Dr. Marco Hecker Chief Strategy Officer, Principal & Partner, Deloitte China

1. Perspectives from the Global
Automotive Consumer Study
Dr. Marco Hecker
Sydney, August 8th, 2019
Future of Mobility through
the Consumer Lens

2. 2CONFIDENTIAL; © Deloitte 2019 Copyright.
Objectives of today’s presentation
Today's discussion aims to share most recent insights on consumer perspectives on
CASE and discuss near and long term implications on customer experience
Share insights from the Global Automotive Consumer Study with focus on Australia
in global context
1
Provide a perspective on future evolution of automotive and mobility trends in the
long term
2
Discuss future value shifts and implications for automotive brands and marketers
3

3. 3CONFIDENTIAL; © Deloitte 2019 Copyright.
Key insights from our Global Automotive Consumer Study over the years
For a decade, Deloitte has been exploring consumers’ changing automotive
expectations and the evolving mobility ecosystem
Source: Deloitte Global Automotive Consumer Study

4. 4CONFIDENTIAL; © Deloitte 2019 Copyright.
Summary growth perspective and automotive trends
Driving automation, connectivity, shared mobility and changing consumer relationship
to automotive brands are key trends to be addressed in the slowing automotive market
Mobility
• Ride-hailing usage doubled in Australia in the past 2 years to
> 4 Million active users
• Australia is becoming the battleground for global mobility champions
with Didi, Uber, Ola, Bolt) and GoCatch fighting to for market share
New Retail
• While own vehicle is still the dominant transportation mode,
Australians are on the fence of buying directly from the OEM
• Individualized approach, building a brand community and re-thinking
the consumer journey will be critical going forward
Connectivity
• High demand for connected experience from consumers –enhance
the vehicle attractiveness and in-car experience
• Brings tremendous data to the OEM to improve their operation and
introduce digital services as a new source for revenues
51% of consumers
are interested in
buying the car
directly from the OEM
43% of consumers
use ride-hailing on a
regular basis
52% of consumers
think it is important
to have the same
tech interface across
multiple vehicles
Assisted &
Autonomous
Driving
• ADAS & advancement of full autonomy will bring value to both
individuals and public
• AD development in Australia is likely to arrive later than major
markets like China and US
Only 46% of consumers
still having concerns
about safety of AVs
46%
25%
83%
52%
43%
75%
51%
82%
Source: Deloitte Global Automotive Consumer Study 2019, Deloitte research and analysis

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Overview findings on AV – Global Automotive Consumer Study
Warming trend regarding autonomous vehicles has stalled with China consumers still
having least safety concerns, followed by Australians embracing the technology
Percentage of consumers who agree
that autonomous vehicles will not be safe
% of consumers feeling that media reports of accidents
involving AVs made them more cautious of the tech (2019)
47%
46%
Germany
US
Japan
Rep. of Korea
India
50%
49%
China
50%
48%
57%
25%
54%
47%
47%
45%
26%
Australia
2018
2019
Q3: To what extent do you agree or disagree with the following statements?
Sample size: Germany=1,733 [2019], 1,705 [2018], 1,574 [2017]; US=1,720 [2019], 1,730 [2018], 1,634 [2017]; China=1,735 [2019], 1,724 [2018], 1,633 [2017]; India=1,725 [2019], 1.728
[2018], 1,686 [2017]; Japan=1,717 [2019], 1,680 [2018], 1,656 [2017]; South Korea=1,715 [2019], 1,722 [2018], 1,633 [2017]; Australia = 1,223 [2019]
(N/A)
Rep. of Korea
China
India
US
68%
Australia
64%
Germany
Japan
65%
64%
60%
56%
50%
Source: Deloitte Global Automotive Consumer Study 2019 & 2018

