CHENGDU, CHINA – AUGUST 21: Visitors test drive a new sedan at the 29th Chengdu International Automobile Exhibition held at the West China International Expo City in Chengdu, Sichuan Province, China on August 21, 2026. The exhibition will feature approximately 1,600 vehicles from approximately 120 domestic and international mainstream automobile brands under the theme of “Leading Trends and Moving in New Directions.” (Photo credit: An Yuan/China News Service/VCG, Getty Images)
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According to Bain & Company, the world’s automakers face increasingly demanding customers who demand both competitive prices and superior technology.
The consulting firm’s latest Global Automotive Consumer Survey found that technology and features are the main purchase considerations for 58% of Chinese consumers, ranking higher than price. Price remains the top consideration in the US and Europe, cited by 68% and 62% respectively.
But that doesn’t mean Chinese buyers no longer care about affordability.
Fierce domestic competition has led to expectations of lower prices in China, and automakers are trying to stand out with technology and features, Bain executives told CNBC.
Competitive prices are basically a prerequisite to consider the customer.
Klaus Stricker
Leader of Bain’s Global Automotive and Mobility Practices
Stricker expects Western markets to follow suit, with competitive pricing becoming the norm and technology playing a bigger role in purchasing decisions. Additionally, pricing pressure in Europe is expected to intensify due to increased competition from Chinese manufacturers, he added.
According to customs statistics cited by the China Passenger Car Association, car exports from China to Italy more than doubled from January to August to 209,258 cars, while UK shipments rose by about 86% to 365,672 cars.
Meanwhile, declining brand loyalty is threatening the advantages that established manufacturers have relied on for decades. “European manufacturers have basically based their business models on brand loyalty for decades,” Stricker said, but that loyalty is waning.
Bain research found that more than a third of customers in Western markets welcome new brands entering the market. Buyers most interested in self-driving technology are also willing to switch manufacturers for better features.
Helen Liu, partner and head of Asia automotive at Bain, said young consumers in the U.S. and Europe are closer to Chinese buyers in their openness to technology, adding that Western manufacturers need to “work harder” to retain these customers.
However, monetizing these features can be difficult.
Mr. Stricker said that mass-market buyers often expect advanced driving technology to be included rather than paying a significant premium, but Mr. Liu added that the requirement will leave Chinese and Western manufacturers “climbing different mountains.”
Chinese startups need to build their brands, while Western incumbents need to strengthen their technology offerings. All players must keep prices competitive.
Manufacturers that can fill in the gaps without setting prices without buyer considerations stand to gain the most as the industry consolidates, Bain said.
– CNBC’s Evelyn Cheng contributed to this article.
