German tier 1 supplier Continental recently commissioned a representative mobility study in August 2024 to understand the perception about young people on mobility needs.

For the Mobility Study 2024, infas was commissioned by Continental in August 2024 to survey a total of around 5,000 people aged 18 and over in Germany, China, France, Japan and the USA about their mobility habits and attitudes to a variety of mobility issues. In each country, the respective sample is representative of the population; for China, it is representative of the urban population. The aim of the Continental Mobility Study, now in its eighth edition since 2011, is to provide an international comparison of people’s attitudes toward current and future developments in mobility and their personal usage habits. The range of topics covered in this year’s study included automated driving, user experience, AI in cars, sustainable mobility concepts, mobility in urban areas, the affordability of mobility and attitudes toward government regulation in the mobility sector.

The key findings found that overall, 84 percent of car owners in Germany, regardless of age, believe that it is important to own a car. For almost 90 percent, having a car is essential for shopping and running other errands. The majority of young people in Germany are particularly enthusiastic about technological advances in cars. They look forward to the benefits self-driving cars will offer in terms of being able to read, play video games or work (51 percent of 25 to 34-year-olds). In addition to autonomous driving, artificial intelligence (AI) in the form of digital voice assistants is very popular with this group. There is a similar level of approval in the four other countries surveyed in the study.

Philipp von Hirschheydt, Executive Board member responsible for the Automotive group sector, Continental, said, “The findings show that the response to new technologies such as automated driving, large displays and AI in cars varies greatly between generations and also between countries. That’s why we aim to provide customised solutions – market-specific, tailor-made and modular.”

The findings of the study also reveal the current status of the trend toward lower-emission mobility worldwide. Particularly striking is that acceptance of fully electric cars remains low.

In Germany, only 3 percent of all car owners have an electric vehicle. However, just over a third of respondents who do not yet own an electric vehicle believe their next car will be fully electric (39 percent, compared with 34 percent in 2022). By contrast, hybrid drives are highly popular across all countries. In Germany (48 percent) and the USA (47 percent), nearly half of respondents who do not own an electric car can imagine their next vehicle being a hybrid with a combustion engine and an electric motor.

In China, that figure rises to almost nine out of 10 respondents (86 percent). This means that hybrid cars could increasingly bridge the gap to e-mobility and give it a renewed boost. With a share of 68 percent, younger people in Germany aged between 25 and 34 are particularly interested in electric cars – also compared with their international peers.

Vehicle as a status symbol 

On the one hand, younger people up to the age of 34 in Germany do not feel that attached to cars. For them, more than for older respondents, it is one of many means of transportation available. On the other hand, generation Y and Z drivers born in the 1990s and later have a clear emotional connection to their cars: for more than half of 18 to 34-year-olds (54 percent) in Germany, cars are regarded as a status symbol – twice the share among respondents aged 45 and over. People aged between 18 and 34, particularly those living in large cities, see cars as a prestige item (67 percent). In small towns and rural areas, the approval rate is around 49 percent. This view of the car is accompanied by growing expectations. Of the 25 to 34-year-olds surveyed, for example, 51 percent believe that cars of the future should not only be a safe means of transportation, but also a place to relax and work.

Tech attracts young people

The study also found that younger people in Germany also had a positive attitude toward highly automated and autonomous driving, with around two-thirds (65 percent) of 18 to 34-year-olds seeing this as a useful development. Among older respondents aged 55 and over, 39 percent share this view. Around two-thirds of younger people up to the age of 34 also believe that state-of-the-art technologies should be mandatory in newly registered cars in order to make traffic even safer – a viewpoint that signals approval of the EU directive requiring certain advanced driver assistance systems in new cars, which has been in force since July 2024.

Another future technology that is particularly popular with younger people is AI assistants in cars. Almost three-quarters of respondents (74 percent) between the ages of 18 and 34 would welcome an AI voice as a service that, like a virtual travel companion, provides useful information about sights and restaurants along the route, finds the nearest gas or charging station, searches for free parking spaces or even compiles personal messages.

