passenger vehicle
                            État-Unis
                                      sales, 2005-2021
                                                                                                       21.2    24.4    24.7               21.5          21.5
                                                                                                                                                               OF NEW VEHICLES                                                        gradual, but they remain significant (7%, 9% and
     In millions of units.                                                                                                       23.7
                                                                                               19.7
                                                                                                                                                 20.2          While sales volumes have fallen, the same cannot                       7% respectively). Only in Brazil and Japan, where
                     Chine                 État-Unis                                                   21.2                               21.5          21.5
                                                                                      17.9
                                                                                                                                                 20.2          be said for the price of new cars. In most of the                      trends have been strikingly similar, has the price
          17                                                                                   19.7
                China 17       United States
                                16                                           15.5
                                                                                      17.9             17.4    17.5    17.2      17.2      17                  countries covered by this survey, prices have been                     curve remained relatively flat in recent years,
                                                                    14.5                       16.5
          17          17        16        13               13.8
                                                                             15.5
                                                                                      15.5
                                                                                                               17.5                              14.5
                                                                                                                                                        14.9   rising steadily for almost a decade, with increases                    after a sharp increase in 2015 (Fig. 4).
                                                                             14.4                      17.4            17.2      17.2      17
                                                                                               16.5
                                                   10      13.8
                                                                    14.5
                                                                    12.7              15.5                                                                     of over 20% in China, the US and the UK. In France,
                                          13               11.6                                                                                         14.9
                                                                             14.4                                                                14.5
                                                  10.3              12.7
                                                  10
                                          6.8              11.6
                                6.3
                      5.2                         10.3
          4.0                             6.8
                                6.3
                      5.2
          4.0
                                                                                                                                                                 Fig. 4 / Context
         2005        2006      2007      2008     2009     2010     2011     2012     2013    2014     2015    2016    2017      2018     2019   2020   2021
                                                                                                                                                               Change in the average price of new vehicles
     Source: OICA.                                                                                                                                             In €.
         2005        2006      2007      2008     2009     2010     2011     2012     2013    2014     2015    2016    2017      2018     2019   2020   2021           Germany            France          United Kingdom   Spain   Netherlands    China     Japan        Brazil    United States
                                                                                                                                                                       Germany            France          United Kingdom   Spain   Netherlands    China     Japan        Brazil    United States
         Fig. 3 / Context
                                                                                                                                                               45,000
     Global new passenger vehicle sales, 2005-2021                                                                                                             45,000                                                                                                              42,380
     In millions of units.                                                                                                                                                                                                                                                         42,380
               Germany
               Germany                France
                                      France        United
                                                    United Kingdom
                                                           Kingdom            Spain
                                                                              Spain           Netherlands
                                                                                              Netherlands         Japan
                                                                                                                  Japan          Brazil
                                                                                                                                 Brazil
                                                                                                                                                               40,000
                                                                                                                                                               40,000
     5
     5

                                                                                                                                                               35,000
                                                                                                                                                               35,000
     4
     4

                                                                                                                                                               30,000
     3
     3                                                                                                                                                         30,000

                                                                                                                                                               25,000
     2
     2                                                                                                                                                         25,000

                                                                                                                                                               20,000
     1
     1                                                                                                                                                                                                                                                                             20,460
                                                                                                                                                               20,000
                                                                                                                                                                                                                                                                                   20,460

                                                                                                                                                               15,000
     0
     0                                                                                                                                                                             2013            2014          2015      2016      2017        2018      2019          2020        2021
                                                                                                                                                               15,000
            2005
            2005        2006
                        2006      2007
                                  2007     2008
                                           2008     2009
                                                    2009     2010
                                                             2010     2011
                                                                      2011    2012
                                                                              2012     2013
                                                                                       2013     2014
                                                                                                2014    2015
                                                                                                        2015    2016
                                                                                                                2016      2017
                                                                                                                          2017   2018
                                                                                                                                 2018     2019
                                                                                                                                          2019   2020
                                                                                                                                                 2020   2021
                                                                                                                                                        2021                       2013            2014          2015      2016      2017        2018      2019          2020        2021
                                                                                                                                                               Source: Statista.
     Source: OICA.

10                                                                                                                                                                                                                                                                                                 11
CARS: WHATEVER IT TAKES? 2023

                                                                Fig. 5
     WIDE VARIATIONS
     IN AVERAGE PRICES                                        How much did you pay for this vehicle (total price                                      A WEIGHTY PRICE
     Against this backdrop of rising prices, the average      minus any discounts offered and negotiated)?                                            The 2022 edition of L’Observatoire Cetelem                   became heavier when equipped with electric
                                                              Share of respondents who have at least one car.                                         focused on the SUV craze. This is a class                    motors, due to the presence of batteries,
     sum paid by the motorists surveyed for this edition      In €.
                                                                                                                                                      of vehicle whose weight is an inherent                       the average weight of European vehicles has
     of L’Observatoire Cetelem is €16,181, a figure that
                                                                                                                                                      characteristic. Given that this edition centres              remained stable since 2011, at under 1,400 kg.
     is slightly higher in Europe (€16,712). This narrow                               EUROPE                          18-COUNTRY
                                                                                      AVERAGE €16,712                     AVERAGE €16,181
                                                                                                                                                      on costs, we thought it would be interesting
     difference between the two main geographical                                                                                                     to examine how the price per kilogramme of                   However, the price per kilo of cars has risen
     regions under consideration, Europe and “the rest                                                                                                vehicles has evolved over the last few years.                steeply over the last decade, driven by the cost
                                                               Germany                                                        20,084
     of the world”, can be largely explained by the very                                                                                              Isn’t this the ratio to which consumers refer                of materials and equipment that improve quality.
     high average price of €27,794 observed in China,          Austria                                                    18,340                      when they do their food shopping (Fig. 6)?                   For instance, prices in the UK have risen by
                                                                                                                                                                                                                   almost 30%. In France, the increase has been
     the world’s largest market (Fig. 5).                      Belgium                                                     18,800                     It is worth noting that despite the rise of SUVs,            a little less dramatic, at around 25%, with the
     This is a relatively new market in which new-car
                                                                                                                                                      which became slightly leaner between 2011                    price per kg reaching €15.92. Incidentally, this is
                                                               Spain                                                       18,666
     sales have been particularly strong compared                                                                                                     and 2020 in their petrol and diesel guises, but              the same price as a kilogramme of minced beef.
     to other countries. With the exception of Poland,         France                                                    16,553
     the European country where the average price of
                                                               Italy                                                     17,259
     a vehicle is the lowest (€7,964), one must head                                                                                              Fig. 6 / Context
     to the emerging economies of Brazil, Mexico and           Norway                                                         20,169
                                                                                                                                                Change in the average price per kg of cars
     Turkey to find the lowest average prices. In contrast,                                                                                     Ratio between the average price and the average weight of a new passenger vehicle. In €/kg.
                                                               Netherlands                                             15,194
     Germany, where large saloon cars reign, Norway,
                                                                                                                                                                                                                                                             19.14
     where electric cars are king, and the United States,      Poland                                       7,964                                      Germany            France   United Kingdom   Spain           Netherlands

     the world’s second largest market, post an average        Portugal                                                 16,110                  18                                                                                                           17.99

     price of over €20,000. At €16,553, France is in line      United
                                                                                                                       14,696
     with the average figure.                                  Kingdom

                                                                                                                                                16                                                                                                           15.92
                                                               Turkey                                          9,680
                                                                                                                                                                                                                                                             15.70
                                                                                                                                                                                                                                                             15.40
                                                               South Africa                                          13,093

                                                               Japan                                                     16,946                 14
                                                                                                                                                                13.68

                                                               China                                                                   27,794                   12.74
                                                                                                                                                                12.64
                                                               United States                                                  20,278            12

                                                               Mexico                                           10,459                                          10.76
                                                                                                                                                                10.46
                                                                                                                                                10
                                                               Brazil                                         9,167
                                                                                                                                                                   2001               2005                  2010                    2015                  2020

                                                              Source: L’Observatoire Cetelem de l’Automobile 2023.                              Source: ICCT.

12                                                                                                                                                                                                                                                                        13
CARS: WHATEVER IT TAKES? 2023

     A purchase                                                                                   Fig. 7
                                                                                                When you purchased your vehicle (new or used), did you think the price was...?
                                                                                                Share of respondents who have at least one car and financed it other than by leasing.

     that is not
                                                                        USED CAR                In %.
                                                                                                                                                                                                                                                      12%                                   8%
                                                                                                                                                                                                                                EUROPE                58%        18-COUNTRY                53%

     taken for granted
                                                                                                                                                                                                                               AVERAGE                25%           AVERAGE                30%
                                                                                                   Very reasonable               Quite reasonable       Quite high      Very high                                                                      5%                                   9%

                                                                                                                                                                                                                       3                       5            4
                                                                                                                                     8       7         10                  9           10       10                                9                                                         10
                                                                                                  11                   12                                                                                    12                                                   12              12
                                                                                                            15
     A REASONABLE PRICE... SECOND HAND
                                                                                                                                                               25
     The steady increase in the price of cars does not
     appear to overly trouble those who own one.
     6 out of 10 respondents believe that they paid a                                                                                                                                                                 47
     reasonable price for their vehicle. Europeans are                                                                                                                                                                                        51
                                                                                                                                            53                                                                                 52                                                           49
     considerably more likely to hold this view                                                                        51
                                                                                                                                                                                                                                                         63
                                                                                                  56                                60                 58                              59                                                                         53
     (7 out of 10). If we examine the results in greater                                                                                                                 66                                  60                                                                   59
                                                                                                                                                               39                               69
     geographical detail, we see that the Portuguese                                                        64
     and Austrians are the most satisfied (8 out of 10),
     while the Brazilians and South Africans are far more
     split (4 out of 10) (Fig. 7). It is apparent throughout
     this report that these two countries often coalesce                                                                                                                                                              32

     around certain views.
                                                                                                                                                                                                                               30             37                                            32
                                                                                                  23                                        35                 26                                                                                                 25
                                                                                                                       32
                                                                                                                                    27                 28                              26                    21                                          29
     However, a more detailed analysis of the data                                                                                                                                                                                                                                25
                                                                                                            17                                                           22                     16
     uncovers a clearer divide between buyers of used
                                                                                                                                                                                                                      18
     cars and those who buy new vehicles. 77% of the                                              10                                                           10                                                                 9                               10                         9
                                                                                                             4          5            5       5          4                               5         5           7                                7            4                      4
     former say they are happy with the price they paid                                                                                                                    3
     for their vehicle, compared with just 57% of the
     latter. This is a substantial gap and one that can be        6 out of 10 respondents
                                                               believe they paid a reasonable

                                                                                                  Germany

                                                                                                            Austria

                                                                                                                       Belgium

                                                                                                                                    Spain

                                                                                                                                            France

                                                                                                                                                       Italy

                                                                                                                                                               Norway

                                                                                                                                                                         Netherlands

                                                                                                                                                                                       Poland

                                                                                                                                                                                                Portugal

                                                                                                                                                                                                             United
                                                                                                                                                                                                           Kingdom

                                                                                                                                                                                                                      Turkey

                                                                                                                                                                                                                               South Africa

                                                                                                                                                                                                                                              Japan

                                                                                                                                                                                                                                                         China

                                                                                                                                                                                                                                                                  United States

                                                                                                                                                                                                                                                                                  Mexico

                                                                                                                                                                                                                                                                                            Brazil
     observed in all the countries surveyed.