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Decision factors for AV adoption
It’s about convenience and safety: Australian consumers are strongly driven by freeing
up time and safety considerations as it comes to vehicle automation
% consumers who agree that
Travelling in a fully self-driving
car will be a positive experience
46%
Fully self-driving cars
will not be safe
A fully self-driving car
will free up my time
so I can focus on other activities
47%
46%
Note: Percentage of respondents who strongly agreed or agreed have been added together;
Sample size: Australia = 1,223
Online shopping
Sleeping/resting
Eating a meal
Communicating via phone, text or email
Reading
Other
21%
Working (e.g., using a laptop)
Watching a movie/streaming video content
Gaming
51%
38%
37%
32%
30%
29%
20%
14%
Activities consumers engage in an autonomous vehicle
23%
3%
No oversight
63%
Some oversight
Significant
oversight
Don’t know
11%
Expected level of government oversight (% of consumers)
Source: Deloitte Global Automotive Consumer Study 2019

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Consumer attitude towards automation
Consumers are still concerned to live, walk and drive in areas where AV are being
tested and expect new companies to bring full automation to the market
Percentage of Australian consumers who are concerned about…
Q4: How concerned are you with each of the following scenarios?
Note: Percentage of respondents who are very concerned or concerned have been added together;
Sample size: Australia= n=1,252; China =1,760
Type of company consumers trust the
most to bring fully autonomy to market
20%
58%
25%
22%
35%
36%
4%
A new company
that specializes in
self-driving vehicles
Other
Existing tech
company
Traditional
car manufacturer
65%
70%
63%
59%
58%
55%
53%
51%
46%
Commercial vehicles (e.g., large tractor trailer
trucks) operating in a fully autonomous mode…
Personally riding in a fully autonomous aerial
passenger vehicle (i.e., a flying passenger…
Fully autonomous aerial passenger vehicles
operating in urban airspace to reduce roadway…
Being a pedestrian in an area where fully
autonomous vehicles are being tested
Driving your vehicle in an area where fully
autonomous vehicles are being tested
Fully autonomous “robo-taxis” operating in pre-
determined urban areas
Personally riding in a fully autonomous vehicle
Fully autonomous vehicles being tested on the
public roads where you live
Source: Deloitte Global Automotive Consumer Study 2019

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Overview findings on connectivity
Australians are more open towards connectivity than Japanese and Germans but
haven’t yet reached the level in China; Built-in solutions most preferred by the driver
% consumers who feel increased connectivity will be beneficial
Note: Percentage of respondents who are very concerned or concerned have been added together;
Sample size: Australia = 1,188; Germany=1,688; US=1,689; China=1,721; India=1,693; Japan=1,659; South Korea=1,701
Preferred type of technology interface in
Australia by type of vehicle occupant
30%
55%
70%
45%
Built-In
(Factory Accessory)
Driver Passenger
Brought-In
(Smartphone
Compatibility)Germany
Australia
36%
China
US 47%
India
79%
Rep. of Korea
Japan
76%
60%
44%
35%
Source: Deloitte Global Automotive Consumer Study 2019

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Willingness to pay for connectivity
Like in China, the globally most advanced connectivity solutions market, Australians
are willing to pay for connected technologies – subscription however is not an option
Q25: How much more would you be willing to pay for a vehicle that had the following connectivity technologies?
Sample size: n=746
13%
12%
10%
12%
51%
51%
50%
47%
47%
44%
36%
37%
40%
41%
43%
46%
Automatically find and pay for parking
Ability for your vehicle to communicate
with other vehicles and road
infrastructure to improve safety
Ability for the vehicle to
self-diagnose problems and
schedule service appointments
Sensors in the vehicle’s cockpit
to detect and act on health
and wellness issues
Ability to connect to the internet
to facilitate infotainment and personal
communication activities
10%
Communication technology
to optimize traffic flow
10%
≤1,500
A$
>1,500
A$
0
A$
Up front as
part of the
vehicle
purchase
price
62%
Charged on a
per use basis
27%
As part of a monthly service
to which I subscribe
11%
How would
consumers prefer to
pay for additional
connectivity
technologies?
Source: Deloitte Global Automotive Consumer Study 2019

