20200610 Covid 19 - Global Auto Consumer Insights_Wave 2

CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of McKinsey & Company
is strictly prohibited
Updated: June 11, 2020
Results from consumer survey May 27-29, 2020
COVID-19
Auto & Mobility
Consumer Insights

McKinsey & Company 2
• COVID-19 is first and foremost a major humanitarian challenge. Thousands of health
professionals are battling the virus, putting their own lives at risk. Overstretched health systems will
need time and help to return to a semblance of normalcy.
• Solving the humanitarian challenge is, of course, priority #1. Much remains to be done
globally to respond and recover, from counting the humanitarian costs of the virus, to supporting
the victims and families, to finding a vaccine.
• This document is meant to help with a narrower goal: provide consumer insights during the
current COVID-19 situation. In addition to the humanitarian challenge, there are implications for
the wider economy, businesses, and employment. This document includes consumer insights from
a survey conducted between May 9-17 and May 27-29 in US, UK, DE, FR, IT, CN, JP.

Scope of global
COVID-19 Auto
& Mobility
Consumer
Survey
Source: McKinsey Global COVID-19 Automotive Consumer Survey
Markets
7 global markets:
US, UK, DE, FR, IT,
CH, JP
Pulse Survey
5 bi-weekly waves
Wave 1: May 9-17
Wave 2: May 27-29
Respondents
>8k respondents per
wave
1k+ respondents per
market, thereof
 1,000 mobility
participants1
 400 car purchase
intenders2
Questions
20+ questions on
mobility behavior
20+ questions on car
purchase intent
10 questions on
aftersales behavior
10 questions on
screening, demogra-
phics, COVID-19
impact
1. Demographically representative sample of respondents between age 18-70
2. Consumers having planned or planning to buy/lease a car in the next 12 months

Executive summary
Car
buying
After-
market
▪ Aftermarket appears stable as delayed maintenance and repair seems to be offset by additional/catch-up work
▪ Consumers anticipate to increase online ordering of parts and DIY work
Mobility ▪ Mobility decreased significantly among countries surveyed, but slowly picking up again in all regions
▪ Post-COVID-19, consumers do not expect big changes vs. pre-COVID-19; walking, biking, and micromobility might
potentially become more popular
▪ Consumers expect to shift from airplanes and trains for intercity travelling to an increased use of private vehicles
▪ A third of consumers values constant access to a private vehicle more than before COVID-19, esp. younger and female
consumers
▪ Car purchase intent stable at 18% below pre-COVID-19 level for new cars; -11% for used car; US, UK, JP c. -30%; DE and
FR recovering; CN at pre-COVID-19 level
▪ 20% of consumers in market pre-COVID-19 revoked purchase intent; 2/3 of remaining consumers delay purchase
▪ Higher income households seem less likely to revert purchase intent; demand for EVs and premium brands seems more
robust
▪ Average duration of delay is decreasing, with an increased share of consumers delaying up to 3 months
▪ Across markets, no significant increase of perceived discount levels observed yet
▪ Across markets, 20-40% of consumers plan to spend less – negative trend increasing in the US, while stabilizing in other
markets; shift between segments seem limited yet
▪ Digital becomes more important along the entire purchase funnel; less than a third of younger consumers prefer conducting
car sales & aftersales in person at a dealership
Source: McKinsey Global COVID-19 Automotive Consumer Survey (May 9-17; May 27-29)
AS OF JUNE 10, 2020

Car buying, aftermarket, and mobility decreased due to COVID-19 –
aftermarket less affected and likely to recover
1.Q: Before the COVID-19 / COVID-19 crisis started, how likely were you to buy a new car? 2 Q: During or after the COVID-19 / COVID-19 crisis, how likely will you be to buy a new car?
3 Q: What type of maintenance, repair and improvement work have you delayed or done additionally?
Sampled to match gen pop 18+ years within markets; individual markets weighted based on 2019 car market size, figures may not sum to 100% because of rounding
New car purchase intent1,2
Percent of respondents
69
52 53
31
31 29
Likely
Before
COVID-19
100
May 9-11 May 27-29
Very/extremely
likely
83 82
-18%
AS OF JUNE 10, 2020
Car buying Aftermarket Mobility
Plan for
next month
16%
53%
13%
70%
Up until now
17%
30%
Done additional
No changes
Delay
-4% +14%
Changes in maintenance and repair
since beginning of COVID-193
% of respondents
Change mobility mode use
% of respondents using mode ≥ once/week
Source: McKinsey Global COVID-19 Automotive Consumer Survey (May 9-17, May 27-29)
Net impact (Δ p.p. "done add." vs "delay")
78
64 69
79
37
19 23
37
14 11 12 16
Be-
fore
crisis
Next
normal
Wave
1
Wave
2
11 9 10 12
Wave
2
Be-
fore
crisis
Wave
1
Next
normal
Private car Public transportation
Shared micromobility Car sharing