                                                                   price for their vehicle.
                                                                                                Source: L’Observatoire Cetelem de l’Automobile 2023.

14                                                                                                                                                                                                                                                                                                   15
CARS: WHATEVER IT TAKES? 2023

                                                                                                                               Fig. 8
     TAKING A FINANCIAL HIT                                      In contrast, 43% of Turks believe that buying a car
     IS UNAVOIDABLE                                              is only for those who can afford it, compared with          Do you believe that owning a car is...?
                                                                                                                             To all respondents. In %.
     However, a reasonable price does not necessarily            an overall average of only 15%. The tough economic
     make a car easy to purchase. Although buying a car          and financial circumstances the country has been               The preserve of wealthier individuals                                                                                       EUROPE
                                                                                                                                                                                                                                                                                  15%
                                                                                                                                                                                                                                                                                             18-COUNTRY
                                                                                                                                                                                                                                                                                                                       15%
                                                                                                                                Achievable, but only through financial sacrifices                                                                          AVERAGE                72%           AVERAGE                69%
     may generally seem affordable, it requires sacrifices       facing for many months now go a long way to                    Financially achievable for everyone                                                                                                               13%                                  16%
     that make owning a vehicle less enjoyable. 7 out            explaining this result. With inflation rising at a rate
     of 10 motorists believe that it can be done, but not        far beyond that of other countries and the value of
                                                                                                                                                                                                                                                                                      3
     without a degree of financial sacrifice (Fig. 8). On this   the Turkish lira falling sharply, it is difficult for the                                                          10                              8                                                                         10
                                                                                                                                                              14                            14       14                                  13                               12                                  11
     issue, respondents in Europe and in the rest of the         population to be optimistic about buying a car. It                                 18                   17                                                 15                             17                                                           18
                                                                                                                               20        21
     world are more or less in agreement. One country            should also be noted that the feeling that cars are
     stands apart somewhat, by offering a much more              only for the wealthy is generally more pronounced
                                                                                                                                                                                                                                                  43
     positive outlook. Only 53% of Chinese respondents           among non-vehicle owners, with 3 in 10 being of
     believe that buying a car and making financial              this opinion.                                                                                                                                                                                                       53
     sacrifices go hand in hand, but more importantly,
     44% think that it is feasible for everyone. Constantly                                                                                                                                                                                                                                   63
     and rapidly improving access to cars for a broad                                                                                                                                                              73
                                                                                                                                                                                            68                                           67
                                                                                                                                                                                    79                                                                     64             73                                  78
     section of the population in recent years is                                                                              61
                                                                                                                                                              77
                                                                                                                                                                                                     73
                                                                                                                                         67         73                   73                                                 77                                                                                          73
     undoubtedly a factor in these responses.

                                                                                                                                                                                                                                                  46

                                                                                                                                                                                                                                                                                     44

                                                                                                                                                                                                                                                                                              27
                                                                                                                               19                                                           18                     19                    20                19
                                                                                                                                         12                                                          13                                                                   15
                                                                                                                                                     9         9         10         11                                        8                   11                                                          11         9

                                                                                                                               Germany

                                                                                                                                         Austria

                                                                                                                                                    Belgium

                                                                                                                                                              Spain

                                                                                                                                                                         France

                                                                                                                                                                                    Italy

                                                                                                                                                                                            Norway

                                                                                                                                                                                                     Netherlands

                                                                                                                                                                                                                   Poland

                                                                                                                                                                                                                            Portugal

                                                                                                                                                                                                                                         United
                                                                                                                                                                                                                                       Kingdom

                                                                                                                                                                                                                                                  Turkey

                                                                                                                                                                                                                                                           South Africa

                                                                                                                                                                                                                                                                          Japan

                                                                                                                                                                                                                                                                                     China

                                                                                                                                                                                                                                                                                              United States

                                                                                                                                                                                                                                                                                                              Mexico

                                                                                                                                                                                                                                                                                                                        Brazil
                                                                                                                             Source: L’Observatoire Cetelem de l’Automobile 2023.

16                                                                                                                                                                                                                                                                                                                               17
CARS: WHATEVER IT TAKES? 2023

     AN EFFORT RATE
     THAT IS PEAKING
                                                       Fig. 9 / Context
                                                     Effort rate* for the purchase
                                                     of a new passenger vehicle
                                                                                                                                                  Indispensable
     According to motorists, buying a car is
     achievable but requires sacrifices to be
     made. The indicator appropriately named
     the “effort rate” shows this in stark relief.
                                                     in 2021
                                                     In %.

                                                      Germany                                 83
                                                                                                                   18-COUNTRY
                                                                                                                      AVERAGE 104%
                                                                                                                                                  just as they are
     Measured by calculating the ratio between
                                                      Austria                                71
     the price of a car and the average annual                                                                                                    MOTORISTS ARE NOT PREPARED                                The contrasts are starker when we compare the
     income, this rate is close to or greater         Belgium                                79                                                   TO GIVE UP THEIR CARS                                     different generations. 34% of under-35s would be
     than 1 in some countries (Fig. 9): buying                                                                                                    Cars are considered accessible if certain sacrifices      prepared to no longer own a car, compared with
     a car costs some individuals their entire        Spain                                    106
                                                                                                                                                  are made, but they remain fundamentally expensive         just 26% of over-35s. In Germany and Norway,
     annual wage.
                                                      France                                 73                                                   in the eyes of motorists, even if the consensus is        1 in 2 people can see themselves doing so, versus
     In the absence of homogeneous global             Italy                                   87
                                                                                                                                                  that they remain essential. Three-quarters believe        only 1 in 4 in Turkey and 1 in 5 in China. In France,
     statistics, establishing precise and                                                                                                         it is impossible or almost impossible to do without       4 out of 10 under-35s hold this view.
     accurate trends for this effort rate over        Norway                                64                                                    a car, a view commonly held in European countries
     time is almost impossible. However, when                                                                                                     and the rest of the world alike.
                                                      Netherlands                           64
     one considers the stagnation – or even the
     reversal – of income rises in recent times,      Poland                                             216
                                                                                                                                                  The populations who are the most attached to their
     together with the increasing amount of
     technology that goes into cars, electric         Portugal                                     141                                            vehicle(s) can be found in the Netherlands, Austria,
     vehicles in particular, it is not difficult      United                                                                                      Belgium and South Africa. The Brazilians, Japanese
                                                      Kingdom
                                                                                               96
     to imagine how tough these rates are                                                                                                         and Norwegians are the least likely to feel this way.
     becoming.                                        Turkey                                                              445                     In France, the figure is consistent with the average,

     In Europe alone, car prices have risen           South Africa                                                                    590         with 72% of respondents being unable to imagine
                                                                                                                                                                                                                 72% of motorists cannot
                                                                                                                                                  a car-free existence (Fig. 10).
     twice as fast as household incomes, and
     that was before the 2020-2022 price shock
                                                      Japan                                  79                                                                                                                   see themselves living
     triggered by the pandemic and its impact         China                                                    293                                As one might intuitively assume, residents of rural                 without a car.
     in terms of restricting supplies. When the                                                                                                   areas are significantly more likely to be car friendly.
     effort required becomes too great, people        United States                         65
                                                                                                                                                  77% cannot imagine living without a car, compared
     give up on the idea. When will breaking          Mexico                                                   296                                with only 70% of urban dwellers. The highest
     point be reached?
                                                      Brazil                                                       353
                                                                                                                                                  proportion can be found in the Netherlands, while
                                                                                                                                                  Turkey and Mexico boast the lowest.
                                                     Source: Statista.

                                                     * Effort rate for new passenger vehicles: ratio between the average price of a car in 2021
                                                     and the annual net income per capita in 2019.

18                                                                                                                                                                                                                                                                  19
CARS: WHATEVER IT TAKES? 2023

      Fig. 10                                                                                                                                                                                                                                                         Fig. 11
                                                                                                                                                                                                         PEOPLE LOVE CARS
     Would you be willing to never own a car again?                                                                                                                                                      JUST AS THEY ARE                                           When you last bought a vehicle, did you forego
     Share of respondents who have at least one car. In %.                                                                                                                                                                                                          certain features and characteristics in order
                                                                                                                                                                                                         So we have seen that cars are considered
                                                                                                                                                            8%                                  8%
                                                                                                                                                                                                                                                                    to reduce its purchase price?
       Yes, definitely         Yes, probably             No, probably not     No, definitely not                                                                                                         indispensable, but this is even truer in their             Share of respondents who have at least one car
                                                                                                                                     EUROPE                20%       18-COUNTRY                20%
                                                                                                                                    AVERAGE                37%          AVERAGE                39%       current guises. In this sense, whether it be in            and who answered “No”. In %.
                                                                                                                                                           35%                                 33%
                                                                                                                                                                                                         terms of equipment, on-board technology or
                                                                                                                                                                                                                                                                                                       EUROPE              18-COUNTRY
                                                                                                                                                                                                         innovation, automakers have done an excellent                                                AVERAGE       59%       AVERAGE               57%
                                                                                3            6                                                      6
                 7         8          7          7            7                                        7                               9                         6                     7         9       job of convincing a majority of motorists not to
                                                                     11                                           10       12                                         11
      14                                                                                                                                                                                                                                                             Germany                                                               64
                                                                              15                                                                                                                         abandon the advances made. Indeed, 6 out of 10
                15         15                   18                                          19                                      15                       20                                          respondents chose not to forego certain items of            Austria                                                                   67
                                                                                                     20
                                     26                      25                                                            14                                         17              24                 equipment or features when they bought their
                                                                                                                  24                               29
      17                                                             24                                                                                                                         27                                                                   Belgium                                                              60
                                                                                                                                                                                                         vehicle, for the sake of paying less. There are
                                                                                                                                                                                                         significant geographical disparities, however, with         Spain                                                           55
                                                                              37                                                                                                                         the least economically developed countries proving
                                                                                                                                                                                                                                                                     France                                                           58
                37         34                                                                                                                                                                            less intransigent. In Brazil, Turkey, South Africa, but
                                                35                                                                                                                    30
      31                                                                                                                            42                                                                   also Portugal, only 4 out of 10 motorists chose not         Italy                                                       50
                                                                                            45                             43                                44
                                                                     29                              44
                                                             38                                                                                                                                          to forego these features, whereas in Austria, the
                                                                                                                  38                                                                  45                                                                             Norway                                                           58
                                     44                                                                                                                                                         40       Netherlands, Japan and Poland, the figure is close
                                                                                                                                                   48                                                                                                                Netherlands                                                               67
                                                                                                                                                                                                         to 7 out of 10 (Fig. 11).
                                                                                                                                                                                                                                                                     Poland                                                                    66
                                                                                                                                                                                                         Only a few percentage points separate buyers of
                                                                                                                                                                                                                                                                     Portugal                                              39
                           43                                                 45                                                                                      42                                 new and used vehicles, with 55% of the former
      38        41                              40
                                                                     36                                                                                                                                                                                              United
                                                             30                             30                             31       34
                                                                                                                                                             30
                                                                                                                                                                                                         choosing not to give up these features, compared            Kingdom
                                                                                                                                                                                                                                                                                                                                           65
                                                                                                     29           28
                                     23                                                                                                                                               24        24       with 59% of the latter. It is obviously a stretch to ask
                                                                                                                                                   17                                                                                                                Turkey                                                 43
                                                                                                                                                                                                         a used-car dealer to remove an optional extra so as
                                                                                                                                                                                                         to lower the price. However, this is easier to do in        South Africa                                               45

