CHENGDU, CHINA – AUGUST 21: Visitors test a new sedan during the 29th Chengdu International Auto Show at China Western International Expo City on August 21, 2026 in Chengdu, Sichuan Province, China. The exhibition featured nearly 120 domestic and international car brands displaying around 1,600 vehicles under the theme “Leading the Trend, Stepping into the New.” (Photo by An Yuan/China News Service/VCG via Getty Images)
China News Service | China News Service | Getty Images
Global automakers are facing increasingly demanding customers: those who want competitive prices and better technology, according to Bain & Company.
Technology and features are the main purchase considerations for 58% of Chinese consumers, ranking ahead of price, the latest Global Automotive Consumer Survey found in the consultancy. In the US and Europe, price remains the main consideration, cited by 68% and 62% respectively.
However, this does not mean that Chinese buyers have stopped caring about affordability.
Strong domestic competition has made low prices an expectation in China, forcing automakers to stand out through technology and features, Bain executives told CNBC.
Competitive pricing is basically a prerequisite for customer consideration.
Claus Striker
leader of Bain’s Global Automotive & Mobility practice
Stricker expects Western markets to follow suit, with competitive pricing becoming the baseline and technology playing a bigger role in purchasing decisions. In addition, growing competition from Chinese manufacturers is expected to increase price pressure in Europe, he said.
China’s vehicle exports to Italy more than doubled to 209,258 units in January-August, while UK shipments jumped 86% to 365,672, according to customs figures cited by the China Passenger Car Association.
Meanwhile, the weakening of brand loyalty threatens the profits that manufacturers have relied on for decades. “European producers [have] it was fundamentally based on a business model for decades on brand loyalty,” Stricker said, but that loyalty is slipping away.
More than a third of customers in Western markets are open to new brands entering the market, a Bain survey found. Buyers most interested in autonomous driving technology are also more likely to switch manufacturers for better functionality.
Helen Liu, head and Asia automotive partner at Bain, said younger US and European consumers are closer to Chinese buyers because of their openness to technology, adding that Western manufacturers will have to “up their game” to keep those customers.
But monetizing these features can be difficult.
While Stricker said mass-market buyers often expect more advanced driving technology rather than carrying a hefty premium, Liu added that demand leaves Chinese and Western manufacturers “climbing a different mountain.”
Emerging Chinese players need to build their brands, while Western incumbents need to strengthen their technology offerings. All players must keep prices competitive.
Manufacturers who can close their own gaps without pricing themselves out of consideration for buyers will gain the most when the industry consolidates, according to Bain.
– CNBC’s Evelyn Cheng contributed to this story.