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Overview ride hailing usage and market dynamics
Ride-hailing is reaching acceptance levels of USA as Australia becomes a battleground
for mobility giants like Didi & Uber– new business opportunities evolve for OEMs
8% 12% 14%
26%
11% 18%
34%
49% 46%
69%
64%86%
80%
61%
43% 42%
17%
10%
Australia
5%3%
USAKoreaJapan
2%
Germany China India
Rarely
Never
1+ per week
Frequency of ride-hailing usage by country (2019)
Q25: How often do you currently use ride-hailing services?
Sample size: Australia = 1,252; : Germany (DE)=1,773; US=1,750; China (CN)=1,760; India (IN)=1,755; Japan (JP)=1,770; Rep. of Korea (KR)= 1,731
Market dynamics in Australia
• Revenue in the ride-hailing segment amounts to ~ US$ 1.6 bn
in 2019 in Australia and expected to show a compound annual
growth of ~14% in the next 5 years (to ~US$2.7 bn in 2023)
• User penetration is further expected to grow by over 40% in
the next 5 years
• Australia is becoming the battleground for global mobility
champions with Didi, Uber, Ola, Bolt and local GoCatch fighting
to for market share and driver supply
• Getting to the destination as quickly as possible is most
important aspect of mobility (41% of customers)
• New B2B2C customer groups emerging with opportunity to
tailor products and services to mobility fleet
• New data sources to characterize customers & users through
partnerships with ride-hailers
Source: Deloitte Global Automotive Consumer Study 2019, Statista, Deloitte research and analysis

11. 11CONFIDENTIAL; © Deloitte 2019 Copyright.
Automotive Retail Trends
While automotive retail is transforming, traditional retailers are updating channels,
formats and customer interaction, to adapt to ever-changing customer behavior
Source: Deloitte research & analysis
Early
20th
Century
Retail 1.0
“Consumer will
come to us”
Late 20th
century
Retail 2.0
“Customer use
various channels
to shop”
Early 21st
century
Retail 3.0
“Product & service
always within
consumer’s easy
reach”
Retail Format
• Introduce new retail formats to meeting
ever changing customer needs
• Provide identical brand experience at
most important “Moments of Truth”
“Immersive Experience”
Customer Interaction
• Realize customized interaction with
consumers in the full lifecycle
• Utilize digital tools to improve
customer experience
“Customization”
Channel
• Direct customer facing sales models by OEM
• Seamless integration of different channels and
interaction
“Seamless Experience”
1
2 3
Channel
Retail
Format
Customer
Interaction

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Examples game changing approaches in new retail in China
Example China: Changing consumer behavior is evolving in new approaches to
automotive retail already today
Sales
Aftersales
Lifestyle
Refined Sales
Format
Independent
Aftersales Format
Lifestyle &
Social Space
DescriptionReasonsCase
Exhibit Experience
Lead
collection
Test
Drive
Handover
• Different location and channels
for different functions, to improve
experience and save cost
• Ensure optimal customer experience
in each sales link via more refined
and more professional service
• Sales functions to be in cities,
aftersales functions in suburbs
• Improve operation efficiency to
reduce cost per vehicle
Configu-
ration
• Improve customer experience,
brand image and influence
• Obtain innovative service and
derivative service revenue
4S store：
sales function
4S store /
handover
center:
handover
City boutique/
experience
center：pre-
sales leads
Sales process function
refine and update
Separation and independence of
sales and aftersales functions
4S
Store
Maintenance
center
Sales Aftersales
City
boutique/
experience
center
Owner social
platform
Online
Offline
Online credit
mall
Social and
sharing space
Configu-
ration
Test drive
booking
Finance
product
Deposit
payment
Remote
control
Charging
service
Mobility
Mainten-
ance
Event
reservation
Owner
Forum
Comment &
feedback
E-
commerce
Pay Sign
contract
1 2 3
4 APP Integration and
Connection a b
c
d
Source: Expert interviews, Deloitte research & analysis

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Example: MONET (Toyota x Softbank) building a consortium for “Mobility for all”
Alternative revenue streams are being created by expanding the mobility ecosystem,
using the vehicle as a platform and bundling adjacent services through partnerships
Education
Retail
Real Estate
___/ Constructions
Finance
Catering
Healthcare
Entertainment
TravelsInformation Services
Logistics
* Total of participating companies: 276 (as of June 2019)
Source: MONET website, Deloitte research & analysis