                                                                                                                                                                                                         the case of a new car, before the purchase order has        Japan                                                                     66
                                                                                                                                                                                                         been signed.
                                                                                                                                                                                                                                                                     China                                                            56
      Germany

                Austria

                          Belgium

                                     Spain

                                                France

                                                             Italy

                                                                     Norway

                                                                              Netherlands

                                                                                            Poland

                                                                                                     Portugal

                                                                                                                  United
                                                                                                                Kingdom

                                                                                                                           Turkey

                                                                                                                                    South Africa

                                                                                                                                                   Japan

                                                                                                                                                             China

                                                                                                                                                                      United States

                                                                                                                                                                                      Mexico

                                                                                                                                                                                                Brazil
                                                                                                                                                                                                                                                                     United States                                                         63

     Source: L’Observatoire Cetelem de l’Automobile 2023.
                                                                                                                                                                                                                                                                     Mexico                                                          54

                                                                                                                                                                                                                                                                     Brazil                                                40
                                                                                                                                                                                                                                                                    Source: L’Observatoire Cetelem de l’Automobile 2023.

20                                                                                                                                                                                                                                                                                                                                                        21
CARS: WHATEVER IT TAKES? 2023

     Using your car:
                                                                           Fig. 12
                                                                                                                                                               If we look purely at the monetary data, automobile-
                                                                         With respect to the finances at your disposal, would                                  related expenses are the highest in the USA, Austria
                                                                         you say that the overall cost of owning this vehicle                                  and Norway, at nearly €2,000 per year (Fig. 13).
                                                                         is...? (Taking into account the purchase price, instalment

     the costs add up
                                                                         payments, upkeep, fuel, parking costs, road tolls, etc.)                              However, if we take into account net annual
                                                                         Share of respondents who have at least one car and                                    income per capita, the cost burden of using a car
                                                                         who consider the cost to be “High”. In %.                                             (fuel, upkeep and insurance) looks very different.
                                                                                     EUROPE AVERAGE 57%                    18-COUNTRY AVERAGE 57%              Americans spend the smallest proportion of their
                                                                                                                                                               earnings on their vehicle (6.4% of their total
                                                                          Germany                                                    47                        annual budget). The figure is twice as high for their
                                                                          Austria                                                         54                   neighbours in Mexico (13.3%). In France, motorists
                  While consumers may consider the price of vehicles                                                                                           spend 7.7% of their annual budget on their vehicle.
                                                                          Belgium                                                               66
                  to be relatively reasonable, the same cannot be
                  said for their running costs. In addition, there are    Spain                                                                61              AN EVER GREATER FINANCIAL BURDEN
                  marked differences from one type of expense                                                                                                  Not only are cars expensive to run nowadays, but
                                                                          France                                                               62
                  to the next.                                                                                                                                 these costs continue to rise. More than 8 out of
                                                                          Italy                                                           55                   10 respondents believe this to be the case, with
                                                                          Norway                                                          56                   only a tiny minority being of the view that running
                                                                                                                                                               costs have fallen. In all the countries surveyed, the
                                                                          Netherlands                                                48

                  Expensive overall
                                                                                                                                                               majority of respondents feel that the cost of using
                                                                          Poland                                                               63              a car is on the up (Fig. 14). Not surprisingly, given
                                                                                                                                                               the economic circumstances they face, the Turks
                                                                          Portugal                                                    52
                                                                                                                                                               are very much of this opinion (95%). Almost as
                                                                          United
                                                                          Kingdom
                                                                                                                                          55                   many South Africans agree. One has to go to Asia,
                  A SIZEABLE COST BURDEN                                  Turkey                                                                          83
                                                                                                                                                               specifically Japan and China, to find motorists who
                  A majority of motorists are adamant that the                                                                                                 are less scathing in comparison, with just under
                  overall cost of owning a vehicle is high relative       South Africa                                                         62              7 out of 10 respondents stating that motoring
                  to the finances at their disposal. 6 out of 10 are      Japan                                                            60                  costs have increased.
                  of this opinion. This is a minority position in
                                                                          China                                                 35
                  only three countries, with the Chinese being the
                  least likely to complain about the high cost of         United States                                              47
                  motoring. Conversely, the Turks, for the reasons
                                                                          Mexico                                                      52
                  mentioned previously, as well as the Brazilians, are
                  overwhelmingly likely to decry the sizeable budget      Brazil                                                                     75
                  required (Fig. 12).                                    Source: L’Observatoire Cetelem de l’Automobile 2023.

22                                                                                                                                                                                                                     23
CARS: WHATEVER IT TAKES? 2023

       Fig. 13                                                                                                                                                                                                      Fig. 14
     Breakdown of the annual cost of using a vehicle by type of expense                                                                                                                                           The main costs involved in using a car are fuel, upkeep, insurance and parking.
     Share of respondents who have at least one car. In €.                                                                                                                                                        In recent years, would you say that your vehicle’s running costs...?
                                                                                                                                                                                                                  Share of respondents who have at least one car. In %.

        Fuel          Upkeep and repairs           Insurance                                                                                             €1,692                                       €1,598         Have fallen          Have remained stable               Have risen                                                                                   3%                                       3%
                                                                                                                                   EUROPE                              18-COUNTRY                                                                                                                                                                 EUROPE                               18-COUNTRY
                                                                                                                                  AVERAGE                 €553            AVERAGE                      €583                                                                                                                                      AVERAGE                 14%              AVERAGE                 15%
                                                                                                                                                          €572                                         €572                                                                                                                                                              83%                                      82%

                                                                                                                                                                                                                                    2          2       1                     2                                1                              1              1                                                 2         2
                                                                                                                                                                                                                     3                                         3                                                    3           3                                 5             4           3
                                                                                                                                                                                                                                                                                   6         6                                           4
                                                                                                                                                                                                                                                                                                         10                                          8                                                              7
                                                                                                                                                                                                                              12                   12                    12                                       11                                                                                     12
                                                                                                                                                                                                                                         17                   14                                                               13
                                                                                                                                                                                                                    18                                                                                                                                                                   18
                                                                                                                                                                                                                                                                                  20
                                                                                                                                                                                                                                                                                           23                                                                                  28
                                                                                                                                                                                                                                                                                                                                                                 30

                 1,810
                                                                                                                                                                           1,979
                                                                     1,901
                            1,981
                                                                                                                                         1,581
     1,835                                                                     1,698
                                                1,745                                                                                                             1,373
                                       1,736                1,619                                                                                        1,103
                                                                                                                    1,488                                                                                                                                                                                                               95
                                                                                                                                                                                            1,262 1,235                                                                                                  89                                       91                                                               91
                                                                                                                                                                                                                              86                   87                    86                                       86                                                                                     86
                                                                                                        1,452                                                                                                                                                 83                                                               84
                                                                                                                                                                                                                    79                   81                                                                                                                                              79
                                                                                                                               1,447                                                                                                                                              74
                 726                                                                          1,341                                                                                                                                                                                        71
                                                                                                                                                                                                                                                                                                                                                                               68
                                                                                                                                                                           702                                                                                                                                                                                   65
                                                                     757
                            575                                                                                                          650
                                                                               623                                                                                717
                                                546                                                                                                      901
      592                                                   468                                                      480                                                                    529          588
                                       535
                                                                                                        469
                 954                                                                          326                              345
                                                                     770                                                                                                   848
                            704                                                618                                                       726
      528                                       579         557                                                      520                                          615
                                       429                                                                                                               410                                486          433
                                                                                              281       337                    304
       Germany

                  Austria

                             Belgium

                                        Spain

                                                 France

                                                             Italy

                                                                      Norway

                                                                                Netherlands

                                                                                               Poland

                                                                                                         Portugal

                                                                                                                      United
                                                                                                                    Kingdom

                                                                                                                                Turkey

                                                                                                                                          South Africa

                                                                                                                                                          Japan

                                                                                                                                                                   China

                                                                                                                                                                            United States

                                                                                                                                                                                             Mexico

                                                                                                                                                                                                         Brazil

                                                                                                                                                                                                                    Germany

                                                                                                                                                                                                                              Austria

                                                                                                                                                                                                                                         Belgium

                                                                                                                                                                                                                                                   Spain

                                                                                                                                                                                                                                                              France

                                                                                                                                                                                                                                                                         Italy

                                                                                                                                                                                                                                                                                  Norway

                                                                                                                                                                                                                                                                                           Netherlands

                                                                                                                                                                                                                                                                                                         Poland

                                                                                                                                                                                                                                                                                                                  Portugal

                                                                                                                                                                                                                                                                                                                               United
                                                                                                                                                                                                                                                                                                                             Kingdom

                                                                                                                                                                                                                                                                                                                                        Turkey

                                                                                                                                                                                                                                                                                                                                                  South Africa

                                                                                                                                                                                                                                                                                                                                                                 Japan

                                                                                                                                                                                                                                                                                                                                                                               China

                                                                                                                                                                                                                                                                                                                                                                                         United States

                                                                                                                                                                                                                                                                                                                                                                                                         Mexico

                                                                                                                                                                                                                                                                                                                                                                                                                   Brazil
     Source: L’Observatoire Cetelem de l’Automobile 2023.                                                                                                                                                         Source: L’Observatoire Cetelem de l’Automobile 2023.

