New Car Tech: A Waste of Money or a Must-Have? J.D. Power Study Reveals Disconnect
New car prices are steadily climbing, driven in part by the increasing integration of advanced technologies. However, a recent study by J.D. Power suggests that some of this tech may be going to waste, as many owners aren’t using the features they’re paying for.
The J.D. Power 2021 U.S. Tech Experience Index (TXI) Study, released on October 6, 2021, examined how consumers interact with and perceive the value of various in-car technologies. The findings paint a picture of a potential disconnect between what automakers are providing and what consumers actually want and use.
“New-vehicle prices are at an all-time high, partly as a result of an increased level of content,” said Kristin Kolodge, executive director of human machine interface at J.D. Power. “This is fine if owners are getting value for their money, but some features seem like a waste to many owners.”
Key Findings of the J.D. Power TXI Study
One of the most striking findings is that for over one-third of advanced automotive technologies, fewer than half of owners had used them within the first 90 days of owning their vehicle. The primary reason given by non-users was a perceived lack of need for these features.
For example, the study found:
- In-vehicle digital market technology: 61% of owners reported never using this technology, with 51% of those saying they didn’t need it.
- Driver/passenger communication technology: 52% of owners had never used it, and 40% of those non-users stated they had no need for it.
These results suggest that automakers may be overestimating consumer demand for certain technologies, and underscore the importance of understanding what features resonate most with buyers.
The Dealer’s Role
The study also highlighted the critical role that dealerships play in helping owners understand and appreciate new technologies. Dealers who provide demonstrations of new features, such as safe exit assist or trailer assistance, significantly improve owner satisfaction. Dealer education makes a big difference in how owners understand a new feature and its overall value.
Specifically, the study showed:
- Dealer demonstrations of trailer assistance resulted in a satisfaction score of 8.69 (on a 10-point scale),
- Learning about the technology from an outside source resulted in a satisfaction score of 7.83.
Despite their influence, only 30% of owners learned about trailer assistance from a dealer, while 71% relied on outside sources.
Technology Performance and Global Differences
The study also looked at the performance of different technologies. In-vehicle gesture controls, which rely on hand motions instead of touch, received poor marks, with 41 problems reported per 100 vehicles (PP100). This technology also had the lowest overall satisfaction score for a second consecutive year.
Conversely, one-pedal driving technology, common in some electric vehicles, earned high satisfaction levels, with relatively few reported problems (8 PP100).
The research also revealed that technology preferences aren’t universal. The study compared data from the United States and China, finding a significant difference in owner satisfaction with camera rear-view mirrors. While this technology is well-received in the U.S., Chinese owners reported the most problems with it (18 PP100).
Tesla’s Unofficial Top Score
Although not officially ranked due to limitations in data collection, Tesla received an Innovation Index score of 668 (on a 1,000-point scale). J.D. Power does not have permission to survey Tesla owners in 15 states where Tesla sells vehicles. Based on limited data, Tesla still achieved a high score.
Highest-Ranking Brands
- Genesis ranked highest overall and in the premium segment with an Innovation Index score of 634
- Hyundai ranked highest in the mass market segment with a score of 519.
Conclusion
The J.D. Power Tech Experience Index provides valuable insights for automakers aiming to create vehicles that meet consumer expectations. It helps companies understand which technologies are most valued and effectively implemented, and highlights the importance of dealer education in promoting the adoption of new features. By aligning new technologies with actual consumer needs, automakers can enhance customer satisfaction and ensure that vehicle prices reflect genuine value.