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Vehicles redefined by CASE innovation
CASE trends will transform cars into ‘high-performing mobility infrastructure’ in the
long run
CASE Mobility Image
Distinguishing use
and ownership
“From personal
cars to means of
transportation”
Increased utility
“Working Car”
“Trains
on the road“
DefinitionofCars
User
Owner
Utilization
rate
Power
source
Ownership
Connected
Autonomous
Share & Services
Electrification
CASETrend
▼2025年以降：高速道で完全自動運転
（官民ITS構想・ロードマップ2019）
Short-Term Mid-Term Long-Term
Corporate
Individuals
Private
5% approx. 9.6% 56%
ICE HVs (some EVs) EVs
▼2020：All passenger vehicles to be equipped
with in-car connected device (e.g. Toyota)
▼2009：Uber launch
▼2030：HV30-40%, EV*20-30%
▼2025-：Full AD on highways
(public-private ITS plan/roadmap 2019)
* EVs also include PHEVs
Source: Deloitte research & analysis

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Changing consumer behavior impacts many aspects of the business
The scope and scale of forces driving change require a reconsideration of many
operating decisions and customer management approaches
CUSTOMER
INDUSTRY
What is our strategy? How will we
differentiate?
What will we sell? To whom? How?
How will we operate? How will we be
structured?
What capabilities do we have? What do
we lack?
Will our technology support our
ambition?
Do we need to partner with network
providers or other vendors?
Seamless Customer Experience
Rapid Digitization
Contextual Responses
Flexible Consumption Models
Flexible Payments
Flexible Product Offerings
Promotions And Loyalty
Business Model Convergence
Competition from Other OEMs
Disruption from Non-Automotive Industries
Revenue Sharing
Demand For Cloud Platforms
Big Data
Source: Deloitte research & analysis

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Key strategic considerations for automotive brands and marketers
Successful brands and marketers need to brace for impact as competition is getting
more, fiercer and faster
• Engage customers during the research phase with targeted, tailored messaging and retain collected
data to help create a seamless, tailored purchase experience
• Leverage related online capabilities, such as financing preapprovals and finance protection product
explanations, to increase transparency and accelerate the transaction
• Expand the pool of customer data points through partnerships with mobile device providers,
social networks, application developers, location-based services and integration hubs for an
individual’s mobility profile
Data is king for
individualized
experiences
Engage
consumers
everywhere
• Potential customers are everywhere – build the flexibility to engage with customers on their own
terms in an office, home, or coffee house with video chat, AR/VR or individualized test drive scenarios
• Next generation sales agents are too – make everyone a brand ambassador incl. Uber drivers,
valet parking employees, real estate developers, etc. – and arm them with digital tools to do so
• Expand your view towards users & fans and focus on perceived value & convenience
B2C alone not
enough
• Substantiate the OEM and dealership business case through fleet & corporate sales and mobility
solutions and digital services for professional drivers
• Explore new service revenue streams for OEMs and dealers through optimized operation
management, predictive maintenance, end-of-life solutions, “smart life” and “smart city offering
1
3
2
Source: Deloitte research & analysis

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18. 18CONFIDENTIAL; © Deloitte 2019 Copyright.
China consumers’ willingness to pay for various connected technologies
Majority of Chinese consumers are willing to pay for various connected technologies
and prefer per-use payment model
Q25: How much more would you be willing to pay for a vehicle that had the following connectivity technologies?
Sample size: China=1,229
21%
24%
20%
23%
74%
70%
73%
70%
76%
72%
8%
10%18%
16%
5%
Ability for the vehicle
to self-diagnose problems and
schedule service appointments
7%
Ability for your vehicle
to communicate with other vehicles and
road infrastructure to improve safety
Communication technology
to optimize traffic flow
7%
6%
Sensors in the vehicle’s cockpit to
detect and act on health and wellness issues
Ability to connect to the internet to
facilitate infotainment and
personal communication activities
Automatically find and
pay for parking
≤2,500
RMB
>5,000
RMB
0
RMB
Up front as
part of the
vehicle
purchase
price
40%
Charged on a
per use basis
49%
As part of a monthly service
to which I subscribe
11%
How would
consumers prefer to
pay for additional
connectivity
technologies?
Source: Deloitte Global Automotive Consumer Study 2019