24                                                                                                                                                                                                                                                                                                                                                                                                                          25
CARS: WHATEVER IT TAKES? 2023

                                                                                                                           Fig. 16
          DEPRECIATION: A HIDDEN COST                                                                                    Have you ever avoided travelling because of                                                COSTS PUT PEOPLE OFF
          OF MOTORING                                                                                                    transport costs, regardless of the means of                                                Broadly speaking, cost is an issue that
          Another way of considering vehicle                                                                             transport in question?                                                                     affects mobility as a whole. Nearly 6 out
                                                                                                                         Share of respondents who answered “Yes”.
          budgets is to include not only running                                                                                                                                                                    of 10 people say they have previously
                                                                                                                         To all respondents. In %.
          costs but also the losses incurred. With                                                                                                                                                                  decided not to travel because of the
          this in mind, vehicle depreciation emerges
                                                                                                  TO SELL                                                                                                           cost involved, regardless of the mode of
                                                                                                                                                            EUROPE                    18-COUNTRY
                                                                                                                                                           AVERAGE       55%             AVERAGE              58%
          as the number one budget killer in                                                                                                                                                                        transport used (Fig. 16). In those countries
          European countries, depriving motorists                                                                                                                                                                   with the least resilient economies, such as
                                                                                                                          Germany                                                    45
          of financial leeway when buying their                                                                                                                                                                     Turkey and South Africa, this proportion
          next car. Depreciation is particularly high                                                                     Austria                                                    45                             rises to almost 8 out of 10. The figure for
          on the latest electric models, given the                                                                                                                                                                  France is close to the overall average.
          greater rate of obsolescence of innovative                                                                      Belgium                                                         52
          high-tech products (Fig. 15).                                                                                   Spain                                                            57

                                                                                                                          France                                                               62

                                                                                                                          Italy                                                           55

                                                                                                                          Norway                                                                64

                                                                                                                          Netherlands                                                45

       Fig. 15 / Context                                                                                                  Poland                                                          53

     Estimated breakdown of vehicle running costs                                                                         Portugal                                                                  70
     In %.
                                                                                                                          United
                                                                                                                                                                                           58
                                                                                                                                                                                                                         Nearly 6 out of 10
                                                                                                                          Kingdom
        Interest       Repairs, maintenance, tyres    Insurance   Fuel/energy   Road tax   Depreciation
                                                                                                                          Turkey                                                                         79
                                                                                                                                                                                                                        people say they have
                                                                                                                          South Africa                                                                   79
              DIESEL           6         12          10             17           6                             49
                                                                                                                                                                                                                         previously decided
             PETROL            6        11           10                23             5                             45
                                                                                                                          Japan                                                 33
                                                                                                                                                                                                                        not to travel because
                                                                                                                          China                                                      44
                                                                                                                                                                                                                        of the cost involved.
            HYBRID                                                                                                        United States                                                        61
           VEHICLES
                               7         11          10             17          4                              51

                                                                                                                          Mexico                                                                    68
           ELECTRIC
           VEHICLES
                               7          12              11      10        3                             57
                                                                                                                          Brazil                                                                         77

     Source: LeasePlan 2021.                                                                                             Source: L’Observatoire Cetelem de l’Automobile 2023.

26                                                                                                                                                                                                                                                                   27
CARS: WHATEVER IT TAKES? 2023

     Insurance and upkeep, two costs
                                                                                                                                                                                                                                                                         Fig. 18
                                                                                                                                                                                                              NO INSURANCE AGAINST HIGH COSTS
                                                                                                                                                                                                              Insurance is the number one item of expenditure          How much does your car insurance cost you
                                                                                                                                                                                                                                                                       per year?

     that are still deemed reasonable
                                                                                                                                                                                                              examined by L’Observatoire Cetelem de l’Automobile
                                                                                                                                                                                                                                                                       Share of respondents who have at least one car. In €.
                                                                                                                                                                                                              2023. Its cost is considered high by almost 1 in 2
                                                                                                                                                                                                              respondents (Fig. 17). At the risk of repetition – and                                      EUROPE                     18-COUNTRY
                                                                                                                                                                                                                                                                                                         AVERAGE €572                   AVERAGE €572
                                                                                                                                                                                                              this will not be the last time it occurs – the Turks
                                                                                                                                                                                                              are the most likely to describe this cost as excessive    Germany                                                 528
                                                                                                                                                                                                              (71%), while the Germans are the least likely to do
       Fig. 17                                                                                                                                                                                                                                                          Austria                                                                   954
                                                                                                                                                                                                              so (38%). The geographical breakdown of views on
     Do you think the price of car insurance is...?                                                                                                               8%                                  9%      this topic reveals that a majority of respondents in      Belgium                                                           704
     Share of respondents who have at least one car. In %.                                                                                 EUROPE                45%       18-COUNTRY                42%
                                                                                                                                          AVERAGE                36%          AVERAGE                36%      several European countries believe that insurance
                                                                                                                                                                 11%                                 13%                                                                Spain                                                 429
            Very reasonable           Quite reasonable              Quite high                 Very high                                                                                                      is too expensive. This is notably the case in Belgium
                                                                                                                                      2                                                                       and Norway. Just over 1 in 2 French respondents           France                                                      579

                                       4
                                                                                                                                                                                                              are also of this belief.
                             5                    5                                                6                                                      8            7                                                                                                Italy                                                       557
       10         8                                         11                   10                          9           9                                                  10                       11
                                                                       15                                                                 16                                                13

                                                                                                                                 27                                                                           And yet, there is no real correlation between             Norway                                                             770
                                                                                                                                                                                                              the cost of insurance and the sense that one is           Netherlands                                                  618
                            39
                                      48         43                                               41                                                                                                 31       paying too much for it. At almost €1,000 per year,
                                                            39         31                                  43                                            43
                                                                                                                                          34                       50       46                                                                                          Poland                                       281
       52
                 50                                                                                                     49
                                                                                                                                                                                            45                Austrians incur the highest insurance costs, but
                                                                                 54
                                                                                                                                                                                                              they are among the least likely to consider the price     Portugal                                       337

                                                                                                                                 42
                                                                                                                                                                                                              excessive. At the other end of the scale, the Poles       United
                                                                                                                                                                                                                                                                                                                                520
                                                                                                                                                                                                              are among the most critical, despite paying the           Kingdom
                                                                                                                                                                                                     36       least for their policies. Once again, the French pay      Turkey                                        304
                            41                                         37
                                                 41                                               42                                      34                                                                  close to the average, with an annual spend of €579
                                                            39                                             34                                            38
                                      38                                                                                                                                    30                                                                                          South Africa                                                      726
                                                                                                                        30                                                                  33
       27        34                                                                                                                                                38                                         (Fig. 18).
                                                                                 30                                                                                                                                                                                     Japan                                                 410
                                                                                                                                 29
                                                                                                                                                                                                     22       The Austrians incur the second highest insurance          China                                                        615
                            15                                         17                                  14                             16                                14
       11                             10         11         11                                    11                    12                               11                                  9                costs relative to their income per capita, just ahead
                  8                                                                6                                                                                   5
                                                                                                                                                                                                                                                                        United States                                                           848
                                                                                                                                                                                                              of the Mexicans (2.5% and 2.8%, respectively). The
                                                                                                                                                                                                              Poles bring up the rear in this ranking (1.1%).           Mexico                                                 486
       Germany

                 Austria

                            Belgium

                                      Spain

                                                 France

                                                            Italy

                                                                       Norway

                                                                                 Netherlands

                                                                                                  Poland

                                                                                                           Portugal

                                                                                                                        United
                                                                                                                      Kingdom

                                                                                                                                 Turkey

                                                                                                                                          South Africa

                                                                                                                                                         Japan

                                                                                                                                                                   China

                                                                                                                                                                            United States

                                                                                                                                                                                            Mexico

                                                                                                                                                                                                     Brazil
                                                                                                                                                                                                                                                                        Brazil                                                433

                                                                                                                                                                                                                                                                       Source: L’Observatoire Cetelem de l’Automobile 2023.

     Source: L’Observatoire Cetelem de l’Automobile 2023.

28                                                                                                                                                                                                                                                                                                                                                      29
CARS: WHATEVER IT TAKES? 2023

                                                     Fig. 19 / Context
                                                                                                                  Judging by the cost of vehicle repairs and the                                                         a distance by the Norwegians and the Austrians.
     IS THE INCREASE IN CAR                        Change in the average annual car insurance                     proportion of average income that they represent,                                                      Once more, the Poles spend the least of all the
     INSURANCE PRICES SET                          premium in France, per driver                                  the Japanese seem to have good reason to be                                                            populations surveyed (€326), but the Turks are only
     TO BE REVERSED?                               In €.
                                                                                                                  annoyed. With a mean spend of €901 per year, they                                                      just ahead of them in terms of expenditure (Fig. 21).
     Having risen for six years in a row, car                                                       650
                                                                                                                  are well ahead of every other country, followed at
     insurance premiums fell slightly in France                                                            641
     in 2021, saving motorists an average of €9                                              632
     compared with the previous year (Fig. 19).
                                                                                      615                           Fig. 20
     While the constant rise observed since
     2016 was caused primarily by the soaring                                                                     Do you consider that the amount you spend on servicing and repairing your vehicle each year is...?
     price of spare parts and the passing on of                                595                                Share of respondents who have at least one car. In %.
                                                                                                                                                                                                                                                                               12%                                      11%
     additional costs relating to other types of                                                                                                                                                                                                        EUROPE                 47%           18-COUNTRY                 45%
     insurance (direct or indirect consequences                         580                                                                                                                                                                            AVERAGE                 31%              AVERAGE                 32%
                                                                                                                         Very reasonable           Quite reasonable              Quite high                 Very high
                                                                                                                                                                                                                                                                               10%                                      12%
     of natural disasters, Covid, etc.), the               566
     reason for the fall recorded in 2021 is                                                                                                                                                                                                       2                       3
     altogether different. Indeed, the global
                                                                                                                    12        11          9         9         11         11                                    10       10                                                            9                        11        10
     health crisis, the travel restrictions to                                                                                                                                                14                                     15                 13
                                                                                                                                                                                    20                                                                                                         23
     which it led and the widescale adoption                                                                                                                                                                                                  26
     of remote working have contributed to                                                                                                                                                                                                                             37
     a significant reduction in traffic volumes            2015         2016   2017   2018   2019   2020   2021                                                                                                                                                                                                          37
     and, therefore, in the number of insurance                                                                                          45        43
                                                                                                                                                              44                                               47       47
                                                                                                                                                                         46                                                                             43                           53                        49
     claims and payouts. There has also been       Source: lelynx.fr.
                                                                                                                    52        52                                                    36
                                                                                                                                                                                              53                                     51
     growing competitive pressure within the
                                                                                                                                                                                                                                                                                               47
     car insurance sector, with the arrival                                                                                                                                                                                                   42
     of new entrants who are cutting prices
     by applying new “pay as you drive” or
                                                   REPAIRS: A LESSER EVIL                                                                                                                                                                                              47                                                35
     “pay how you drive” models, where rates
                                                   When it comes to upkeep and repairs, the second                                       34        38                               28                                                                  28
     depend on the amount a car is used or the                                                                                                                34
                                                                                                                                                                         34                                    34       32
                                                   biggest expense item for vehicle owners, the views               26        28                                                                                                                                                                               31
     owner’s driving style.                                                                                                                                                                                                          24                                              32
                                                                                                                                                                                                                                                                                               20
                                                                                                                                                                                              28
                                                   of motorists are more measured, with just over 4 in                                                                                                                                        30
                                                   10 deeming their cost too high (Fig. 20). Once again,                                                                            16                                                                  16                                                               18
                                                                                                                    10                   12        10         11                                                        11           10                                13                      10
                                                                                                                               9                                          9                                     9                                                                                               9
                                                   the Turks top the list (72%), followed this time by                                                                                          5                                                                                     6
                                                   the Japanese, who are also up in arms about high
                                                   prices. Meanwhile, the Americans and the Brits do
                                                   not appear to suffer excessively from the financial