“Younger people in particular have changing expectations of cars. These are closely linked to pioneering technologies such as automated driving, which deliver new user experiences. At Continental, we’re already equipping cars with AI. Together with our partner Google Cloud, we have developed a virtual companion for drivers. We are particularly proud to be one of the first automotive suppliers worldwide to integrate Google Cloud applications directly into our vehicle computers,” added Hirschheydt.

Autonomous & AI

The comparison between countries reveals a widespread openness to highly automated and autonomous driving in Asia across all age groups. In China, nine out of 10 respondents (90 percent) view the relevant technologies as a useful development, while in Japan, almost three-quarters (72 percent) share this sentiment. In France (60 percent) and the USA (56 percent), more than half of those surveyed have a positive attitude. In Germany, around one in two respondents (49 percent) feel the same. An AI-powered virtual travel companion is particularly popular in China, where nine out of 10 respondents (91 percent) say they would like to have such a service. In the USA (66 percent) and Japan (63 percent), around two-thirds express this wish, while in France (58 percent) and Germany (57 percent) more than half would be happy to have the technology.

There is broad agreement across all countries on the ideal size of a car display for infotainment content. Most people prefer larger displays, with 90 percent of respondents in China favouring this option.

In Germany (81 percent), France (79 percent) and the USA (80 percent), eight out of 10 respondents would like their navigation, vehicle data and music to be shown on large screens.

In Japan, the figure is more than two-thirds (69 percent). However, preferences differ significantly when it comes to technological details. While the majority of respondents in Japan (79 percent) and more than half in Germany (57 percent) prefer a simpler display on car screens, a slight majority in the USA (58 percent) favour more colours. By contrast, many features are popular in China (69 percent). In Japan (70 percent), the majority prefer a more straightforward digital design, while in Germany, around half feel the same way (55 percent).

There are also differences between countries when it comes to the question of whether a display should be controlled by voice or manually: voice control is particularly popular in Japan (67 percent), more than half are in favour of it in China (59 percent), while the number is significantly lower in Germany (43 percent). In the USA, just over half (55 percent) also prefer to operate a display manually.

Hybrid

The study shows that hybrid drivers in Germany have an above-average interest in all-electric mobility – a strong indication that hybrid cars can play a key role as a bridging technology for the transition to fully electric drives.

For example, 43 percent of respondents who currently use a vehicle with a combined combustion engine and electric motor say that their next car will definitely be an all-electric vehicle. Those who drive a gasoline or diesel vehicle are significantly less open to such a switch (12 and 19 percent respectively). In addition, a clear majority (58 percent) of hybrid drivers would be willing to buy an electric car without a government subsidy.

The data suggests that hybrid vehicles are boosting people’s confidence in e-mobility and may help reduce any reservations about fully electric vehicles. One group with significant future potential for this development is the 48 percent of respondents who do not drive an electric or hybrid car and for whom an all-electric car is not currently an option, but who are considering a hybrid as their next car.

Varying degree in e-cars

The shift to electric mobility is under pressure in Germany, where sales of all-electric cars are faltering. According to the latest figures of the Continental study, electric cars represent a significant share (10 percent) of the overall passenger-car fleet in China, while only 3 percent of respondents in Germany drive an all-electric car and 91 percent a car with a combustion engine (China: 80 percent). There is potential for higher sales of electric cars in Germany, particularly among those aged 18 to 34. In this age group, around two-thirds (64 percent) of respondents believe it is certain or likely that their next car will be fully electric – a trend that gradually diminishes in older generations.

A look at age-dependent attitudes toward electric mobility reveals that, like many other technological developments, e-mobility is more appealing to younger drivers than older ones. They are more willing to forgo subsidies: 50 percent of 25 to 34-year-olds would consider buying an electric car without government assistance. However, the willingness to fully finance an electric vehicle decreases significantly among those aged 45 and older.

EVs and subsidy

The study found that two-thirds of respondents in Germany link the purchase of an electric car to a government subsidy is an expression of their concerns about being unable to finance an electric car on their own. In Germany, 71 percent of respondents worry that mobility will no longer be affordable due to rising energy prices. In the 2022 Mobility Study, 73 percent of people in Germany expressed their concerns about the affordability of mobility.

