Established car manufacturers must “keep looking over their shoulders” as positive sentiment for Chinese car brands grows among European new car buyers, particularly younger consumers.
This warning comes from the Chinese Automotive Brand Impact Study, published by data analytics and market advisory firm Escalent. The study highlights that even among traditionally reluctant buyers, price is a critical motivator, turning them from “biased” to “buyer” with minimal effort.
The study, which surveyed over 1,600 new car buyers across France, Germany, Italy, Spain, and the UK in late 2024, found that the average price reduction needed to attract interest in Chinese brands is 27%. However, one-third of respondents said they would consider a Chinese car if the price difference was just 11%–20%, while one in ten would be swayed by a mere 10% reduction.
Overall, 72% of new car buyers expect Chinese cars to be cheaper than established brands. Yet, Chinese brands — particularly their electric vehicles (EVs) — are shedding their “cheap copy” image and are now perceived as innovative competitors on par with global players.
Younger buyers, in particular, are less likely to view Chinese brands as budget options and require less financial incentive to consider them. Among those under 35, 19% would only need to see up to a 10% price reduction to take Chinese cars seriously.
In Southern Europe, where attitudes toward Chinese brands are more positive, buyers expect even larger price reductions. This reflects a growing demand for affordable EV options, as high prices and inadequate charging infrastructure continue to stifle demand in the region.
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By GlobalData
Mark Carpenter, managing director of Escalent UK, noted, “We found that while the credibility of goods from China generally trails other countries, the gap is smaller when it comes to cars. People are willing to change their minds for a car that’s of comparable price and quality. There’s clearly a tipping point where bias turns into interest.”
Carpenter added, “Chinese brands are accelerating their growth in Europe at an unprecedented pace. Despite potential tariffs of 17%–35% in some markets, they’re investing in high-profile sponsorships and ad campaigns, and their presence on dealership forecourts is growing. This combination of brand-building and competitive pricing could reshape the European EV market very quickly.”
The study also revealed that one in five car owners would “probably” or “definitely consider” a Chinese brand, indicating a critical mass of interest. Carpenter warned that the appeal of Chinese brands spans owners of South Korean, German, French, Japanese, and Italian cars, suggesting a broader market threat than previously anticipated.
Key highlights from the study:
- MG and BYD climbing the familiarity ladder: MG ranks 21st and BYD 25th among the most familiar car brands in Europe, a list still dominated by German and French names. Xiaomi and Nio are also gaining traction, with NIO planning to introduce its affordable EV brand, Onvo, to Europe this year.
- BYD’s aggressive marketing: BYD is emulating the strategies of other successful newcomers, such as Hyundai, with a Europe-wide TV campaign and sponsorship of the Euros 2024. It is now the most popular Chinese brand among European buyers, with nearly one in three considering it.
- Age-based appeal: While older buyers are more familiar with BYD and MG, younger consumers are more likely to recall interactions with Xiaomi, NIO, and Chery.