                                                                                                                    Germany

                                                                                                                              Austria

                                                                                                                                         Belgium

                                                                                                                                                   Spain

                                                                                                                                                              France

                                                                                                                                                                         Italy

                                                                                                                                                                                    Norway

                                                                                                                                                                                              Netherlands

                                                                                                                                                                                                               Poland

                                                                                                                                                                                                                        Portugal

                                                                                                                                                                                                                                     United
                                                                                                                                                                                                                                   Kingdom

                                                                                                                                                                                                                                              Turkey

                                                                                                                                                                                                                                                        South Africa

                                                                                                                                                                                                                                                                       Japan

                                                                                                                                                                                                                                                                                     China

                                                                                                                                                                                                                                                                                               United States

                                                                                                                                                                                                                                                                                                               Mexico

                                                                                                                                                                                                                                                                                                                         Brazil
                                                   outlay involved (30% and 34%). What of the French?
                                                   They fall into line with the average, of course.
                                                                                                                  Source: L’Observatoire Cetelem de l’Automobile 2023.

30                                                                                                                                                                                                                                                                                                                                31
CARS: WHATEVER IT TAKES? 2023

                                                                Fig. 21                                                                            Fig. 22 / Context
     If we look at the repairs-to-income ratio, the
     Japanese sit in second place, with the Mexicans          How much do you estimate that you spend on                                         Spare parts price index in France (excluding VAT and on a like-for-like basis)
     taking the lead once again (2.7% and 3.1%                servicing and repairing your vehicle each year?                                    compared to the consumer price index
                                                              Share of respondents who have at least one car. In €.                              2015 = 100.
     respectively). And we find the same two countries at
     the foot of the ranking: Poland and the United States.                                                                                             Spare parts price index   Consumer price index in Metropolitan France
                                                                                               EUROPE                   18-COUNTRY
                                                                                              AVERAGE        €553          AVERAGE        €583
                                                                                                                                                 125
     It should also be noted that spending on repairs
                                                                                                                                                 120
     is very similar regardless of whether vehicles are        Germany                                                      592
     bought new or used. New cars are usually booked                                                                                             115
                                                               Austria                                                            726
     in for regular servicing at dealerships, which comes                                                                                        110
     at a cost, while second-hand vehicles tend to be          Belgium                                                  575
                                                                                                                                                 105
     repaired more frequently, but at cheaper prices.          Spain                                                   535                       100

                                                               France                                                   546                       95

                                                               Italy                                                  468                         90
                                                                                                                                                                2011      2012    2013        2014        2015        2016      2017    2018     2019     2020     2021
                                                               Norway                                                              757           Source: INSEE, SRA.

                                                               Netherlands                                                  623

                                                               Poland                                          326

                                                               Portugal                                               469
                                                                                                                                                       SPARE PARTS PRICES SKYROCKET
                                                               United
                                                                                                                      480
                                                               Kingdom                                                                                 It isn’t just cars that are becoming more                        singled out as a cause of inflated prices for
                                                               Turkey                                           345                                    expensive every year: spare parts prices are                     consumers. The liberalisation of the car parts
                                                                                                                                                       rising too. Several coinciding factors have                      market by the “Climate and Resilience” Act of
                                                               South Africa                                                  650                       contributed to an increase of almost 30%                         22 August 2021 could help reverse the trend
                                                                                                                                                       over the last decade (Fig. 22).                                  (in France). However, progress looks set to
                                                               Japan                                                                     901
                                                                                                                                                       Vehicles are becoming better equipped                            be slow and gradual, since the legislation
                                                               China                                                              717                  and parts are increasingly sophisticated                         will only cover the automotive glass market
                                                                                                                                                       and complex to produce. Recent shortages                         as of January 2023. In the meantime, to help
                                                               United States                                                      702                  (affecting electronic chips in particular),                      lighten the bill, consumers can rely on local
                                                                                                                                                       longer lead times and soaring raw material                       mechanics. Indeed, since 2017 the latter have
                                                               Mexico                                                  529
                                                                                                                                                       costs all explain the recent surge in prices.                    been required to provide an alternative quote
                                                               Brazil                                                       588                        The monopoly enjoyed by automakers when                          based on the use of second-hand parts, which
                                                                                                                                                       it comes to spare parts is also regularly                        are obviously less expensive.
                                                              Source: L’Observatoire Cetelem de l’Automobile 2023.

32                                                                                                                                                                                                                                                                          33
CARS: WHATEVER IT TAKES? 2023

     Fuelling                                                                                                                                                                                                 PETROL, MY DEAR!
                                                                                                                                                                                                              While the cost of insurance and repairs is a matter
                                                                                                                                                                                                                                                                          much, given that 49% of Chinese motorists agree
                                                                                                                                                                                                                                                                          with the suggestion. In every other country, it is

     the problem
                                                                                                                                                                                                              for some debate, the same cannot be said for fuel.          unquestionable, especially in Turkey where 9 out of
                                                                                                                                                                                                              The findings are clear: 7 out of 10 motorists feel          10 people believe the cost is high. The Japanese and
                                                                                                                                                                                                              that their fuel budget is high (Fig. 23).                   Mexicans are a little less vehement, although they
                                                                                                                                                                                                              China is the only country surveyed in which this            are not as measured as the Chinese.
                                                                                                                                                                                                              is not a majority-held view, although not by

       Fig. 23
     Do you feel that your vehicle’s monthly fuel budget is?                                                                                                      7%                                  7%
     Share of respondents who have at least one car. In %.                                                                                 EUROPE                20%       18-COUNTRY                22%
                                                                                                                                          AVERAGE                34%          AVERAGE                34%        Fig. 24 / Context
                                                                                                                                                                 39%                                 37%
                                                                                                                                                                                                              Price of a litre of petrol at the pump
            Very reasonable           Quite reasonable              Quite high                 Very high
                                                                                                                                      1                                                                       In $.
                                                                                                                                                                                                                                                                                                                      WORLD      $0.98
        5                    4         4          5          6                                     5         6           6                   6            6                                                                                                                                                          AVERAGE     $1.35
                  7                                                                 9                                                                              11          9             7        7           2016         August 2022
                                                                                                                                 11
                                      14                               19
                            17                   18                                               19
                 20                                                                                        21                             20                                                          16                                          1.39                                                               1.54
       26                                                   25                                                          23                                                   20                                Germany                                                    Portugal
                                                                                 22                                                                                                         29                                                           1.73                                                           1.77
                                                                                                                                                         34
                                                                                                                                 30
                                                                       21                                                                                          40                                          Austria
                                                                                                                                                                                                                                                1.20                      United                                   1.46
                                      35                                                                                                                                                                                                                 1.75             Kingdom                                         2.01
                            30
                                                 34                                                                                       28                                                          31
                 31                                                                               40       31                                                                29                                Belgium
                                                                                                                                                                                                                                                   1.43                   Turkey
                                                                                                                                                                                                                                                                                                                1.42
                                                                                                                        34                                                                                                                                1.84                                               1.18
       36                                                                        36
                                                            41         23
                                                                                                                                                                                            36                                                    1.36                                                        1.22
                                                                                                                                                                                                               Spain                                                      South Africa
                                                                                                                                                                                                                                                          1.78                                                   1.48
                                                                                                                                                         45
                                                                                                                                                                                                               France
                                                                                                                                                                                                                                                  1.39                    Japan
                                                                                                                                                                                                                                                                                                            1.06
                                                                                                                                 58                                42                                                                                    1.72                                                 1.20
                            49        47                                                                                                  46                                                          46
                 42                              43                                                        42                                                                42
       33                                                              37        33               36                    37                                                                                     Italy
                                                                                                                                                                                                                                                       1.61               China
                                                                                                                                                                                                                                                                                                        0.96
                                                            28                                                                                                                              28                                                           1.75                                                  1.32
                                                                                                                                                         15
                                                                                                                                                                       7                                       Norway
                                                                                                                                                                                                                                                          1.78            United States
                                                                                                                                                                                                                                                                                                     0.71
                                                                                                                                                                                                                                                                   2.31                                     1.09

                                                                                                                                                                                                               Netherlands
                                                                                                                                                                                                                                                       1.68               Mexico
                                                                                                                                                                                                                                                                                                     0.73
                                                                                                                                                                                                                                                                2.05                                         1.18
       Germany

                 Austria

                            Belgium

                                      Spain

                                                 France

                                                            Italy

                                                                       Norway

                                                                                 Netherlands

                                                                                                  Poland

                                                                                                           Portugal

                                                                                                                        United
                                                                                                                      Kingdom

                                                                                                                                 Turkey

                                                                                                                                          South Africa

                                                                                                                                                         Japan

                                                                                                                                                                   China

                                                                                                                                                                            United States

                                                                                                                                                                                            Mexico

                                                                                                                                                                                                     Brazil                                   1.07                                                      1.02
                                                                                                                                                                                                               Poland                                                     Brazil
                                                                                                                                                                                                                                                  1.39                                                  1.04

     Source: L’Observatoire Cetelem de l’Automobile 2023.                                                                                                                                                     Source: TheGlobalEconomy.

