Changing Expectations of a Luxury Automobile?

An article in the WSJ about the ongoing Frankfurt Motor Show discusses the seemingly conflicting consumers demands that luxury automakers are attempting to fulfill: desire for the best performance possible yet also a growing demand for greener, more enviro products.
It’s mentioned once in passing in the article but I think for us strategists the really interesting thing to ponder is whether or not the kids of today will age into the current automotive mindsets, or will they redefine them all together? I recently shared with you data on how fewer teens are even getting their licenses and the continued march towards megacities means cars become more of a burden to most – not the ultimate “freedom-defining” purchase they once were.

It’s a delicate balancing act, but one the luxury car makers are forced to perform as they figure out what the customer of the future will want. Volkswagen AG luxury brand Audi, for example, invited academics and industry experts to a conference Monday to discuss the challenges of a near future when 70% of the world’s people will live in congested mega-cities. They also predict attitudes about car ownership will be upended by a generation that cares more about slick smartphone apps than 0-to-60-miles-per-hour times.

The dichotomy is on view on BMW’s show stand, which features an electric BMW i3 concept car made of aluminum and carbon fiber with the motor over the rear axle and a top speed of 93 mph. Nearby is parked a new edition of the auto maker’s mighty M5 super sedan, with a 560-horsepower petroleum-fueled V-8. BMW stresses that the new M5 is both more powerful than its predecessor and 30% more fuel efficient.

Audi is giving prominence to small electric concept cars. It’s also emphasizing the idea that in the future, what will matter to its customers is more than a car, but “mobility,” a concept being bandied about at the Frankfurt show that emphasizes giving consumers information about how to get around in crowded cities, locate parking spaces and use smartphone apps to arrange car-sharing.