Contents

Car purchase intent 18% below pre-COVID-19 level; used cars
demand stable at -11% (driven by CN)
1.Q: Before the COVID-19 crisis started, how likely were you to buy a new car? [used]
2 Q: During or after the COVID-19 crisis, how likely will you be to buy a new car? [used]
Sampled to match gen pop 18+ years within markets; individual markets weighted based on 2019 car market size
New cars Used cars
Change in %
AS OF JUNE 10, 2020
Car purchase intent vs. pre-COVID-19 level 1,2
Percent
69
52 53
31
31 29
Before COVID-19 May 9-17 May 27-29
100
83 82
-18%
57
48 43
43
40 46
May 27-29Before COVID-19 May 9-17
89
100
89
-11%
w/o China 78%
Very/extremely likelyLikely

New car purchase intent ~-30% vs. pre-COVID-19 in US, UK, JP; DE
and FR recovering; CN -9% vs. pre-COVID-19
1. Q: BEFORE the COVID-19 crisis started, how likely were you to purchase or lease a new or used vehicle within the next 12 months?
2. Q: Given TODAY’S situation, how likely are you to purchase or lease a new or used vehicle within the next 12 months?
Purchase intent new cars vs. pre-COVID-19 level 1,2
Percent
74
30
19
38
31 36
26
32
34
26
30
27
Mar
28-
29
Apr
2-5
Before
COVID-
19
Apr
16-
19
May
9-11
May
27-
29
100
62
53
64
60
64
-36%
Likely Very/extremely likely Change in %
73
41
48
27
22
22
100
70
Before
COVID-
19
63
May
9-11
May
27-29
-30%
FranceGermany ItalyUKUSA China Japan
70
43
34 34
46
58
30
32
25
34
33
26
Before
COVID-
19
Apr
16-
19
Mar
28-
29
Apr
2-5
May
11-
13
May
27-
29
100
75
58
68
79
84
-16%
61
22 24 20
37 36
39
33
40
28
37 39
Mar
28-
29
Before
COVID-
19
Apr
16-
19
Apr
2-5
May
11-
13
100
May
27-
29
55
64
48
75 75
-25%
AS OF JUNE 10, 2020
73 68
60
27
30
31
Before
COVID-
19
May
14-15
91
May
27-29
100 98
-9%
60
37 37
40
38 36
Before
COVID-
19
May
14-15
74
May
27-29
100
73
-27%
67
38
28
16
46
59
33
20
23
38
44
37
57
Before
COVID-
19
Apr
2-5
Mar
28-
29
Apr
16-
19
May
15-
17
May
27-
29
100
51 54
89
96
-4%

Used car purchase intent decreased stronger than NC in DE and FR;
less decrease in US
1. Q: BEFORE the COVID-19 crisis started, how likely were you to purchase or lease a new or used vehicle within the next 12 months?
2. Q: Given TODAY’S situation, how likely are you to purchase or lease a new or used vehicle within the next 12 months?
3. For wave 2 included consumers interested in both new and used cars
4. Results less significant as small sample size
Change in %
FranceGermany ItalyUKUSA China3 Japan4
AS OF JUNE 10, 2020
Purchase intent used cars vs. pre-COVID-19 level 1,2
Percent
51
24
37
24 30 32
49
41
48
35
30 27
59
Before
COVID-
19
May
27-
29
Mar
28-
29
Apr
2-5
60
Apr
16-
19
May
9-11
100
65
85
59
-41%
Likely Very/extremely likely
47
39 37
53
34 39
77
Before
COVID-
19
73
100
May
9-11
May
27-29
-23%
65
37 35
23
31 34
35
48
21
58 39 37
Before
COVID-
19
May
27-
29
Mar
28-
29
May
11-
13
69
Apr
2-5
Apr
16-
19
100
85
56
81
71
-29%
43
16
26
16
30
23
57
43
50
35
41 54
Apr
2-5
Before
COVID-
19
Mar
28-
29
Apr
16-
19
100
May
11-
13
May
27-
29
60
76
51
72
77
-23%
64 62
50
36 39
52
Before
COVID-
19
May
14-15
101
May
27-29
100 102
+2%
54
39
50
46
65
50
104
May
27-29
Before
COVID-
19
May
14-15
100100
0%
53
35
28 25
36 32
47
38
39 48
53
46
Before
COVID-
19
Mar
28-
29
Apr
16-
19
Apr
2-5
May
15-
17
May
27-
29
100
73
67
73
89
78
-22%