34                                                                                                                                                                                                                                                                                                                                       35
CARS: WHATEVER IT TAKES? 2023

     SPECTACULAR PRICE RISES                                    Fig. 25                                                                            Motorists in Japan are relatively unmoved by the
     A quick glance at diesel prices at the pump in           How much does refuelling your car cost you                                           impact of high fuel prices and it is they who report                                        PRESSURE ON CRUDE OIL PRICES
     several of the countries surveyed goes some way          per month?                                                                           the lowest estimated monthly expenditure: €92.                                              On 24 February 2022, the day on which
                                                              Average value. Share of respondents who have                                                                                                                                     Vladimir Putin announced the launch of a
     to explaining the feelings of motorists (Fig. 24).       at least one car. In €.                                                              In all other countries the figure exceeds €100, in
                                                                                                                                                                                                                                               “special operation” in Ukraine, the price of
     In Japan, price rises have indeed remained relatively                                                                                         some cases by a significant margin. In Belgium and
                                                                                                                                                                                                                                               a barrel of crude oil exceeded $100 for the
     contained. Conversely, in the United States and                                           EUROPE                 18-COUNTRY                   the United States, the leading pair in this particular
                                                                                              AVERAGE        €141        AVERAGE            €133                                                                                               first time in 7 years. After several years of
     Mexico prices have risen by more than 50%, causing                                                                                            ranking, spending on fuel totals €165 a month.                                              prices staying below $80, we appear to be
     consumers in those countries to forget how low                                                                                                In most EU countries, Portugal and Poland aside,                                            entering a highly uncertain period. Today’s
                                                               Germany                                                             153
     they still are compared to other countries.                                                                                                   monthly fuel budgets are fairly similar.                                                    geopolitical and economic cocktail could
                                                               Austria                                                            151                                                                                                          hold many more surprises (Fig. 26).
     This increase has had a direct impact on the              Belgium                                                                 165
     distances motorists drive. In France, an extra euro
                                                               Spain                                                              145
     on the price of a litre of diesel prompts motorists to
     travel 1,000 fewer kilometres per year in the short       France                                                             145                Fig. 26 / Context
     term. Over the long term, such a price increase                                                                                               Change in the price of a barrel of Brent crude oil
                                                               Italy                                                            135
     reduces the average annual distance travelled                                                                                                 In $ per barrel.
     by 7,500 kilometres.                                      Norway                                                                 158
                                                                                                                                                   120
                                                               Netherlands                                                      141
     THE IMPACT OF PRICES
     AT THE PUMP VARIES                                        Poland                                                     112                      100

     In concrete terms, the average monthly fuel               Portugal                                                    121
     budget of motorists in the 18 countries covered                                                                                                80
                                                               United
                                                                                                                            124
     by L’Observatoire Cetelem de l’Automobile 2023 is         Kingdom

     €133. Although prices have skyrocketed everywhere,        Turkey                                                      121                      60

     there are significant differences between the
                                                               South Africa                                                  132
     countries, and not always where one would expect                                                                                               40

     them (Fig. 25).                                           Japan                                                 92
                                                                                                                                                    20
                                                               China                                                      114

                                                               United States                                                           165            0

                                                                                                                                                           2000

                                                                                                                                                                  2001

                                                                                                                                                                         2002

                                                                                                                                                                                2003

                                                                                                                                                                                       2004

                                                                                                                                                                                              2005

                                                                                                                                                                                                     2006

                                                                                                                                                                                                            2007

                                                                                                                                                                                                                   2008

                                                                                                                                                                                                                          2009

                                                                                                                                                                                                                                 2010

                                                                                                                                                                                                                                        2011

                                                                                                                                                                                                                                               2012

                                                                                                                                                                                                                                                      2013

                                                                                                                                                                                                                                                             2014

                                                                                                                                                                                                                                                                    2015

                                                                                                                                                                                                                                                                           2016

                                                                                                                                                                                                                                                                                  2017

                                                                                                                                                                                                                                                                                         2018

                                                                                                                                                                                                                                                                                                2019

                                                                                                                                                                                                                                                                                                       2020

                                                                                                                                                                                                                                                                                                              2021

                                                                                                                                                                                                                                                                                                                     2022*
                                                               Mexico                                                 105

                                                               Brazil                                                 103
                                                                                                                                                   Source: EIA.

                                                              Source: L’Observatoire Cetelem de l’Automobile 2023.                                 * Forecast.

36                                                                                                                                                                                                                                                                                                                           37
CARS: WHATEVER IT TAKES? 2023

     Cutting       Taking personal
                                                                               Fig. 27                                                                              country fuel costs have caught people’s attention
                                                                             Do you take measures to reduce the cost of using                                       far more than any other factor. And, for once,
                                                                             your vehicle?

                   action
                                                                                                                                                                    Europe is where the desire to limit fuel spending
                                                                             Share of respondents who have at least one car and

     costs,
                                                                             who answered “Yes”. In %.                                                              is the most powerful. An analysis of every other cost
                                                                                                                                                                    item reveals local variations. In France, reducing
                                                                                                               EUROPE
                                                                                                              AVERAGE        57%     18-COUNTRY
                                                                                                                                        AVERAGE               60%   the amount spent on motorway tolls,
                                                                                                                                                                    a French speciality, is the second-highest priority.
                   MOTORISTS ARE TAKING MEASURES

     at any cost
                                                                              Germany                                                50
                                                                                                                                                                    In Belgium, Brazil and the Netherlands, spending
                   Faced with an economic situation that is looking                                                                                                 less on parking comes second. In Italy and Japan,
                   ever bleaker, motorists are far from complacent.           Austria                                                49                             the concern is more with bringing down the cost
                   They believe that the cost of running their vehicle        Belgium                                                         58                    of insurance.
                   is too high. 6 out of 10 are adopting measures to
                                                                              Spain                                                           59
                   limit these costs (Fig. 27). This reaction has been                                                                                              PRIORITY NO. 1:
                   particularly strong in the four countries with the         France                                                               68               DRIVE LESS TO CONSUME LESS
                   weakest economies, with three-quarters of South                                                                                                  To lower their fuel bill, motorists are willing to
                                                                              Italy                                                       57
                   Africans, Brazilians and Mexicans taking specific                                                                                                consider several options, the first being the most
                   action, and an even higher proportion of Turks.            Norway                                                          58                    obvious: driving less. 6 out of 10 people have
                   Of the remaining countries, France is home to the          Netherlands                                            49                             embraced this measure. The consensus is broadly
                   largest majority of individuals who are keen to act                                                                                              in favour of this approach, the exceptions being
                                                                              Poland                                                          61
                   (7 out of 10). The central focus placed on fuel prices                                                                                           Japan and China, where 1 in 3 and 1 in 5 motorists,
                   during the lengthy electoral period that preceded          Portugal                                                             64               respectively, are willing to consider it. Along with
                   this survey may well have had something to do              United                                                                                the South Africans, the French are the most likely
                                                                              Kingdom
                                                                                                                                    47
                   with this result. In contrast, the Japanese, British,                                                                                            to reduce the mileage they cover (69% and 65%
                   Austrians and Dutch show less gusto.                       Turkey                                                                     78         respectively).
                                                                              South Africa                                                              74
                   AN ASSAULT ON FUEL CONSUMPTION                                                                                                                   So motorists are keen to drive less, but 46% of
                   Take measures? Sure, but how? One need not be              Japan                                                 44                              respondents are also interested in comparing
                   psychic to guess where people are concentrating            China                                                           58                    fuel prices and searching for the cheapest
                   their efforts. The answer is obvious from the                                                                                                    service stations.
                                                                              United States                                              51
                   previous pages. According to 65% of respondents,
                   the main priority is to reduce fuel expenses (Fig. 28).    Mexico                                                                    74
                   The Japanese are the one exception. As we have
                                                                              Brazil                                                                    74
                   seen, they do not appear to be suffering unduly
                   from prices at the pump, while in every other             Source: L’Observatoire Cetelem de l’Automobile 2023.

38                                                                                                                                                                                                                          39
CARS: WHATEVER IT TAKES? 2023

       Fig. 28
                                                                                                                                       Paradoxically, this means that they are driving                         city dwellers. When it comes to searching for cheaper
     Which types of expense are you most interested in reducing?                                                                       further and therefore burning more fuel to do so.                       fuel and driving in a way that is more economical,
     Share of respondents who have at least one car and have taken measures to reduce the cost of using their vehicle.
                                                                                                                                       This option is much less appealing to the Turks                         the gap is smaller (4% and 6%, respectively).
                                                                                                                                       and South Africans.
                                                                                                                  Parking fees
                                                  Fuel                Upkeep                     Toll roads
                                         (diesel, petrol, etc.)   and maintenance
                                                                                    Insurance
                                                                                                (motorways)
                                                                                                                (renting a space,                                                                              Looking at the ranking of measures people are
                                                                                                              parking in town, etc.)
                                                                                                                                       An almost identical proportion of motorists (44%)                       prepared to take, switching to other modes of transport
      Germany                                     63%                  24%            24%          13%                23%              are willing to change their driving style. This                         is another fairly popular option (36%), particularly
      Austria                                     75%                  26%            24%          10%                15%              means driving more smoothly and more slowly.                            among urban dwellers (39% vs. 27% of country
                                                                                                                                       Norwegians, many of whom use electric vehicles,                         dwellers), but it is clear most of all that certain eco-
      Belgium                                     71%                  15%            17%          20%                35%
                                                                                                                                       are not particularly inclined to take their foot off                    friendly solutions are of little interest to motorists.
      Spain                                       68%                  27%            23%          18%                26%
                                                                                                                                       the accelerator or drive less aggressively (24%).
      France                                      67%                  18%            12%          37%                30%                                                                                      Choosing a more fuel-efficient vehicle appeals to
      Italy                                       68%                  26%            30%          19%                24%              On these three points, the difference between residents                 only 1 in 5 people and ridesharing to only 1 in 10.
                                                                                                                                       of rural and urban areas is significant. 61% of rural                   However, the figure for the latter reaches 1 in 5
      Norway                                      67%                  23%            15%          22%                22%
                                                                                                                                       inhabitants plan to drive less, compared with 51% of                    in Turkey, South Africa and Mexico (Fig. 29).
      Netherlands                                 68%                  15%            18%          12%                34%

