麥肯錫：2024中國汽車消費(fèi)者洞察報(bào)告（英文版）-2024-08-市場解讀

McKinseyChinaAutoConsumerInsights2024

Evolution,notInvolution

April2024

Aboutthesurvey

Inthefourthquarterof2023,wesurveyed2,449autobuyersin19majorcitiesacrossChinarepresentingarangeofdemographicattributes,

includingfirst-tier,second-tier,third-tier,andfourth-tiercities,as

wellasNorth,Northeast,East,CentralandSouth,Southwest,and

NorthwestChina.Thereportdividedrespondentsbyage,gender,

income,purchasingexperience,andcurrentvehicletype.Basedonthedecision-makingprocessduringcarpurchasing,thissurveyprovides

deepanalysisofconsumerattitudes,vehiclepreferences,purchasinghabits,drivingexperiences,andafter-salesneeds.

Authors

MingyuGuan,Beijing

ThomasFang,ShanghaiBillPeng,HongKong

TonyZhou,Shanghai

Coverimage:@GettyImages

IIMcKinseyChinaAutoConsumerInsights2024

Executivesummary

TherapiddevelopmentinelectrificationandsmartificationoftheChinaautoindustryisundeniablyshapingandtransformingthepreferencesofautoconsumersinChina.

Reciprocally,theevolvingpreferencesandbehaviorsofChineseconsumersareexertinga

profoundinfluenceontheChinaautoindustry,compellingittoembraceelectrificationand

smartificationwithacceleratinginvestmentsinthesetwoareas.SuchmutualinfluenceisnotonlypivotalforthefutureoftheChineseautoindustrybutalsopoisedtoprofoundlyimpactthetechnologydevelopment,businessmodels,andcompetitivelandscapeoftheglobalautoindustryinthenextfivetotenyears.

TogaindeeperinsightsintotheevolvingpreferencesofChineseautoconsumers,McKinseyrecentlyconductedthelatestroundofitsannualChinaAutoConsumerSurvey.Basedontheresponses,wehaveidentifiedthefollowingsixkeyfindings.

1.Consumersarecontinuingthetrendoftradingup

TheChinaautomarketcontinuestointroducevariouscompetitivenewmodelsofsmartEVs,graduallyincreasingtheattractivenesstoconsumersandshiftingtheirattention

towardmid-andhigh-pricedmodels.Meanwhile,escalatingpricecompetition’simpact

onconsumerdecisionmakingremainslimited,with80percentofrespondentsindicatingthatpricecompetitionhasn’tacceleratedtheirvehiclepurchasedecisions.

2.PerceptionsofEVandICEbrandsarediverging

MultinationalOEMsnolongercommandpremiumprices,andtheirbrandhalosarealmostgone,atrendespeciallyevidentintheEVindustry.Meanwhile,ownersoftraditional

premiumMNCbrandsareswitchingtopremiumChineseEVbrands—atrendflowingalmostentirelyinonedirection.

3.EVpenetrationisrisingfast,withahiddenconcernofcharginganxiety

EVconsumersmakingpurchasingdecisionsareincreasinglyconsideringthe

performanceofthevehiclesthemselves,ratherthanregulatoryincentivessuchasfreelicenseplates.Also,theacceptanceofEVsbyChineseconsumershasseenitsfirst-everdeclineasEVcharginginfrastructureisdeployedslowlyinsomeareas.Thesituation

highlightstheextremeimportanceofoptimizingcharginginfrastructuretosupportthesustaineddevelopmentoftheEVsector.

McKinseyChinaAutoConsumerInsights20241

4.Direct-to-consumers(DTC)modeliswinningconsumertrusts,thankstoitshightransparencyacrosscustomerjourney

PremiumChineseEVbrandshaveadoptedomnichanneldirect-to-consumer(DTC)

models,whichhaveachievedremarkablecustomersatisfaction.Eveninafter-sales

maintenance,wherethepreviousyear’ssurveyfoundaperformancegapwithtraditionalOEMs,premiumChineseEVbrandsarecatchingup.

5.Autonomousdriving(AD)enjoysgreatpopularity,butchanceofmonetizationiscomingunderpressure

ConsumerdemandforADsolutionscontinuestoincrease.However,thefree-software

strategyoftoptechnology-orientedOEMshasmadeconsumerslesswillingtopayforADtechnologies.Amongthosewillingtopay,theamounttheyarewillingtopayhasdeclined.