US and Asia consumers express increased preference for used cars
Purchase intent for new car vs. used car vs. considering both 1
Indexed to pre-COVID-19 value (=100)
AS OF JUNE 10, 2020
1. Weighted based on 2019 new car sales
50
80
70
60
100
110
90
Pre-COVID-19 Wave 2Wave 1
New car Considering bothUsed car
70
50
60
80
90
100
110
Pre-COVID-19 Wave 1 Wave 2
50
60
100
90
70
80
110
Pre-COVID-19 Wave 1 Wave 2
US Europe Asia

Across markets, higher income households seem less likely to
revise their purchase intent
Source: McKinsey Global COVID-19 Automotive Consumer Survey (May 27-29); respondents who didn't share the income category were excluded
AS OF JUNE 10, 2020
FranceGermany ItalyUKUSA China Japan
53
70 73
47
30 27
Cancellation
Low Medium High
No cancellation
Cancellation by household income, Percent of respondents (100% = Planned to buy pre-COVID)
58 57 58
42 43 42
Low Medium High
61
71
86
39
29
14
Low Medium High
73 74
92
27 26
8
Low Medium High
50
66
84
50
34
16
HighLow Medium
80
90 91
20
10 9
MediumLow High
68 72
79
32 28
21
HighLow Medium

Among surveyed countries, demand for EVs and premium brands
seems more robust
Percent of initial purchase intenders that now have no further intent
AS OF JUNE 10, 2020
Note. Excluding mHEV; respondents count into each category they were interested in (multiple answers possible)
Combustion
engine
1820
-1
Hybrid
17
20
-3
15
Wave 1 Wave 2
EV
19
-3
19 18
Premium
-1
Volume
Wave 1 Wave 2
22 22
0
Cancellation by engine preference Cancellation by brand preference
Percent of initial purchase intenders that now have no further intent

Average duration of delay is decreasing, with an increased
share of consumers delaying up to 3 months
1. Q: BEFORE the COVID-19 crisis started, when would you have likely made your next vehicle purchase (or lease)?
2. Q: Given TODAY’S situation, when do you think you are likely to make you next vehicle purchase (or lease)?
3. Question under footnote 1 and 2 answers “No longer planning on buying or leasing a vehicle” and “Not sure” have been excluded
AS OF JUNE 10, 2020
Duration of delay1,2,3
39
51
48
38
10 9
7 to 9 months
May 9-11
3 2
May
27-29
10 months or more
4 to 6 months
Up to 3 months
JapanChinaItalyFranceGermanyUKUS
34
43
48
44
14
13
4 1
May 9-11 May
27-29
46 45
40 41
13 12
1
May
11-13
2
May
27-29
44
49
42
37
11 12
3
May
15-17
3
May
27-29
31 33
48 45
18 17
May
27-29
3 4
May
11-13
57 55
36 35
6 9
May
15-17
1 1
May
27-29
40
35
38 46
19 16
May
15-17
3 3
May
27-29

Consumers in DE, FR, IT seem to be holding out for subsidies
while health concerns decline
1. Q: Which of the following reasons best describes why you have decided to delay your purchase (or lease) of a new vehicle? Please select one
AS OF JUNE 10, 2020
Purchase delay reasons 1
10 9
45
39
45
52
May
27-29
May 9-11
Economics
Health
Subsidies
5
10
47
46
48 45
May 9-11 May
27-29
21 19
29
26
51 55
May
11-13
May
27-29
12
21
35
30
54
49
May
15-17
May
27-29
14
22
31
22
55 56
May
11-13
May
27-29
6 9
40
39
54 52
May
15-17
May
27-29
6
36
33
58
63
May
15-17
4
May
27-29

Consumers do not observe increased discount levels yet
18
24
31
26
32 34
11
10
7 5
May 9-11 May
27-29
Slightly lower
Significantly higher
Slightly higher
In line
with pre-crisis
level
Significantly lower
Observed discount levels compared to pre-crisis levels1, Percent of respondents
1. Q: Have you observed any changes in offered price discounts for purchasing or leasing a new or used car over the last 2 weeks compared to levels before the COVID-19 outbreak?
Note: Answer “I did not observe/research any price discounts” excluded
AS OF JUNE 10, 2020
18 14
33
31
34
41
11 13
4 2
May 9-11 May
27-29
13 11
23
20
44
49
15 18
6 3
May
27-29
May
11-13
16 17
29 23
38
41
13 16
4 4
May
11-13
May
27-29
18 15
23 27
31 33
19 15
8 10
May
27-29
May
15-17
8 6
29
22
37
40
21
29
5 4
May
15-17
May
27-29
6 6
18 17
58 60
16 14
2 3
May
27-29
May
15-17
Net score
Δ Higher vs lower
-35-31 -30-37 -6-65-11-10-16 -18-14 -20-28

