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Why Customer-Focused Innovation Research Is Essential for Auto Brands

Paul Donagher, Radius Insights, Radius Global Market Research 2021/08/paul-donagher-bio.jpg

by Paul Donagher

Director, Client Services

Auto brands that prioritize customer-focused Innovation research will be better positioned to meet current consumer needs and anticipate future trends.

 

Deloitte’s 2025 Global Automotive Consumer Study highlights the wide range of challenges facing automotive brands this year, from shifting consumer preferences to infrastructure gaps and pricing pressures. These insights reinforce what we’ve been addressing with our clients across the auto industry: the need to stay closely aligned with customer expectations and evolving attitudes.

One of the most effective ways to harness these insights is by strengthening your commitment to innovation research. A strong program helps brands capture consumer sentiment and seamlessly integrate feedback into product design, branding, and messaging strategies, ensuring offerings remain relevant and competitive.

Customer-focused innovation research brings clarity to action plans.

Deciding how to approach electric vehicles (EVs) is a top issue highlighted in Deloitte’s report. Consumers are showing growing interest in hybrids and range-extender vehicles as the industry navigates challenges like charging infrastructure, energy pricing, and affordability. Attitudes vary widely by age group and global region, making it harder for brands to make confident, strategic decisions.

There are times when innovation research can bring quick wins for brand teams. Because attitudes are shifting about EVs, brands may have the right product but they’re simply not communicating effectively. Customer input can guide brand teams in recalibrating messaging to highlight the features that matter most—like fuel efficiency, lower emissions, or convenience—without increasing costs.

Consumer check-ins help brand teams identify trends that can help them with long-term planning. We’ve had success developing customer-focused Innovation research to drill into how car owners feel about EVs—which design elements or features will motivate them to purchase in the future, or what might prevent them from purchasing? Regular check-ins with consumers can help teams see trends that will impact long-term planning.

Help your targets see the value in your offering.

It’s no surprise that consumers are price-conscious right now, but Deloitte’s report reveals they are also focused on overall value. Consumers are looking for the sweet spot where price, product quality, and performance meet their specific needs.

Our Innovation Ecosystem leverages agile product development and concept testing to help brand teams quickly test and refine features based on consumer feedback. This iterative process ensures products align with expectations for quality and performance. Combined with input from customers on the most desirable features, and price points, we can then consider specifics in the current market landscape to uncover competitive advantages and unmet customer needs—fueling product innovations that directly impact purchase decisions.

Think “Glocal” for precision action planning.

Deloitte’s report highlights striking differences in regional consumer behavior. For example, consumers in India and China are trending toward purchasing vehicles and related services—like insurance—directly online. Preferences for connectivity features also vary across regions. Additionally, Mobility as a Service (MaaS) is gaining traction globally, especially among younger consumers.

We help brand teams clarify their global objectives and refine innovations for each market. With on-the-ground insights worldwide, we can identify regions most likely to embrace new innovations—and those that may resist them—helping teams develop more effective activation strategies.

Depending on your perspective, this is either a frustrating or an exciting time to be in the auto industry. No one has a crystal ball, but teams that stay connected to their customers and commit to ongoing dialogue will foster an agile, innovative culture—positioning themselves to capture market share as new trends emerge.

 

How could your team leverage insights from drivers? Contact us to develop a plan.

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