6.Consumersareawareoflow-carbonvehiclesbutlesswillingtopayapremiumforthem

Nearly70percentofChineseconsumersareawareoflow-carbonvehiclesandwillingtopayextraforthem,butboththewillingnesstopayandtheamounttheywouldpayhavedeclined.

Weseetheindustryevolving,notinvoluting,underpressure.GuidedbyChineseconsumers,theEVsector’sgrowthatfullspeedisnowaninevitabletrend,andnewconsumer

preferencesandbehaviorsareemerginganddeveloping.However,thefundamental

commercialbehaviorsareconstant:meetdiverseconsumerneedsandcreatereasonableeconomicvalue.

2McKinseyChinaAutoConsumerInsights2024

1

Consumersare

continuingthetrendoftradingup

Keyinsights:

—TradingupcontinuestobepopularamongChineseconsumers,andthemarketshareofpremiumvehiclescontinuestogrow

—Meanwhile,theshareofconsumerswhosaytheywouldliketotradedownhasdroppedsignificantlycomparedwiththeresultsofthesurveyconductedayearearlier

—TheintensepricecompetitionthathasbeenoccurringinChinahashadalimitedimpactonstimulatingconsumption

McKinseyChinaAutoConsumerInsights20243

Thedesiretotradeupisboostingsalesofpremiumvehicles

Overthepastfewyears,moreandmoreChineseconsumershavebeenupgradingtheirvehicles.Asaresult,themarketshareofpremiummodelsincreasedfrom10percentofpassengervehiclesin2016to23percentin2023(Exhibit1).

Exhibit1

InChina,thepremiumsegmentofpassengervehiclescontinuestopostdouble-digitgrowthin2023

PassengervehiclessalesinChinabysegments

millionunitsGrowthCAGR

XX%EVpenetrationrateinsegment2016~20222023vs.2022

2.6%

-3.9%

None

Premium

11.2%

19.4%

Premium1

100%=2323222120212022-1.9%6.1%

90%

89%

87%

85%

81%

80%

14%

79%

26%

77%

33%

23%

37%

20%

16%

21%

25%

19%

15%

11%

13%

10%

2017201820192020

2016

202120222023

1.Premiumcardefinition:premiumbrandsbasedonconsumerperception,includingtraditionalpremiumbrandsandemergingpremiumEVbrands.

Source:ChinaNewCarInsuranceRegistrationDatabaseMcKinsey&Company

Accordingtotheresultsofourlatestsurvey,Chineseconsumersmaintainastrongdesiretoupgradeintheirnextcarpurchase,particularlythosewhoseexistingcarispricedbelowRMB200,000(Exhibit2).

—MostlikelytotradeuparethosewhoseexistingcarispricedbelowRMB100,000:morethan70percentsaytheyintendtotradeupwhentheypurchasetheirnextcar;

—Over50percentofcarownerswhoseexistingcarispricedatRMB100,000toRMB150,000saytheywilltradeup;

—Nearly50percentofrespondentswhoseexistingcarispricedatRMB150,000toRMB200,000saytheywilldoso;

—ForthepricesegmentaboveRMB200,000,themostcommonchoiceamongconsumersistostaywheretheyare.Inthatsegment,premiumsmart-EVmodelswithgreatvalueformoneyarecontinuallybeingintroducedtothemarket.Theseattractrelevantconsumer

groups,inspiringtheirrationalthinkinginsteadofconstantlypursuingmodelswithahigherprice.

