Global automakers face an increasingly demanding customer: one who wants both competitive prices and better technology, according to Bain & Company.
Tech and features were a leading purchase consideration for 58% of Chinese consumers, ranking ahead of price, the consultancy’s latest Global Automotive Consumer Survey found
In the U.S. and Europe, price remained the top consideration, cited by 68% and 62%, respectively. However, that does not mean Chinese buyers have stopped caring about affordability. Intense domestic competition has made low prices an expectation in China, pushing carmakers to stand out through technology and features, Bain executives told CNBC.
Stricker expects Western markets to follow, with competitive pricing becoming a baseline and technology playing a bigger role in purchasing decisions. Moreover, growing competition from Chinese manufacturers is expected to intensify pricing pressure in Europe, he added. China’s vehicle exports to Italy more than doubled to 209,258 units in January-August, while U.K. shipments rose about 86% to 365,672, according to customs figures cited by the China Passenger Car Association.