How Consumer Expectations are Transforming Automotive Globally

Over the past decade, the global automotive industry has transformed at an unmatched pace. This has resulted in the divergence of customer expectations in key markets, shaped by electrification, digitalization and profound changes in how people buy, use and experience their vehicles. 

Across all markets, consumers expect more digital, connected and electrified vehicles, pushing automotive leaders to prioritize customer-centricity, technological capability, and organizational agility to stay competitive.

Drawing on insights from our automotive leadership experts, we explore the shifting customer mindset across global markets, and the resulting leadership capabilities needed to thrive in one of the most fierce and turbulent industries. 

Asia 

From an Asian perspective, the dynamics of selling products across the region have undergone a significant transformation, becoming far more complex. Leaders must adapt quickly to shifting consumer preferences, regulatory landscapes and digital disruptions. Success is no longer guaranteed by scale alone; it requires innovation, strategic differentiation and a deep understanding of local market nuances. 

“This evolution also extends to talent management. Attracting and retaining top professionals has become increasingly challenging, as local candidates no longer automatically view Western multinational corporations as the most desirable employers,” commented Yan Vermeulen.  

As a result, global organizations must rethink their employer branding, invest in localized talent strategies and cultivate inclusive leadership practices that resonate with diverse workforces. 

China 

Chinese automakers are increasingly shifting their focus overseas as domestic growth slows and competition intensifies.  

“Companies like BYD, SAIC, and Geely are investing billions in overseas plants and expanding exports, including record EV shipments to South America. This global push reflects both market saturation at home and rising demand for affordable EVs worldwide, positioning Chinese brands as aggressive challengers in international markets,” explained Colin Wong. 

India 

In India, customer expectations in automotive are leaping ahead of legacy operating models. A new class of digitally fluent, safety- and value-conscious buyers are benchmarking cars against smartphones, not just rival brands.  

The market penetration of electric passenger cars has already crossed 5%, with sales roughly doubling every two years and a trajectory towards approximately 12-15% of new car sales by 2030, driven by total cost of ownership gains and urban air quality concerns.  

At the same time, connected, software-defined vehicles are moving from premium novelty to mainstream expectation, with advanced connectivity and advanced driver assistance systems (ADAS) increasingly standard in the sub €30,000 segment. 

“Leadership implications are profound,” explained Anand Holani. “Indian OEMs and suppliers need executives who can orchestrate hardware, software and ecosystem partnerships - from charging to digital services - while navigating talent wars for interdisciplinary software, data and design skills.  

“The recent EU-India trade pact, which will gradually cut tariffs on qualifying EU-built cars from today’s peaks of about 110% down towards 40% initially and eventually 10%, - under a quota framework - will intensify competition in premium segments while encouraging deeper local manufacturing, exports, and technology partnerships. Winning in India now demands leaders who are both cost-disciplined and experience obsessed, local in insight yet global in ambition.” 

Europe & Germany 

Traditionally, European buyers prioritized driving dynamics, build quality, safety and brand heritage with software and infotainment played a supporting role. Today, digital functionality has become a hygiene factor rather than a differentiator.  

Although Germans are not typically associated with strong tech affinity or exceptionally high software expectations compared to markets like China or broader Asia, German customers expect seamless and intuitive smartphone connectivity. 

A key change is the growing generational divide. Baby Boomers value clarity, stability and trust in the vehicle’s operation. Younger European customers also target their car experience against smartphones and digital platforms. They expect fluid user interfaces, over-the-air updates, and software features that evolve over time rather than remain fixed at the moment of purchase. 

“For the European automotive market, this creates a critical challenge. Hardware differentiation is diminishing, while software quality increasingly influences brand perception and purchase decisions. Delivering vehicles with unfinished or unstable software erodes trust, even among traditionally loyal customers,” explained Olaf H. Szangolies. 

France 

As the car increasingly becomes more of a service that one uses, companies and fleet operators are playing a growing role, while leasing, long-term rental and subscription models are becoming the norm. Purchasing decisions are now based more on total cost of ownership than on the purchase price alone. Vehicles are designed to be used for longer periods and more intensively, integrated into digital services such as remote maintenance or fleet management.  

At the same time, electrification, dependence on batteries and raw materials, European environmental regulations and government intervention are transforming industrial choices. Investments are now more incremental, often shared with partners and designed to preserve flexibility in the face of an uncertain future. 

“These developments require executives to acquire new technical and economic skills, particularly to manage electrification, software, new business models and regulatory constraints. Leaders must strike a balance between the long-term transformations that are required with short-term results and profitability, making major decisions with often decreasing visibility. 

“Managing social dialogue in the context of restructuring and concerns over future job security has also become essential to leading an automotive company in a permanently unstable environment,” added Sonia Florenzo. 

UK 

Similarly, passenger vehicle customer demands in the UK are increasingly shaped by the sector’s recent volatility and the accelerating shift to electrification and disruptive influence of technology. With electric vehicles now accounting for a record 41.7% of UK production, customers expect more EV choice, better range, and accessible charging.  

For leaders, given the disruptions caused by cyber incidents, restructuring and trade barriers, these shifts require a strategic focus on resilience and agility. Commented Alex Lambert: “As production in the UK is forecast to rebound in 2026, executives must accelerate EV investments while managing legacy operations and upskilling the workforce for electrification. With the sector heavily dependent on exports and vulnerable to tariff changes, leaders must engage proactively in shaping industrial and trade policy to secure competitiveness.  

“Ultimately, customer-centricity, operational adaptability, and talent transformation are becoming defining leadership priorities as the UK industry positions itself for recovery and long-term growth.” 

U.S. 

U.S. customers also prioritize digital experiences, intuitive technology, transparent value, and ongoing engagement throughout the ownership lifecycle. Buyers increasingly benchmark automotive interactions against leading consumer and technology brands, not traditional OEMs - reshaping how vehicles are designed, sold, serviced and supported. 

EV customers demand software performance, charging ecosystem support, sustainability and total cost of ownership, while traditional internal combustion and hybrid buyers expect comparable digital engagement, improved efficiency and flexibility.  

“As the market transitions, OEMs must simultaneously manage EV innovation and optimize legacy ICE platforms, creating operational and strategic complexity. Across all segments, brand loyalty is weakening as customers readily switch manufacturers when experiences fall short,” added Alex Watkins. 

Commented Catherine Black: “Equally critical is leadership’s role in shaping culture and talent. Future-ready automotive leaders are builders and integrators who foster cross-functional collaboration, attract digital and software talent and enable faster decision-making. They balance execution discipline with adaptability, empowering teams to innovate while managing risk.” 

The companies that remain relevant and lead the next era of mobility will be those led by executives who can align customer insight, technology, and organizational capability, positioning their organizations not just as vehicle manufacturers, but as trusted, innovation-driven mobility and experience providers. 

Odgers’ global Automotive Practice plays a key role in the constantly developing mobility sector by guiding companies in identifying transformative leaders, advising on effective board structures, and fostering strategic partnerships.  

Explore our ‘Leading Through Uncertainty’ collection here.  

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