4McKinseyChinaAutoConsumerInsights2024

Exhibit2

Chineseconsumers’desiretoupgradetheirvehicleremainsstrong

Budgetforthenextcarvs.priceofcarcurrentlyowned

%ofrespondents

Budgetforthenextcar,

RMBthousands

StayinthesamerangePrefertotradeup.PrefertopaylessHighest%group

<100

100-150

150-200

200-300

Priceofcarcurrently

owned,

RMBthousands

300-400

>400

<100

100-150

150-200

200-300

300-400

>400

<100

100-150

150-200

200-300

300-400

>400

43%

57%

0%

0%

0%

0%

12%

34%

52%

2%

0%

0%

0%

16%

37%

44%

3%

0%

0%

0%

21%

47%

32%

0%

0%

0%

0%

20%

57%

23%

0%

0%

0%

0%

10%

90%

<100

100-150

150-200

200-300

300-400

>400

27%

67%

6%

1%

1%

0%

0%

46%

52%

2%

0%

0%

0%

1%

54%

45%

0%

0%

0%

0%

2%

81%

17%

0%

0%

0%

0%

3%

68%

29%

0%

0%

0%

1%

7%

92%

2022

2023

Source:McKinseyChinaAutoConsumerSurvey(2023&24)McKinsey&Company

McKinseyChinaAutoConsumerInsights20245

Theshareofconsumersseekingadowngradehasfallensignificantly

Inlastyear’sreport1,manyconsumersineachpricesegmentsaidtheyplannedtopurchasetheirnextcarinalower-pricesegment.However,inthelatestsurvey,amuchsmallershareofrespondentsexpressedthesameintention(Exhibit3).AmongthecarownerswhoseexistingcarispricedatRMB150,000orless,theshareseekingalowerpricedecreasedtozerofrom12percentin2022.InthesegmentofRMB150,000toRMB400,000,theshareofthose

intendingtopaylessdroppedfromabout20percentin2022toabout2percentin2023.

Exhibit3

Theshareofconsumersplanningtodowngradeissignificantlylowerin2023thanin2022

Consumersexpectingto“downgrade”bypriceofcarcurrentlyowned

%ofrespondents,RMBthousands

20222023

20

16

12

10

8

0

1

2

3

21

100-150150-200200-300300-400>400

Source:McKinseyChinaAutoConsumerSurvey(2023&24)McKinsey&Company

Twofactorsseemlikelytohavecontributedtothesignificantdecreaseoftheshareofthosewhotendtodowngrade:

—Consumersshowrelativelystrongerenthusiasmandconfidencefornew-carpurchasesinthepost-pandemicera.

—ChinaautomakerscontinuetointroducehighlycompetitivenewmodelsofsmartEVs.

In2023,morethan40newEVmodelswerelaunchedinthepricesegmentaboveRMB200,000alone,andalmostallmodelswereequippedwithfeaturessuchascomfort,

infotainmentfunctions,autonomousdriving(AD),smartcockpit,andultra-fastcharging.Asthesenewmodels’attractivenesstoconsumersgraduallyincreases,consumersshifttheirattentiontomodelsinhigher-pricesegmentsorstayinthesamepricesegmentoftheirexistingvehicleinsteadofseekingalower-pricedvehicle.

1ThomasFang,MingyuGuan,BillPeng,andTonyZhou,“McKinseyChinaAutoConsumerInsights2023,”July2023.

6McKinseyChinaAutoConsumerInsights2024

PricecompetitionthathasbeenoccurringinChinahashadalimitedimpactonstimulatingconsumption

CompetitionbasedonpriceisgraduallyintensifyingintheChinaautomarket.Withmind-blowinghigh-techfunctions(forexample,cityareanavigation-on-autopilot,advanced

smartvoiceassistant,electricsuctiondoors,800Varchitecture,ultra-fastcharging,andair

suspension)atattractiveprices,thenewlylaunchedmodelskeeprefreshingconsumers’priceperceptions.Didtheintensifyingpricecompetitionstimulatethedesiretopurchaseanew

car,ordiditsimplyhelpcreateagroupofconsumerswhowanttowaitonthesidelines?

Oursurveyaskedconsumershowthepricecompetitionhasaffectedtheirdecisionaboutpurchasinganewcar.Theresponsessuggestthatthattheimpactwaslimited:

—Thelargestshareofconsumers(64.1percent)saytheyareneutral,meaningthepricecompetitiondoesnotaffecttheirpurchasedecision(Exhibit4).

—Another16.4percentsaytheimpactisnegative―thatis,thepricecompetitionwillinhibitordelaytheirpurchase.

—Theremaining19.4percentexpressapositiveimpact,meaningthepricecompetitionhasboostedoracceleratedtheirpurchasedecisions.

