Chinese Automakers Gain Ground in Europe as Price Sensitivity Shifts Buyer Preferences
A new study by data analytics firm Escalent reveals that European car buyers, particularly younger consumers, are increasingly open to purchasing Chinese vehicles, with even a small price reduction significantly influencing their decisions. The research suggests that a mere 10% discount could sway sceptical buyers, accelerating the presence of Chinese automakers in the European market.
Price Sensitivity Reshaping Consumer Perceptions
The study, conducted in October and November 2024, surveyed over 1,600 new car buyers across France, Germany, Italy, Spain, and the UK. It found that while the average expected price reduction for considering a Chinese brand is 27%, around one-third of respondents expressed interest with just an 11–20% discount. Notably, 10% of respondents stated that a price cut as low as 10% would be enough to convince them to purchase a Chinese car.
Despite lingering scepticism, Chinese brands especially in the electric vehicle (EV) sector—have moved beyond their outdated reputation as low-cost alternatives. Younger buyers, in particular, are more willing to embrace Chinese manufacturers, with 19% of those under 35 stating that a 10% discount would suffice to make the switch.
Market Differences and Growth Opportunities
Consumer attitudes vary across regions, with Southern European markets, such as Italy and Spain, displaying a more favourable stance toward Chinese brands. The high cost of EVs, coupled with insufficient charging infrastructure, has stalled demand in Europe, creating an opportunity for Chinese automakers to capture market share by offering competitively priced alternatives.
“Established car manufacturers must keep looking over their shoulders,” said Mark Carpenter, Managing Director of Escalent UK. “While China’s overall credibility as a manufacturing hub still lags behind other nations, the perception of Chinese vehicles is evolving. Buyers are becoming more receptive, especially when price and quality align with their expectations.”
Chinese Brands Making Strides in Awareness and Market Presence
Escalent’s research highlights a growing familiarity with Chinese brands, with MG and BYD ranking among the top 25 most recognised car brands in Europe. While European automakers continue to dominate consumer awareness, brands like Xiaomi, NIO, and Chery are steadily gaining visibility, particularly among younger demographics.
BYD, which has implemented a high-profile marketing strategy including sponsorship of UEFA Euro 2024, is rapidly increasing its brand presence. The company’s approach mirrors the successful market entry strategies of previous automotive newcomers, such as Hyundai. As a result, BYD has become the most popular Chinese brand among European new car buyers, with nearly one in three considering it for their next purchase.
A Changing Competitive Landscape for European Automakers
The study warns that European manufacturers may face increased pressure as Chinese brands continue their aggressive expansion. Despite potential tariffs ranging from 17% to 35% in some markets, Chinese automakers are investing heavily in marketing, dealership networks, and sponsorships to solidify their position.
Carpenter noted that the European EV market could experience rapid transformation as Chinese automakers strengthen their brand presence and offer more competitive pricing. Traditional carmakers must recognise this growing threat and adapt accordingly, as Chinese brands are proving they can appeal to a broad range of consumers not just budget-conscious buyers.
With Chinese automakers accelerating their presence and consumer perception shifting, the European automotive landscape is set for significant disruption, making affordability a key battleground for market dominance.