What’s more, 65 percent of respondents fear that they will not be able to afford an electric car in the near future and 56 percent are worried that driving could soon become too expensive for them. As a result, a clear majority (80 percent) expect policymakers to create the framework conditions to ensure that driving remains affordable. At the same time, they believe driving should be made more sustainable in the most cost-neutral way possible. Almost three-quarters (73 percent) of respondents think that the cost of environmentally friendly cars needs to fall. Regulatory interventions such as a speed limit of 130 kmph on highways are met with acceptance (62 percent), provided they do not lead to price increases. Younger respondents are less price-sensitive. They are much more prepared to pay a premium for environmentally friendly cars, especially if they are completely carbon-neutral in production and operation (40 percent of 18 to 24-year-olds compared with 13 percent of 45 to 54-year-olds).

Sustainable tyres

Sustainability is an important concern for people with cars is also demonstrated by their attitude to tyres. According to the study, almost eight out of 10 drivers in Germany (84 percent) who also value tyre recycling consider it important that their tyres contain an increasing share of environmentally friendly materials. When purchasing tyres, younger people (61 percent of 25 to 34-year-olds) are more concerned than older people about what happens to the tyres at the end of their service life.

Furthermore, 44 percent of car owners in Germany would be willing to pay a premium for tyres made from a higher share of renewable and sustainable materials. Here again, this willingness is most pronounced among 25 to 34-year-olds (65 percent).

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Mumbai-headquartered automotive major Mahindra & Mahindra has announced that its XUV 3XO ZNG has achieved a 5-star safety rating under the Bharat New Car Assessment Programme (Bharat NCAP), making it the first sub-compact CNG vehicle in India to receive the score.

The compact SUV recorded 29.36 out of 32 points for Adult Occupant Protection and 45 out of 49 points for Child Occupant Protection. The model features 35 standard safety items, including six airbags, Electronic Stability Control and ISOFIX child-seat mounts.

Safety provisions specific to the CNG system include an integrated gas-leak detection mechanism that switches the fuel source to petrol mode if a leak occurs. The c-SUV features an underfloor twin-cylinder tank layout that maintains a flat boot floor and 270 litres of cargo space. Power output stands at 82 kW with 200 Nm of torque across petrol and CNG modes, alongside a certified fuel efficiency rating of 24.7 km/kg.

Dr Velusamy R, President of the Automotive Business, Mahindra Group, said, "At Mahindra, safety is a fundamental commitment that guides every stage of vehicle development. The XUV 3XO ZNG was engineered to excel across every aspect of the ownership experience, delivering ‘zero compromise’ in space, technology, performance and driving experience. Its robust architecture is engineered to provide high levels of occupant protection and peace of mind on every journey. The 5- star Bharat NCAP rating is a testament to our engineering excellence and reinforces the XUV 3XO ZNG's position as an SUV that excels across every dimension.”

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Mahindra and Mahindra is preparing to roll out four new products for its SUV portfolio and one light commercial vehicle in the first half of calendar 2027 as the automaker looks to sustain growth through a pipeline of new models and a significant expansion in production capacity.

The five planned launches will comprise a new product based on the company's new NU-IQ platform, an all-new battery electric vehicle, a lifestyle vehicle and one product refresh alongside a new LCV, informed Executive Director and CEO, Auto and Farm Sectors, Rajesh Jejurikar during the company's Q2 FY27 earnings call.

The product pipeline comes as Mahindra continues to face capacity constraints amid strong demand for its SUV portfolio. The company said it was operating at or above its available production capacity with October production exceeding the monthly capacity it had indicated for the end of September.

Mahindra began FY27 with SUV production capacity of around 64,500 units a month. This is expected to increase to 82,000 units a month by the end of the current financial year followed by 92,000 units in the next financial year. The company is targeting capacity of 132,000 units a month by the exit of FY31 as a new plant comes upstream.

Jejurikar also confirmed that the company was progressing with its Nagpur project. “We are on track for setting up the Nagpur project. We got the parcel of land and work is starting very shortly on that,” he said, adding that the facility would support the rollout of new products according to the schedule presented by the company.

Capacity expansion to support SUV growth

Mahindra reported 26 percent year-on-year growth in SUV volumes in the second quarter, while volumes for the first half increased 20 percent. However, the company said its sales performance continued to be constrained by production capacity.

