Escalent’s Chinese Automotive Brand Impact Study warns established manufacturers in Europe of threat as sentiment for Chinese auto brands grows among new car buyers
One in five car owners would consider a Chinese brand
Chinese car brands MG and BYD are among the top 25 most familiar car brands

LONDON, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Established car manufacturers must “keep looking over their shoulders” as positive sentiment for Chinese car brands grows among European new car buyers, particularly younger people. This warning comes from the Chinese Automotive Brand Impact Study published today by data analytics and advisory firm Escalent, which shows that even among consumers who are normally reluctant to buy Chinese brands, price is a critical motivator, 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 of 2024. The average price reduction is 27%, while about one-third would be interested if the price difference was 11%–20%. One in ten needs to see only a 10% price benefit to trigger their interest.

Overall, the majority (72%) of new car buyers expect Chinese cars to be cheaper than established brands. Yet Chinese brands—particularly their electric vehicles (EVs)—have moved away 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%–35% in some markets, Chinese brands are involved in high-profile sponsorship and ad campaigns, and are growing a bigger presence on dealership forecourts.”

He added, “This focus on ‘brand’ alongside a price offer that is likely to be less than alternatives 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:

MG climbing the “familiarity ladder”: 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 emulating familiar tactics of other newcomers: Copying the Hyundai playbook with its TV campaign across Europe and sponsorship of the Euros 2024, BYD 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 accelerating 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.

For more information on Escalent’s Chinese Automotive Brand Impact Study, visit https://landing.escalent.co/chinese-automotive-brand-impact-study-europe

Ends

Methodology
Escalent’s Chinese Automotive Brand Impact Study was conducted across a market-representative sample of 1,630 respondents ages 18 to 80 with a primary vehicle model 2016 or newer and who are planning to purchase a new vehicle within the next five years. The respondents were from five European countries: France (n=326), Germany (n=326), Italy (n=326), Spain (n=326) and the United Kingdom (n=326). The survey was fielded from October 3 to November 12, 2024. Data were weighted by age and gender to match the demographics of the new-vehicle buyer population and by vehicle segment to match current vehicle sales. The sample for this research comes from an opt-in, online panel. As such, any reported margins of error or significance tests are estimated and rely on the same statistical assumptions as data collected from a random probability sample. Escalent will supply the exact wording of any survey questions upon request.

About Escalent
Escalent is an award-winning data analytics and advisory firm specializing in industries facing disruption and business transformation. As catalysts of progress for more than 40 years, we accelerate growth by creating a seamless flow between primary, secondary, syndicated, and internal business data, providing consulting and advisory services from insights through implementation. We are 1,800 team members strong, following the acquisition of C Space and Hall & Partners in April 2023. Escalent is headquartered in Livonia, Michigan, with locations across the US and in Australia, Canada, China, India, Ireland, the Philippines, Singapore, South Africa, UAE and the UK. Visit escalent.co to see how we are helping shape the brands that are reshaping the world.

For further information, please contact:
Amanda Hassall
Eureka Communications
M: amanda@eurekacomms.co.uk
Tel: +44(0)1420 564346

Photos accompanying this announcement are available at

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