Car buyers are demanding lower prices and better tech. Automakers must deliver both
Bain says tech leads purchase considerations in China while price remains No. 1 in the U.S. and Europe, as pressure mounts on Western carmakers.
TL;DR
- Consumers are demanding both competitive prices and better technology from automakers.
- In China, technology and features are the primary purchase consideration for 58% of consumers, surpassing price.
- In the U.S. and Europe, price remains the top consideration, cited by 68% and 62% of consumers, respectively.
- Intense domestic competition in China has made low prices an expectation, pushing carmakers to differentiate through technology.
- Western markets are expected to follow China's trend, with competitive pricing becoming a baseline and technology becoming more influential.
- Growing competition from Chinese manufacturers is increasing pricing pressure in Europe.
- Weakening brand loyalty threatens established manufacturers, with over a third of customers in Western markets open to new brands.
- Buyers interested in autonomous-driving technology are more willing to switch manufacturers for better functionality.
- Monetizing advanced features is difficult, as mass-market buyers often expect them to be included rather than carry a premium.
- Chinese players need to build brand standing, while Western incumbents must strengthen technology offerings, all while keeping prices competitive.