At the end of September, its monthly capacity was around 61,000 units for internal combustion engine products and 8,000 units for electric vehicles. Jejurikar said the company had produced more than this indicated capacity in October reflecting the strength of demand.

The company maintained its expectation of mid-to-high-teen growth in its SUV business during FY27 with additional capacity expected to support volumes.

The company is also expanding its electric vehicle ecosystem. It had established 49 ultra-fast charging stations covering around 12,000 kilometres of highways with charging facilities available approximately every 200 kilometres on the covered routes. Mahindra and Mahindra plans to increase this network to 215 stations by the end of calendar 2027.

Commodity inflation puts pressure on margins

The expansion and product pipeline come against a backdrop of elevated input costs. The company’s earnings presentation highlighted year-on-year increases of 42 percent in copper prices, 40 percent in rubber and 17 percent in steel.

Despite these cost pressures, Mahindra reported 25 percent growth in revenue and profit after tax in Q2 FY27. Revenue stood at INR 575.53 billion, while PAT was INR 45.88 billion.

Managing Director and Group CEO, Dr Anish Shah, said the company had taken proactive measures to manage inflationary pressures including pricing actions, hedging, product-mix improvements and supplier diversification.

Mahindra had implemented price increases of 5 percent in its auto business and 4 percent in its farm business. Dr Shah indicated that the company expected some margin pressure in Q3, while the outlook for Q4 would depend partly on how commodity prices evolved.

Farm business outlook revised

Mahindra has revised its FY27 tractor industry growth outlook from 5 percent to a flat performance, citing deteriorating rainfall conditions, lower reservoir levels and pressure on farmers’ terms of trade.

Company officials noted that Maharashtra and Karnataka had experienced significant industry contraction with drought conditions affecting demand in these important tractor markets. Higher input costs had also weakened farmers’ purchasing power.

The international farm business continued to face difficult market conditions. Mahindra and Mahindra reported industry contractions of 15 percent in the US, 18 percent in Brazil and 36 percent in Turkey.

It has completed its exit from Sampo’s harvesting business in Finland and Arcon Foundry in Turkey, while the restructuring of its Mitsubishi Agricultural Machinery subsidiary in Japan is expected to be completed by Q4 FY27.

LCV business operating at capacity

Mahindra's LCV business recorded 19 percent volume growth in Q2, while first-half volumes increased 20 percent. The company said it was producing around 30,000 LCVs a month covering its pick-up and Supro ranges and was operating at capacity.

Jejurikar said demand in the LCV industry had strengthened following the GST reduction with monthly industry volumes rising from around 20,000–23,000 units to approximately 30,000 units. The company expects double-digit growth in the LCV industry for the entire FY27.

The planned new LCV launch in the first half of 2027 will add to the company's product pipeline as it works to address capacity constraints.

Mahindra's Q2 performance also reflected growth across its wider businesses. The group reported 25 percent year-on-year growth in PAT, while first-half PAT increased 29 percent.

Quarterly snapshot

The company reported SUV volumes of 183,000 units during the quarter, while its SUV revenue market share stood at 24.3 percent. Total automotive volumes increased 26 percent to 331,000 units.

The automotive business recorded consolidated revenue of INR 377.56 billion representing a 39 percent year-on-year increase. Consolidated PAT rose 55 percent to INR 23.88 billion. Standalone PBIT stood at INR 26.14 billion, up 15 percent, while the standalone PBIT margin was 7.7 percent. Excluding e-SUV CMA, the margin stood at 9.1 percent.

In the electric vehicle segment, the company reported an e-SUV revenue market share of 30.1 percent. Its electric SUV portfolio maintained the number-one position in revenue market share during the first half of FY27.

Mahindra and Mahindra also retained its leadership position in the light commercial vehicle segment below 3.5 tonnes with a market share of 52.3 percent. The figure includes the Bolero Max Pickup 2T variant classified under the 2–3.5-tonne LCV category and Jeeto volumes.

