Chinese automakers are gaining on more established car manufacturers, but how do new car buyers feel about these new brands on the block? Mark Carpenter, UK Managing Director at data analytics company, Escalent, takes a deep dive into brand familiarity, purchase consideration and price expectations.
With competitive pricing, advanced technology and the ambition to get a toehold in the market, Chinese car brands are already gaining ground in Europe. This is despite the tariffs raised by the EU on Chinese battery electric vehicles (BEVs) as it takes action to protect local markets. The risk is that puts up the price of vehicles in the region, potentially making them less affordable for European car buyers.
In a recent study of new car buyers in Europe (France, Germany, Italy, Spain and UK), we found that price is an important motivator when it comes to considering Chinese car brands. The Chinese Automotive Brand Impact Study, published earlier this month, indicates that among people who are normally reluctant to buy Chinese brands, vehicle price is a potent persuader, turning them from ‘biased’ to ‘buyer’ with little effort.
Even though the most sceptical consumers need the most pricing persuasion, there are clear indications that Chinese car brands have a certain amount of discounting flexibility that could tempt most car buyers to give serious consideration to their products.
The extent of the price drop varies by age and market, with an average price reduction of 27%. Around one-third of car buyers would be interested if the price difference was 11%–20%, but one in ten only needs to see a 10% price benefit to trigger their interest.
The credibility of goods from China tends to trail other countries by a large margin. It’s true that when the focus is on cars the gap is smaller, with people willing to change their mind for a car that’s competitively priced and of at least adequate quality.
Younger buyers are less likely to pigeonhole Chinese brands as the budget option and need less of a financial incentive. Among those under the age of 25, around one in five (19%) would only need to see up to a 10% reduction to consider buying Chinese cars. There’s also a difference in attitude towards Chinese brands between countries. In Italy and Spain, for example, there is more positive sentiment, but also an expectation of bigger reductions.
This is a challenge for Chinese BEV makers who have been trying to move away from their ‘cheap copy’ image by investing in high profile advertising campaigns and ambitious sponsorship deals straight out of the Hyundai playbook.
Last year, BYD became the official sponsor of UEFA Euro 2024, the first major Chinese BEV brand to do so, investing heavily in raising awareness across Europe. It was largely successful, with close to half (46%) of respondents saying they had heard of BYD compared to 28% before the tournament according to one survey.
This growing awareness and familiarity of Chinese BEVs is backed up by our own data. While European car buyers have never heard of most Chinese brands, this is changing. In a top 25 list of the most familiar car brands, MG is at number 22 and BYD at 25. BYD also appears in the top 10 list of most visible brands in the past six months, above more established names.
It’s little surprise that among Chinese car makers, MG and BYD are the most familiar names. But we’re also seeing greater familiarity of other brands including innovative Volvo subsidiary, Polestar. Positioning itself as a premium BEV brand with a focus on cutting-edge technology and sustainability, Polestar is available in 27 markets already, adding France to its list in 2025.
The company is also launching its “Polestar Energy” offering in 11 key markets across Europe after a successful pilot in the UK. This new service is designed to make BEV charging smarter, more efficient and cheaper – with reports that it will reduce home charging costs by up to 30%, using the Polestar Energy app. All qualities that will make it more attractive to car buyers.
NIO is another innovative Chinese brand that’s becoming more familiar to car buyers – and for good reason. Despite establishing itself as a prominent player in the premium BEV market, its new low-cost Onvo, which launches in Europe this year, is well placed to meet buyers’ expectations of lower prices.
Price will be an important driver and key motivator as Chinese BEV brands push to expand their presence in Europe – and seek to win car buyers’ hearts and minds. With at least one in five car owners (of any brand) saying they would ‘probably’ or ‘definitely consider’ a Chinese brand, are we seeing the automotive landscape about to change forever?
https://landing.escalent.co/chinese-automotive-brand-impact-study-europe