Exhibit4

Pricecompetitionhaslimitedimpactonconsumers,withmorethan80percentofconsumersreportnopositiveroleforpricecompetitionintheirpurchase

decisions

‘Doesthepricecompetitionmakeapositiveornegativeimpacttoyournewcarpurchasedecision?’

Consumerattitudestowardsthepricecompetition

%ofrespondents

64.1

Neutral:Hasno

impacton

purchasedecision

Negative:Makesmemorehesitanttomakepurchasedecision

16.4

Positive:

19.4

Triggersoraccelerates

Total

purchasedecision

100.0

80.5%

ofconsumers

reportingnopositiveimpactfromprice

competitionon

purchasedecision

Source:McKinseyChinaAutoConsumerSurvey(2023&24)McKinsey&Company

McKinseyChinaAutoConsumerInsights20247

Theproportionofrespondentssayingtheimpactispositiveisaboutthreepercentage

pointshigherthanthepercentagereportinganegativeimpact.Asaresult,pricecompetitionappearstohavestimulatedtheoverallChinacarmarket,butonlyslightly.Inaddition,the

segmentsreportinganeutralornegativeimpacttotalmorethan80percentofrespondents,meaningmostpeoplesurveyedobservenopositiveroleofpricecompetitionintheirpurchasedecisions.Theevidencepointstoalimitedoverallimpactofcompetingonprice.

Theimpactofpricecompetitionvariesaccordingtothepriceofrespondents’currently

ownedcars.Inthelow-pricesegment,moreconsumersciteanegativeimpactthanapositiveone,andinthemiddle-pricesegment,thedifferencebetweenpositiveandnegativeimpactisonly3.1percentagepoints(Exhibit5).Thenetimpact(positiveminusnegative)isgreatestforthepricesegmentaboveRMB300,000,at4.4percentagepoints.Weinterpretthistomeanthatconsumersinthelowandmediumpricesegments,facingastretchofpricecompetition,aremorelikelytoexpectfurtheraggressivepricecuts,sotheyadoptawait-and-seeattitude.Consumersinthehigh-pricesegmenthavestrongerpurchasingpowerandcanrespond

morepositivelytofavorableprices.

Exhibit5

Pricecompetitionhavelimitednetimpactforvolumesegmentconsumers,andmayevenresultinlosses

‘Doesthepricecompetitionmakeapositiveornegativeimpacttoyournewcarpurchasedecision?’

Consumerattitudestowardsthepricecompetition(bypriceofcarcurrentlyowned)

%ofrespondents

100%

Neutral:Hasnoimpactonpurchasedecision

Negative:Makesmemorehesitanttomakepurchasedecision

Positive:Triggersoracceleratespurchasedecision

Netimpactcausedby

pricecompetition,positiveviewsminusnegative

views,percentagepoints

57.6%

61.6%

71.8%

21.9%

17.6%

11.9%

20.5%

20.8%

16.3%

<100100~300>300Priceofcar

currently

owned,RMBthousands

-1.4%3.1%4.4%

Source:McKinseyChinaAutoConsumerSurvey2024McKinsey&Company

8McKinseyChinaAutoConsumerInsights2024

2

PerceptionsofEVandICEbrands

arediverging

Keyinsights:

—Consumers’brandperceptionshavesignificantlydiverged:theirinitialconsiderationsetdiffersaccordingtothebrandortypeofcartheyown

—WhilepremiumChineseEVbrandshavesuccessfullyattractedconsumerswith

theircompetitiveedgeinsmartification,manyownersoftraditionalpremiumMNCbrandsareswitchingtopremiumChineseEVbrands

—Consumers’perceptionsofChinesecarbrandshavegreatlyimprovedalongbothtraditionalandemergingevaluationdimensions,whilethebrandhalooftraditionalmultinationalcompany(MNC)playersisincreasinglychallenged

—NearlyhalfofChineseconsumersarereluctanttopayhighpremiumsforMNCbrands,andtheproportionisincreasing

McKinseyChinaAutoConsumerInsights20249

Consumers’brandperceptionshavesignificantlydiverged;theirinitialconsiderationsetdiffers

accordingtothebrandortypeofcartheyown

CompetitioninChina’spassengervehiclemarketisgettingmoreandmoreintense.Several

leadingnewEVbrandsaregainingconsiderabletraction,whilesomeweak,oldbrandsare

phasedout.Overthepastthreeyears,16newbrandshaveenteredtheautosector,eachwithamarketsharegreaterthan0.1percent.Inthemeantime,sevenoldbrandshavegradually

vanishedfromthesightofconsumers(Exhibit6).

