Established car manufacturers must “keep looking over their shoulders” as sentiment for Chinese auto brands grows among new car buyers.

MG (22nd) and BYD (25th) are now among the top 25 most familiar car brands

A new study by data analytics and advisory firm Escalent has found that price is a critical motivator and could even tempt consumers normally reluctant to buy Chinese brands, turning them from “biased” to “buyer” with little effort.

The extent of the price reduction varies by age and country according to the study of more than 1,600 new car buyers in Europe (France, Germany, Italy, Spain and UK) conducted in October and November 2024.

The average price reduction is 27%, while around a third would be interested if the price difference was 11% to 20%. And one in 10 would be swayed with just a 10% reduction.

Overall, the majority (72%) of new car buyers expect Chinese cars to be cheaper than established brands. Yet Chinese brands – particularly for electric vehicles – have moved on from their ‘cheap copy’ image and are seen as being as innovative as other global brands.

Younger buyers are less likely to pigeonhole Chinese brands as the budget option and need less of a financial incentive. In the under-35 age group, 19% would only need to see up to a 10% reduction to consider buying Chinese cars.

In Southern Europe (Italy and Spain), where there is a more positive attitude towards Chinese brands, there’s an expectation of bigger reductions. Clearly, there is a desire for more car options at the lower end of the price spectrum as the premium price of EVs, alongside the lack of charging infrastructure, has caused demand to stagnate.

Mark Carpenter, managing director of Escalent UK, said: “We found that at the generic level, the credibility of goods from China tends to trail other countries by a large margin. But when the focus is on cars, that gap is already a little smaller, with people willing to change their mind for a car that’s of comparable price and quality. There’s clearly a tipping point where people are willing to transition from being biased to an interested buyer.

“For Chinese car brands looking to accelerate their growth in Europe, it’s an opportunity to fast-track their way into consumers’ minds at an unprecedented speed – and we’re already seeing evidence of this. Despite talk of tariffs of 17% to 35% in some markets, Chinese brands are involved in high-profile sponsorship and ad campaigns, and are growing a bigger presence on dealership forecourts.”

Escalent warned falling brand loyalty could change the EV car landscape in Europe very quickly.

“Even with relatively nascent levels of activity, this should be setting off alarm bells for established car brands that need to be looking over their shoulders at the growing threat.”

One in five car owners would consider a Chinese brand

A minimum of one in five car owners (of any auto brand) would ‘probably’ or ‘definitely consider’ a Chinese brand, according to Escalent’s Chinese Automotive Brand Impact Study, suggesting a critical mass of interest.

Some brands are at more risk than others, according to Carpenter, who warned that the ‘risk order’ might surprise people.

“There are South Korean, German, French, Japanese and Italian car owners in there, showing a much broader appeal for Chinese brands rather than being limited to specific areas of the market.”

Other key highlights from the study include:

• While most people have never heard of most Chinese car brands, awareness is growing. MG (22nd) and BYD (25th) are among the top 25 most familiar car brands; a list dominated by German and French names. While brands such as MG, Polestar and BYD are most familiar, Xiaomi has a 50/50 split between aware and unaware, and Nio’s familiarity is growing, with plans to bring its new affordable EV brand, Onvo, to Europe this year.
• BYD, which sponsored the 2024 Euros and ran a media campaign in Q4 2024 for the Seal U DM-I, is creating brand momentum and getting its messages out. It is now the most popular Chinese brand among new car buyers in Europe, with almost one in three people saying they would probably or definitely consider it.
• Chinese brands are accelerating their reach among different age groups. BYD appears in the top 10 of most visible brands in the past six months, above more established names. Compared with the total market norm, older car buyers are more likely to have heard of BYD and MG, while those younger than 35 are more likely to recall interactions with Xiaomi, Nio and Chery.

Escalent’s Chinese Automotive Brand Impact Study is online here.