A third of consumers plans to spend less on their next vehicle
than planned before crisis – negative trend increasing in the
US, while stabilizing in other markets
Change in planned vehicle spending vs. pre-COVID-19 1
1. Q: Given TODAY’S situation, how did the total value of the vehicle you are considering purchasing or leasing changed?
2. Includes Germany, UK, France and Italy
Source: McKinsey Global COVID-19 Automotive Consumer Survey (May 27-29)
AS OF JUNE 10, 2020
22
29
May 9-11 May 27-29
+7 p.p.
13 11
-1 p.p.
65 60
-5 p.p.
Increase
No change
Decrease
31 27
May 9-11 May 27-29
-4 p.p.
6 6
0 p.p.
63 66
+3 p.p.
38 36
May 9-11 May 27-29
-2 p.p.
14 13
-2 p.p.
47 51
+4 p.p.
Net score
Δ Increase vs
decrease
-9 -18 -25 -21 -24 -23
US Europe Asia

34
40 39
22
23 28
45
37 33
By phone
with dealer /
E-mail or fax
to dealer
In person at
car dealership
May 27-29Previous
purchase
May 9-11
Website /
Mobile app
Preferred interaction mode for purchasing next car and for last car purchased 1,2
1. Q: When you LAST TIME purchased or leased a car/serviced a car, which of the following sources/channels did you predominately use?
2. Q: For your PLANNED/NEXT vehicle purchase/leased/car service, which of the following sources/channels would you prefer to use?
Preference for digital/remote channels is increasing in US
and Europe, while already being more common in Asia
31 34 35
21
22 24
48 43 41
May 27-29Previous
purchase
May 9-17
38 39 39
34 34 32
29 27 29
May 27-29Previous
purchase
May 14-15
US Europe Asia
AS OF JUNE 10, 2020

Contents

Changes in maintenance and repair since beginning of COVID-191
% of respondents
On average, ~15% of consumers plan to postpone maintenance &
repair, a quarter plan to do additional work
AS OF JUNE 10, 2020
1 Q: What type of maintenance, repair and improvement work have you delayed or done additionally?, figures may not sum to 100% because of rounding.
2 Net impact is calculated by subtracting the % of respondents stating they have delayed service & maintenance work from the % of respondents stating they have done additional maintenance work
Net impact2
+39
- 6
- 327%43%30%Plan for next month
Up until now 10%16% 74%
Delay No changes Done additional
Up until now
28%52%20%Plan for next month
14%73%13%Up until nowUp until now
+39
Plan for next month 7% 26%67%
85%Up until now 7% 9%Up until now
32%51%17%Plan for next month
Up until now 16% 11%74%Up until now
50%12% 38%Plan for next month
13%56%31%Up until nowUp until now
33% 49%18%Plan for next month
34%34%Up until now 32%Up until now
19%70%Plan for next month 11%
Up until now 6%84%10%Up until now
+39;
+1
+39
+2
+39
- 5
+39
- 17
+39
+2
+39
- 4
+39
+8
+39
+19
+39
+16
+39
+25
+39
+31
+39
+8
Net impact
Wave 12
+39
- 6
- 11+39
+39
- 3
+39
+1
+39
- 6
+39
- 18
+39
+3
+39
- 5
+39
+5
+39
+16
+39
+15
+39
+24
+39
+34
+39
+10