The company reported tractor volumes of 116,027 units during Q2 FY27 compared with 122,936 units in the year-ago quarter, marking a decline of 6 percent. Its tractor market share stood at 41.5 percent. Consolidated farm revenue declined 6 percent to INR 95.72 billion, while PAT fell 9 percent to INR 10.53 billion. Standalone PBIT was INR 14.41 billion with the PBIT margin at 16.8 percent, down 300 basis points.

The company also reported a 37 percent year-on-year increase in combined Q2 FY27 volumes across its commercial vehicle businesses as Mahindra Trucks and Buses Division (MTBD) and SML Mahindra together sold 8,416 units. It was also noted that the company is looking to expand manufacturing capacity for its heavy commercial vehicle range after strong fleet demand for the Blazo i-TRK, launched in August, drove plant utilisation to full capacity.

Across its other businesses, Mahindra Finance reported a 15 percent increase in assets under management, while PAT grew 61 percent. Tech Mahindra's PAT increased 33 percent with its EBIT margin improving to 14.8 percent, up 260 basis points.

Mahindra Lifespaces recorded residential pre-sales of INR 11 billion, up 41 percent, while Mahindra Logistics reported revenue of INR 20.95 billion, an increase of 24 percent with PAT growing threefold.

At the group level, Mahindra's standalone revenue increased 26 percent to INR 442.82 billon, while EBITDA rose 4 percent to INR 67.18 crore. Standalone PAT increased 13 percent to INR 51.02 billion. The company reported a return on equity of 21 percent on an annualised basis and year-to-date earnings per share of INR 89.5.

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Universo Ferrari India has concluded its two-week exhibition at Yashobhoomi in New Delhi, recording more than 22,000 visitors. The event showcased the automaker's heritage, motorsport involvement, engineering and future product strategy to clients, industry partners and students.

The display featured a range of road cars, including the Ferrari F80, 849 Testarossa Spider, 12Cilindri Spider, Amalfi Spider, Daytona SP3, and F50. Motorsport exhibits included the Scuderia Ferrari SF-26 Formula 1 car, the 499P hypercar, the 296 GT3, and the 296 Challenge. The exhibition also featured Ferrari Luce, the brand's first electric car, alongside heritage models such as the 365 GTB4 and the 612 Scaglietti from the 2008 Magic India Discovery tour, while the Ferrari Hypersail made its debut in Asia. During the event, Ferrari conducted seminars for approximately 1,000 students and held a charity auction supporting Bal Raksha Bharat to assist educational programs.

The event was preceded by a drive featuring 25 Ferraris travelling 1,800 kilometres from Mumbai to New Delhi via Vadodara, Udaipur, Jaipur and Agra.

Ferrari also announced Avelon Luxe as its India-based partner for the Ferrari Hypercar and Ferrari Challenge Middle East series. To support its growth in the market, Ferrari plans to expand its retail footprint in India by opening two new dealerships in Chennai and Ahmedabad by the end of 2026.

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Volkswagen is gearing up to launch the New Virtus, a refreshed take on a sedan that has won over discerning buyers since its June 2022 debut. The model earned its standing as the segment's most loved premium sedan through distinctive styling, German engineering credentials, engaging driving dynamics, a premium experience and a strong safety focus. The new version carries those traits forward while introducing a fresh visual identity.

Beyond transportation, the Virtus holds meaning for Volkswagen customers as a symbol of pride, aspiration and individuality, blending premium ownership with driving thrill. Its road presence, performance and German engineering have made it a source of owner satisfaction. The refreshed styling, drawing on triangular geometry, sharpens the sedan's already distinctive look with greater definition and a contemporary edge.

The New Virtus keeps celebrating the joy of driving while remaining faithful to the attributes that built its following. By extending that legacy, Volkswagen aims to preserve what made the sedan a segment favourite while adding a new dimension to its established character.

Nitin Kohli, Brand Director, Volkswagen India, said, “We are excited to introduce the New Virtus to the Indian market. The Virtus has built a strong connect with its discerning set of customers and has clearly established a leading position in its segment as a stylish, sophisticated and performance-oriented sedan offering great driving pleasure. With this facelift, we are building on a much-loved product, bringing a fresh and contemporary character while retaining the qualities that make the Virtus special. We look forward to continuing to bring the joy of driving to our customers with the New Virtus.”

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