Though Chinese car brands are effectively locked out of the U.S. market, the market’s inflated prices may force the issue.
A Cox Automotive survey of U.S. consumers and auto dealers shows both the obstacles and the opportunities in a Chinese entry that’s looking more and more likely.
An American’s vacation to Latin America or Europe these days makes it clear Chinese auto brands have made significant inroads into those markets, and China-based BYD Auto surpassed Tesla last year as the world’s No. 1 electric-vehicle maker.
Cox’s research found that though Chinese brands would have a their jobs cut out for them in wooing American consumers, there are openings to their entry.
The most obvious hurdle lies in many Americans’ ignorance of Chinese auto brands, including U.S. auto dealers themselves.
Almost half of consumers know about Chinese automakers, few have brand-level awareness. The highest awareness is around electric and hybrid vehicle maker BYD at 35%, but when it comes to familiarity, that drops to 17%. Just a quarter of U.S. dealers, meanwhile, are familiar with BYD.
When it comes to the idea of considering a Chinese car brand, U.S. consumers, quality appears to be a sticking point for many. The Cox survey found just about a third giving the brands high marks on durability, quality, safety and reliability.
Still, price can change consumer attitudes toward Chinese brands. Cox found in the study that when deep discounts make them less expensive than U.S. brands, American consumers are much more willing to buy them, especially those in price-sensitive segments.
In fact, if Chinese brands were sold in partnership with U.S. automakers, that could make many U.S. consumers more open to them. Cox found 76% would consider a Chinese brand in that scenario.
Younger consumers are most open to the foreign brands, 69% of generation Z survey respondents saying that they’d consider buying them. That contrasts with the 39% of all consumers who said they’re not very or not at all likely to consider Chinese cars. Directly opposite generation Z are baby boomers, 67% of whom are less likely to consider them.
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