China in the fast lane

China in the fast lane

The global automotive study was carried out by Simon-Kucher in spring 2023 in Europe, America and Asia. More than 8,235 private customers who are planning to purchase, finance or lease a new or young used car in the near future (including 1,006 in Germany) were surveyed about current and future-oriented topics relating to cars and mobility. The results: Volatile times and rising prices have also left their mark on the automotive industry. Purchasing power in Germany is falling for more than 50 percent of those surveyed. This leads to new purchases being postponed and cars being driven longer: this was stated by 49 percent of those surveyed. Compared to the previous year, the price is becoming even more important for German customers. “Customers are expecting prices to rise and continue to rise, but at the same time they are showing reluctance to make purchases,” says Martin Gehring, Senior Partner and Head of Automotive at Simon-Kucher. “Manufacturers and retailers must specifically address the customer segments that are still willing to buy and at the same time flexibly balance demand and discounts.”

With 89 percent interest in buying an electric vehicle, China is at the top globally. In the flagship market of Norway, the preference for electric vehicles has also increased from 68 to 74 percent. "After interest has risen sharply in recent years, there are currently signs of a standstill at around 53 percent in Germany. What is now important is the right vehicles, a functioning infrastructure and moderate electricity prices in order to turn interested parties into actual buyers and reach additional customer segments," says Martin Gehring. According to the study, German car brands are still the first choice when buying a car in many countries. This also applied to China for a long time. Sales figures from China and the study results show that Chinese customers are now just as happy to use local products: 85 percent of those surveyed in China would consider a German vehicle, 84 percent a Chinese one. In Germany, 18 percent of respondents are open to buying a Chinese brand. Among current electric car drivers the figure is even 26 percent. “Global competitive pressure is increasing,” says Matthias Riemer. "German manufacturers have to reinvent themselves and cannot rest on a Western brand bonus. A clear understanding of what customers expect and what they are willing to spend money on is becoming increasingly important," adds Matthias Riemer.