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For many consumers, purchasing a car is increasingly based on connectivity, convenience, and digital experiences

By Lindsey Dickman  &nbsp July 30, 2026     6-minute read

The automotive industry has historically been shaped by moments of transformation, but the current environment is uniquely complex. The forces reshaping the sector are fluid, with automakers and consumers grappling with affordability pressures, gas prices, interest in and hesitation around self-driving cars, and shifting sentiment toward electric and hybrid vehicles. These tensions are systemic and happening simultaneously.

Electric vehicle demand has proved anything but linear. In recent months, consumers accelerated purchases to capture expiring incentives, paused when affordability and infrastructure concerns resurfaced, and are now reengaging as fuel prices continue to fluctuate. This kind of short-term volatility underscores a broader marketing trend: demand is recalibrating, not declining, and remains highly sensitive to external forces beyond brand control.

Automakers need to be attuned to changing consumer values. Take the evolution of cars from "driving machines" to "mobility hubs." For many consumers, vehicles are increasingly judged on connectivity, convenience, and digital experiences.

According to a Kantar BrandZ survey, based on the opinions of 4.5 million respondents and 22,000 brands, 47 percent of vehicle consideration in the U.S. is driven by a brand being meaningful to consumers, highlighting the importance of delivering relevance across both functional and emotional needs.

At the same time — and critically for the U.S. market — this is not the whole story. There remains a deeply rooted and highly valuable cohort of buyers for whom performance, capability, craftsmanship, and heritage are central to their decision-making. For such consumers, vehicles are more than transportation or technology platforms. They are symbols of freedom, self-expression, and pride of ownership. The continued strength of trucks, performance vehicles, and iconic American nameplates demonstrates that traditional automotive values remain powerful influences on consumer choice.

The winning brands can serve both audiences simultaneously, expanding relevance without abandoning the equities that made them successful in the first place.

To differentiate themselves, brands must build stronger emotional connections and create "Meaningful Difference" in the minds of consumers. Kantar data demonstrates that brands that are Meaningfully Different to more people command a five-times penetration advantage and up to two times the average category price point versus weaker competitors. Brands that do this well invest in distinctive creative execution and cultural relevance.

Innovation Is Not Enough

Technological advancements continue to accelerate rapidly but consumer adoption is uneven. Electric vehicles are widely viewed as the future, yet demand is morphing as consumers weigh concerns including infrastructure, depreciation, and long-term value.

Similarly, while autonomous and software-defined technologies advance, trust and understanding among consumers lag. This reinforces the principle that innovation does not drive growth unless it is translated into clear, meaningful benefits. Brands must transform technological progress into tangible benefits, framing innovation in ways that reinforce confidence, relevance, and utility.

According to Kantar BrandZ, Meaningful Difference can be built in different ways. Toyota demonstrates one path, building equity through safety, reliability, product breadth, and leadership in hybrid technology. These strengths helped make it the most Meaningful automotive brand in the U.S. in BrandZ's 2026 rankings of the most valuable brands.

Other brands differentiate through factors such as technology, speed of innovation, performance, capability, and heritage. The opportunity for established automakers is not to replicate any single model, but to identify and strengthen the distinctive equities that matter most to their customers while integrating innovation into an existing foundation of strength.

Balancing Progress with Heritage

In a market defined by perpetual change and long production cycles, automakers face a uniquely difficult challenge of making high-stakes decisions long before they determine where consumer expectations, technology, or culture will be when the vehicles launches.

This tension is especially pronounced among U.S.-based manufacturers. They must appeal to emerging audiences looking for connected, software-led experiences while continuing to serve core buyers who prioritize performance, craftsmanship, and legacy.

Meaningful Difference provides the framework to navigate such a complex environment. It is not about choosing between heritage and innovation, but combining them in ways that reinforce both elements.

BrandZ data also shows that Meaningful Difference is not only a growth driver but a source of resilience. Seventy percent of brands that scored above average on both "Meaningful" and "Different" in 2006 were still market leaders in 2025, compared with just 38 percent of brands that did not balance both dimensions, according to BrandZ data.

New Fuel for Automotive Brands

Growth in the next era will not stem from chasing every trend, nor from relying solely on legacy strengths. It will come from integrating both challenges into a clear, differentiated brand proposition. The most successful automotive brands will focus on the following:

• • Build "Meaning" by reinforcing emotional connection, cultural relevance, and trust.
  • Deliver "Difference" through innovation, technology, and evolving experiences that matter to consumers.
  • Balance progress with heritage, ensuring they stay relevant without losing what makes them distinctive.
  • Translate complexity into clear value for consumers, across both ownership and experience.

Taking these steps to heart helps brands turn volatility into opportunity and position themselves not just to compete — but to lead.

For established automotive companies, this is more than a moment of disruption. It is a moment of asymmetric opportunity. Few brands throughout the world possess the heritage, cultural resonance, and manufacturing scale than U.S. automakers.

The challenge is not choosing between legacy and next-generation mobility, but integrating both into a single, compelling brand story that honors performance, craftsmanship, and heritage, while delivering the connected, software-led experiences that new buyers expect.

Meaningful Difference enables that integration, ensuring brands not only keep up with change but build on what have made them iconic while evolving fast enough to remain indispensable.

The winners in this next era will not be those brands that abandon their past, nor those that resist the future, but those who prove they can do both better and more decisively, than anyone else.

Kantar is a partner in the ANA Thought Leadership Partner Program.

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