      Poland                                      71%                  24%            21%          20%                22%                Fig. 29
      Portugal                                    61%                  27%            20%          28%                24%              What measures have you taken to reduce fuel costs?
      United
                                                                                                                                       Share of respondents who have at least one car and have taken measures to reduce the cost of using their vehicle.
                                                  61%                  23%            20%          12%                24%              Select one or more answers. In %.
      Kingdom

      Turkey                                      65%                  40%            19%          21%                22%                  Europe average              18-country average

      South Africa                                66%                  39%            23%          17%                19%
                                                                                                                                                        Reduced the amount                                58          Avoided using fuel-hungry                          26
      Japan                                       49%                  25%            32%          20%                24%                                  of driving you do                             54    features, such as air conditioning                         30
                                                                                                                                               Compared fuel prices and                                           Opted for a more fuel-efficient                      20
      China                                       62%                  44%            26%          17%                30%
                                                                                                                                       searched for the cheapest service                            47                                   vehicle                        23
                                                                                                                                           stations, so as to fill up in the                        46
      United States                               63%                  34%            25%          16%                16%               right place and at the right time                                                                                         11
                                                                                                                                                                                                                               Used ride sharing
                                                                                                                                                                                                                                                                  12
      Mexico                                      59%                  38%            18%          20%                28%                     Adjusted your driving style:
                                                                                                                                       driving more slowly, driving more                            45                       Converted your car
                                                                                                                                                                                                                                                             6
      Brazil                                      58%                  29%            19%          20%                43%                    smoothly, coasting, avoiding                           44                 to ethanol (FlexFuel unit)
                                                                                                                                                             traffic jams                                                    or electric (retrofit)           8
      EUROPE AVERAGE                              67%                  23%            20%          20%                26%
                                                                                                                                           Used other modes of transport                      32                    You have taken no measures
                                                                                                                                                                                                                                                         3
      18-COUNTRY AVERAGE                          65%                  28%            21%          20%                26%                                when possible                         36                                                        2

                                                                                                                                                                                                                                            Other
                                                                                                                                                                                                                                                         2
     Source: L’Observatoire Cetelem de l’Automobile 2023.
                                                                                                                                                                                                                                                         2
                                                                                                                                       Source: L’Observatoire Cetelem de l’Automobile 2023.

40                                                                                                                                                                                                                                                                               41
CARS: WHATEVER IT TAKES? 2023

                                                                                                                                                                                                          Fig. 31
     REPAIRING YOUR OWN CAR                                                              The two Iberian nations are where dealer networks      FEWER SAVINGS ARE EXPECTED
     IS ALWAYS A WINNER                                                                  have the most to worry about. DIY maintenance          ON THE INSURANCE SIDE OF THINGS                         What measures have you taken to reduce
     Focusing on upkeep and maintenance is another                                       is also popular, with 3 in 10 motorists stating that   The third stage of the cost reduction rocket, i.e.,     car insurance costs?
                                                                                                                                                                                                        Share of respondents who have at least one car and
     possible avenue for cost-cutting motorists (Fig. 30).                               they are prepared to get their hands dirty. The        spending less by making savings on insurance, is a      have taken measures to reduce the cost of using
     Car dealership networks bear the biggest brunt of                                   highest proportions of home mechanics are to be        somewhat trickier proposition (Fig. 31). It is worth    their vehicle.
     this self-sufficient approach. Of those motorists                                   found in China and the United States. A quarter        noting first of all that 24% of those who seek to cut   Select one or more answers. In %.

     who seek to lower costs, almost 4 in 10 opt to have                                 of those surveyed put their faith in an even more      costs have taken no steps in this direction, with
     their vehicle serviced and repaired by independent                                  radical solution: reducing the amount of vehicle       Europeans being the most reluctant to do so. 6%             Europe average              18-country average

     mechanics.                                                                          servicing and maintenance performed. More than         have even decided to drive uninsured.
                                                                                                                                                                                                                  Compared different
                                                                                         4 out of 10 Turks are tempted by the idea.                                                                                  insurers to find
                                                                                                                                                                                                                                                                                          31
                                                                                                                                                                                                                       the best deal
                                                                                                                                                                                                                                                                                           32
                                                                                                                                                The main way of saving money on insurance is to
                                                                                                                                                compare deals (32%), something that has been             Regularly renegotiated the                                        20
                                                                                                                                                                                                            price of your insurance                                        20
                                                                                                                                                embraced in a very uneven way. Indeed, 47% of
       Fig. 30                                                                                                                                                                                             Changed your insurance
                                                                                                                                                drivers in Turkey choose to do so, compared with        policy as soon as you found
                                                                                                                                                                                                                                                                      18
     What alternatives have you chosen to reduce the cost of upkeep and maintenance?                                                                                                                                                                                   19
                                                                                                                                                just 19% in the Netherlands. Purely for financial                      a better deal
     Share of respondents who have at least one car and have taken measures to reduce the cost of using their vehicle.
                                                                                                                                                reasons, 17% have also decided to downgrade                 Opted for a third-party
     Select one or more answers. In %.                                                                                                                                                                      policy rather than fully
                                                                                                                                                                                                                                                                           20
                                                                                                                                                their cover by going for a third-party policy.            comprehensive insurance
                                                                                                                                                                                                                                                                      17
         Europe average              18-country average
                                                                                                                                                                                                        Parked your car in a secure,                                 15
                                                                                                                                                Another route people go down is to regularly                     enclosed location                                    17
     Had servicing and maintenance performed by an independent mechanic                                                   37                    switch insurers (19%), with the Chinese and the
                                              rather than at a dealership                                                      40                                                                                Purchased tailored
                                                                                                                                                                                                                                                               10
                                                                                                                                                British leading the way in this area. Also popular          insurance (pay per mile,
                                                                                                                                                                                                                                                                12
                  Carried out servicing and maintenance yourself or had it done                                 27                                                                                                     for example)
                                                         by someone you know                                         30                         among some motorists is parking their car in a
                                                                                                                                                                                                            Increased your excess to
                                                                                                                                                secure location, which is the best way of avoiding            reduce your insurance
                                                                                                                                                                                                                                                               11
                    Reduced your vehicle’s servicing and maintenance frequency
                                                                                                           24                                                                                                                                                   12
                                                                                                            25                                  accidents (17%). Tailored insurance, including                             premium

                            Had servicing and maintenance performed unofficially                    14
                                                                                                                                                policies linked to the mileage covered, appeals to         Designated an individual
                                                                                                                                                                                                            with more experience or                            10
                                                              (undeclared work)                      16                                         12% of respondents.                                        a no-claims bonus as the                             11
                                                                                                                                                                                                                        main driver
                                                            You have taken no measures
                                                                                                               25
                                                                                                          22
                                                                                                                                                                                                           Driven without insurance
                                                                                                                                                                                                                                                        5
     Source: L’Observatoire Cetelem de l’Automobile 2023.
                                                                                                                                                                                                                                                         6

                                                                                                                                                                                                                    You have taken no                                                27
                                                                                                                                                                                                                            measures                                            24

                                                                                                                                                                                                        Source: L’Observatoire Cetelem de l’Automobile 2023.

42                                                                                                                                                                                                                                                                                              43
CARS: WHATEVER IT TAKES? 2023

     Action is                                           GOVERNMENTS MUST ACT
                                                         The main type of measure people would like

     expected from
                                                         governments to take is financial, with respondents
                                                         keen first and foremost to see fuel prices capped
                                                         (Fig. 32). 1 in 2 motorists would like to see this

     carmakers and
                                                         happen. Rural dwellers are the most likely to be
                                                         in favour of such a policy, particularly in France,
                                                         where 67% are of this view. The Purchasing Power

     governments
                                                         Act passed by the French parliament on 4 August
                                                         this year includes a measure that grants a discount
                                                         on the price of fuel, having seemingly taken these
                                                         demands into account. By contrast, motorists in
                                                         both China and Japan are less fervent in their desire
     While motorists are doing what they can to lower    to see fuel prices limited (36%).
                                                                                                                   Fig. 32
     the cost of using their vehicle, they also expect
     governments and brands to offer their support       Again on the financial front, close to 4 out of 10      In your opinion, which government measures would be the most effective in reducing the cost of buying
     on this issue.                                      motorists would like to see the government lower        and using a car?
                                                                                                                 To all respondents. Select up to two answers. In %.
                                                         the various taxes car users are charged. The Poles
                                                         are the least likely to hold this view, contrary to         Europe average              18-country average

                                                         the Brazilians.

                                                                                                                                                                                  Cap fuel prices
                                                                                                                                                                                                                                    54
                                                         Two other measures achieve almost equal levels                                                                                                                            52

                                                         of popularity: just over 1 in 5 respondents would                                                 Reduce the taxes motorists are charged
                                                                                                                                                                                                                         37
                                                                                                                                                                                                                          38
                                                         like public transport to be developed further
        1 in 2 motorists would like                      and support to be offered to those who purchase                                                                 Develop public transport
                                                                                                                                                                                                                    23
                                                                                                                                                                                                                    23
            governments to cap                           electric vehicles. Both solutions are favoured
                                                                                                                                                                                                                   21
                fuel prices.                             by urban dwellers. When it comes to improving                     Introduce or increase grants for the purchase of electric vehicles
                                                                                                                                                                                                                   21
                                                         public transport, the opinions of the Chinese and
                                                                                                                                      Offer low-cost leasing deals for low-income households
                                                                                                                                                                                                             14
                                                         Americans are at odds (36% vs. 15%). As regards                                                                                                      16
                                                         support for those who switch to an electric vehicle,
                                                                                                                                                  Lower speed limits to reduce fuel consumption
                                                                                                                                                                                                        11
                                                         Spain and Germany are at opposite ends of the                                                                                                  11
                                                         scale (31% and 14%).                                                                                                                       4
                                                                                                                                                                                           Other
                                                                                                                                                                                                    4
                                                                                                                 Source: L’Observatoire Cetelem de l’Automobile 2023.