Contents

McKinsey & Company 21Source: McKinsey Center for Future Mobility
Since the COVID-19 outbreak, mobility decreased significantly in
countries surveyed, with trips slowly picking up again in all regions
1. Q: Given TODAY’S situation, how has your mobility changed since the outbreak of COVID-19?
2. US, UK, Germany, Italy, France, China, Japan
3. Total (significant) mobility decrease Wave 2 vs. Wave 1
Aggregated2
-26 -28
-46 -39
272
Wave 1
6
Wave 2
+5
Results of wave 1 (May 9-18) and wave 2 (May 27-29)
Mobility pattern changes (number and length of trips) since the outbreak of COVID-191
Number of respondents, in percent
Significantly increase
Significantly decreaseSlightly increase
Slightly decrease
▪ Currently 67%
decrease in
mobility pattern,
recovering at 5
p.p. vs. two
weeks ago
▪ Germany and
China show the
highest
recovery rate,
while the US is
still close to
levels of the
COVID outbreak
x Mobility recovery3, in p.p.
-28 -28
-41 -39
2
Wave 1
34 7
Wave 2
+2
-18 -19
-53 -50
2
Wave 2
24
Wave 1
4
+4
-29 -29
-33 -26
Wave 2
413
Wave 1
1
+7
-21 -29
-66 -53
22 1
Wave 1
2
Wave 2
+5
-20 -25
-58 -50
224 4
Wave 1Wave 2
+3
18 22
-30 -33
-39 -29
3
Wave 1
3
Wave 2
+7
-33 -31
-30 -26
4 224
Wave 1 Wave 2
+6
AS OF JUNE 10, 2020

Walking / biking and micromobility potentially becoming more
popular in the modal mix of the "next normal"
Source: McKinsey Center for Future Mobility
Usage of transportation modes on a regular basis1,2
Number of respondents stating at least weekly, in percent
1 Q: Before/today/when you return to "next normal", how often did/do you/do you expect to use the following modes of transportation?
2. Once or more than once per week, aggregated results from US, UK, Germany, Italy, France, China and Japan
78
64
69
79
Before crisis
Wave 1
Return to
"normal life"
Wave 2
+5
37
19
23
37
+3
61
57
60
67
+3
14
11
12
16
+1
11
9
10
12
+1
14
10
12
15
+1
Private car Public transport
Walking or biking
with private bike
Micromobility (e.g.,
e-scooter, e-bike)
Car sharing
(e.g., ShareNow)
Ride hailing (e.g.,
Uber, Lyft, taxis)
Trends
emerging
in the
“next
normal”
Potential long-lasting effects as cities
might extend measures beyond lock-
down to reduce traffic and air pollution
Potential recovery
as curfews are
lifted; strict
hygiene protocols
to be installed
As ride hailers take physical
measures to reduce risk of infection
(e.g. protective shields), demand will
likely rebound again
Car usage may decrease
in city centers as cities
disincentivize private
vehicle ownership (e.g.,
inner-city bans,
congestion charges)
▪ Respondents
expect an
increased
usage of
walking /
biking and
micro-
mobility when
returning to
“normal life”
▪ Private car
usage picked
up fastest
over the last 2
weeks, in
absolute terms
▪ Walking /
biking almost
back to a pre-
crisis level
x Mobility recovery, in p.p.
Mobility usage pre-
vs. post-crisis
Mobility usage
during crisis
AS OF JUNE 10, 2020

In countries surveyed consumers expect to shift from airplanes and
trains for intercity travelling to an increased use of private vehicles
Change of mode for intercity travelling when returning to "next normal" vs. habits before COVID-19 outbreak1
Number of respondents2, in percent
Airplane
Train
Private
vehicle
1 Q: After you return to next normal, how do you think travelling between cities will change compared to before the COVID-19 outbreak?
2. Consumers that have not used this mode of transportation before the COVID-19 outbreak excluded of scope of country
27
-40 -33 -42 -31 -42 -45 -49 -39
1417 17 141412 17
Increased usage Decreased usageResults of wave 1 (May 9-18) and wave 2 (May 27-29)
Aggregated
result3
30
-33 -31 -34 -20 -34 -32 -40 -33
131718 1618 18 14
32 31 24 23 41 28
50
27
-9-10-14-13 -12 -14 -17-16
AS OF JUNE 10, 2020

The importance of direct access to a private vehicle has increased,
especially amongst younger and female consumers
Willingness to pay for electric vehicles (in percent relative to ICE)
By age
Importance of constant access to a private vehicle1
Number of respondents, in percent
1. Q: How has the importance of having constant access to a private vehicle changed since the COVID-19 outbreak?
2. Aggregated results from US, UK, DE, IT, FR, CH, JP
32
-17
Increased usage Decreased usage
Aggregated
result2
42
33
24
-19 -16 -18
18-34 35-54 55-70
By gender
34 30
-17 -18
MaleFemale
▪ Majority of
respondents value
constant access to
a private vehicle
more than before
the COVID-19
outbreak
▪ Increased
importance of
constant access to a
private vehicle with
highest relevance
amongst younger
and female
consumer
AS OF JUNE 10, 2020

20200610 Covid 19 - Global Auto Consumer Insights_Wave 2

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