44                                                                                                                                                                                                                                                  45
CARS: WHATEVER IT TAKES? 2023

                                                                                                                                                                                                       ACCORDING TO
                                                                                                                                                                                                       7 OUT OF 10 MOTORISTS
     CARMAKERS NEED TO PUT THEIR HANDS                                                     and 53%). The former is a nation of electric vehicle

                                                                                                                                                  THE ESSENTIAL
     TO THE WHEEL                                                                          users, the latter a land of cheap fuel.
     If motorists expect a great deal from governments,
     they also believe that brands should not simply sit                                   Another approach, which aims to reduce fuel
     back and watch, buoyed by their strong results (more                                  consumption via a different route, is to design
                                                                                                                                                                                                       buying a car is possible
                                                                                                                                                                                                       but requires financial sacrifices
     on this later). It is clear that they too will need to                                lighter vehicles (32%). This is an avenue favoured

                                                                                                                                                                               6 OUT OF 10          MORE THAN 8 OUT OF
     place an emphasis on the fuel factor (Fig. 33).                                       in Germany, which is renowned for its large

                                                                                                                                                                                 PEOPLE             10 MOTORISTS
     64% of those surveyed are of the view that                                            saloon cars.
     manufacturers should primarily be designing more
     fuel-efficient vehicles. This is an opinion shared                                    Limiting distribution costs and reducing the
     by almost twice as many people as the next                                            quantity of equipment fitted to vehicles receives
     item in the list, further evidence of the immense                                     far fewer positive responses, another sign that
                                                                                                                                                                           have decided not to      believe that running
     importance that motorists place on this issue. Not                                    manufacturers should really be directing their
                                                                                                                                                                            travel in the past      costs are increasing
     surprisingly, the Norwegians and Americans are                                        energy towards improving fuel economy, which has                                because of the cost
     the least likely to back this kind of measure (56%                                    a clear day-to-day impact.                                                       of using their car

                                                                                                                                                                                      7 OUT OF 10                          1 IN
                                                                                                                                                                                      MOTORISTS                            2 PEOPLE
       Fig. 33
     In your opinion, which measures by carmakers would be the most effective in reducing the cost
     of buying and using a car?
     To all respondents. Select up to two answers. In %.
                                                                                                                                                                                      believe their fuel                   believe car insurance
         Europe average              18-country average
                                                                                                                                                                                      budget is too high                   is expensive

                                                                                                                                                                                            MORE THAN                      1 IN
                                                Developing more fuel-efficient vehicles
                                                                                                                                         63

                                                                                                                                                                                            6 OUT OF 10                    2 PEOPLE
                                                                                                                                          64

                                                                                                                                                            3 IN 4
                                               Developing smaller and lighter vehicles
                                                                                                                         33
                                                                                                                        32

                                                                                                                                                          MOTORISTS                         MOTORISTS
                                    Limiting distribution costs, e.g., by selling online
                                                                                                              22
                                                                                                                   25

                                                                                                         18
                                                                                                                                                                                                                           want
                                                    Offering less well-equipped vehicles
                                                                                                         18                                                                                                                governments
                                                                                                   9                                                                                    want carmakers to produce          to take action
                                                                                  Other
                                                                                                  8                                                         could not live              more economical vehicles           on the price
     Source: L’Observatoire Cetelem de l’Automobile 2023.                                                                                                  without their car                                               of fuel

46                                                                                                                                                                                                                                                     47
CARS: WHATEVER IT TAKES? 2023

     OTHER MOBILITY

                                                                            2
     SOLUTIONS, USED
     IN A COMPLE-
     MENTARY WAY
     Going back in history, especially pre-history, mankind was nomadic.
     Mobility was essential to both the survival and security of humans. Since the early
     20th century, this mobility has been embodied by the automobile. Every day and during
     the weekends and holidays, cars are a central part of people’s journeys.
     However, under the direct influence of structural economic, environmental and
     societal changes, of which climate change is one of the most striking examples,
     behaviours and practices are evolving. The automobile’s influence is being eroded.
     The development of public transport and the emergence of soft mobility, particularly
     in towns and cities, are increasingly providing natural and complementary
     alternatives to cars, which are seeing their central role in society diminish.

48                                                                                               49
CARS: WHATEVER IT TAKES? 2023

     It’s hard to live
                                                                                                                      MORE AT HOME ON RURAL ROADS                                                   the smaller nations in terms of size, as illustrated
                                                                                                                      THAN ON CITY STREETS                                                          by the fact that 68% of Dutch and 60% of Belgian
                                                                                                                      The types of roads motorists use reveals a clearer                            drivers use their vehicle in both rural and urban

     a carless life
                                                                                                                      geographical divide. Indeed, the Europeans tend                               environments (Fig. 35). The countries where people
                                                                                                                      to use their cars equally in urban and rural                                  drive their cars primarily, not to say exclusively,
                                                                                                                      environments, while the rest of the world use their                           in urban areas tend to be those containing vast
                                                                                                                      vehicles mainly in towns and cities. If we consider                           expanses of land and numerous megacities, such
                                                                                                                      the world as a whole, 1 in 2 people say they use                              as Brazil and China (88% and 80%).
                                                                                                                      their vehicle in both urban and rural settings. The
                                                                                                                      countries where car use is more varied tend to be

                                                                                                                        Fig. 34

     At the heart                                                                                                     Would you say that you use your car...?
                                                                                                                      Share of respondents who have at least one car. Share who answered “Regularly” or “More often”.
                                                                                                                      Give one answer for each type of journey.

     of people’s                                                                                                          Europe average            18-country average
                                                                                                                                                                                          89%       90%

     journeys…
                                                                                                                                                                                                                                    78%       79%
                                                              daily journeys, including commuting. In these                                          75%
                                                                                                                                        71%
                                                              situations, three-quarters of people use their car.
                                                              It is worth noting that this score is down by
                                                              5 points compared to last year, presumably due to
     UNBRIDLED PRACTICALITY                                   the impact of the global health crisis, which led
     In every imaginable day-to-day situation, cars           to fewer people travelling to their workplace.
     unquestionably remain the ideal mode of transport.
     This is especially true when shopping or enjoying        With such high scores, it makes sense that the
     sporting activities (Fig. 34). 9 out of 10 respondents   differences between countries are smaller. The
     say they use their vehicle often or very often in        Austrians, the French and the British are slightly
     these cases. When they go away for the weekend           less likely than average to use their cars on a daily                 For daily journeys,                      For personal reasons and leisure purposes          For occasional journeys,
                                                                                                                               including commuting to work                       (shopping, sporting activities, etc.)     such as weekends away or holidays
     or on holiday, 8 out of 10 choose to go by car.          basis (63%, 64% and 64%), unlike the Chinese, the
     This proportion drops slightly when it comes to          Mexicans and the South Africans (90%).                  Source: L’Observatoire Cetelem de l’Automobile 2023.

50                                                                                                                                                                                                                                                             51
CARS: WHATEVER IT TAKES? 2023

       Fig. 35                                                                                                                                                                                             Fig. 36
                                                                                                                                                                                                                                                                                           THE BIGGER THE COUNTRY,
     What do you use your vehicle for?                                                                                                                                                                   How many kilometres do you estimate                                               THE MORE PEOPLE DRIVE
     Share of respondents who have at least one car. One answer only.                                                                                                                                    that you cover in your vehicle per year?                                          One measure of automobility is the distance
                                                                                                                                                                                                         Share of respondents who have at least one car. In km.
                                                                                                                                                                                                                                                                                           travelled. According to the data collected, motorists
            Mostly or exclusively in rural areas                                                                                                          11%                                   9%                          EUROPE                              18-COUNTRY                 drive an average of 13,600 km a year in the
                                                                                                                                                                                                                           AVERAGE 13,150 km                       AVERAGE 13,600 km
                                                                                                                                    EUROPE                          18-COUNTRY
            Both in an urban environment and in more rural areas                                                                                          51%                                  42%
            Mostly or exclusively in urban areas
                                                                                                                                   AVERAGE
                                                                                                                                                          38%
                                                                                                                                                                       AVERAGE
                                                                                                                                                                                               49%                                                                                         countries surveyed (Fig. 36). And once again, there
                                                                                                                                                                                                                                                                                           is a correlation between the size of the country
                                                                                                                               1             2                  2                          1              Germany                                                         13,600
                                                                                                                                                                                                                                                                                           and the number of kilometres driven. The top four
                                       7                     5                 8            5         8                                            7                     7                                Austria                                                         13,700           nations in this particular ranking are Brazil, Turkey,
       13                                                                                                        10                                                                             12
                            15                   17                                                                                                                                                                                                                                        China and Mexico, the 5th, 37th, 4th and 14th largest
                                                                    19                                                                                      18                                            Belgium                                                         13,350
                 28                                                                                                                                                                   26                                                                                                   countries in the world, respectively. Italy sits in
                                                                                                                          31       32                                                                     Spain                                                           13,350           5th place, pulling off the “feat” of surpassing the
                                                                                                    34                                            34                  36                                                                                                                   United States, the world’s 3rd largest country in
                                                            44                                                                                                                                            France                                                        12,400
                                                                                           51                                                                                                                                                                                              terms of surface area. It is interesting to note that
                                      48
                                                                                                                 48                                                                                       Italy                                                            14,150          France lies at the bottom of this ranking, with
       53                                                                                                                                                                                                                                                                                  an average of 12,400 km travelled per year.
                                                 49                 47       68                                                                                                                           Norway                                                        12,450
                            60
                                                                                                                                                                                                          Netherlands                                                    12,900
                 56                                                                                                                                                                             88        Poland                                                         12,850
                                                                                                                                                            80
                                                                                                                                                                                      73
                                                                                                                          68       66
                                                                                                                                                                                                          Portugal                                                       13,250
                                                                                                    58                                            59                  57                                  United
                                                            51                                                                                                                                            Kingdom
                                                                                                                                                                                                                                                                        12,150
                                      45                                                   44                    42
                                                                                                                                                                                                          Turkey                                                                 16,350
                                                                                                                                                                                                                                                                                           The average distance covered
       34
                            25
                                                 34                 34
                                                                             24
                                                                                                                                                                                                                                                                                             by motorists in Europe is
                                                                                                                                                                                                          South Africa                                                      14,550
                 16                                                                                                                                                                                                                                                                             13,150 km per year.
                                                                                                                                                                                                          Japan                                                        11,750

                                                                                                                                                                                                          China                                                             14,700

                                                                                                                                                                                                          United States                                                   13,700
       Germany

                 Austria

                            Belgium

                                      Spain

                                                 France

                                                            Italy

                                                                    Norway

                                                                             Netherlands

                                                                                           Poland

                                                                                                    Portugal

                                                                                                                 United
                                                                                                               Kingdom

                                                                                                                          Turkey

                                                                                                                                   South Africa

                                                                                                                                                  Japan

                                                                                                                                                            China

                                                                                                                                                                      United States

                                                                                                                                                                                      Mexico

                                                                                                                                                                                                Brazil
                                                                                                                                                                                                          Mexico                                                            15,050

                                                                                                                                                                                                          Brazil                                                                  16,500

     Source: L’Observatoire Cetelem de l’Automobile 2023.                                                                                                                                                Source: L’Observatoire Cetelem de l’Automobile 2022.

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