Exhibit6

CompetitioninChinapassengervehiclemarketisintensifyingasnewbrandscatchupandoldbrandsarephasedout

MajorbrandsintheChineseautomarket1

BrandswithMS>2%BrandswithMS0.5%-2%BrandswithMS0.1%-0.5%

1670

60

61

4

16

12

18

13

7

7brandsallwithmarketshare

(MS)of0.1%-0.5%in2020

Among16new

brands,4brandshaveanMSof

0.5%-2%in2023;12brandshave

anMSof0.1%-0.5%in2023

20

20

16

34

28

26

201520BrandsphasedoutNewbrands2023

1.Onlyincludethebrandswithmarketshareover0.1%,whichoverallaccountforover99%ofChinatotalPVmarket.Source:ChinaNewCarInsuranceRegistrationDatabase

McKinsey&Company

Assignificantchangestakeplaceinthebrandlandscape,howwillconsumerperceptionsofindividualbrandsevolve?Respondents’answerstoseveralsurveyquestionsshedsomelightonthisquestion.

10McKinseyChinaAutoConsumerInsights2024

Whenconsumersconsiderpurchasingacar,theydevelopaninitialconsiderationset(ICS),

collectmoreinformationabouteachbrandinthatICS,andthenmakepurchasedecisions.

Accordingtoourprevioussurveys,aconsumer’sICScontainsjustafewbrands—twotothreeonaverage—andthebrandpurchased,regardlessofpowertraintype,usuallycomesfrom

theirICS(Exhibit7).Itisnoteworthythatwhiletheaveragenumberofbrandsinconsumers’ICSisroughlyunchanged,thelikelihoodofthefinalpurchasecomingfromthatsetofbrandshasincreasedconsiderably.Inotherwords,consumers’purchasedecisionsaregettingmorefocused.OEMscanbenefitfromthistrendbyworkingmoreactivelytoputtheirbrandsintoconsumers’ICSandcaptureagreatermindsharewhenconsumersdevelopanintentionto

purchaseacar.

Exhibit7

Although#ofoptionalbrandsincreases,ChineseconsumerscontinuetokeepashallowICS(initialconsiderationset)

ICStypicallyonlyincludes2-3brands......85%offinaldecisionsarefromICS

NumberofbrandsinICS,#ofbrands

2.9

2.7

2.5

2.8

201921222023

%finaltransactionswithinICS

20222023

85%

87%

79%

77%

ICEonwersEVowners

Source:McKinseyChinaAutoConsumerSurveyacrosstheyearsMcKinsey&Company

Amorein-depthanalysisofthedatashowsthatICSmixesvaryfordifferentgroupsof

consumers.Forexample,consumerswhopurchasedamassbrandvehicleoverthepastsixmonthsdifferintheirconsiderationofMNCversusChinesemassbrands(Exhibit8):

McKinseyChinaAutoConsumerInsights202411

Exhibit8

ConsumersinthemassbrandsegmentshowdifferentconsiderationinICS(initialconsiderationset)

ICSmixofdifferentgroupsofcustomerswhopurchasedanewcarinthepast6months

%orrespondents

Atleast1traditionalmassMNCbrandinICS

Atleast1traditionalmassChinesebrandinICS

TraditionalmassMNCbrandbuyers

98%

48%

Traditionalmass

ChineseICEbuyers

53%

96%

TraditionalmassChineseEVbuyers

48%

95%

Source:McKinseyChinaAutoConsumerSurvey2024McKinsey&Company

—AmongrespondentswhopurchasedtraditionalmassMNCbrands,traditionalmassMNCbrandsappearinnearly100percentofrespondents’ICSs,butChinesemassbrandsarepresentinonlyabout50percent.

—AmongthosewhopurchasedtraditionalmassChinesebrands,theoppositeholds:traditionalmassMNCbrandsappearinonlyabout50percentofrespondents’ICSs,whereastraditionalmassChinesebrandsappearinnearly100percent.

12McKinseyChinaAutoConsumerInsights2024

Inthisexample,thedifferencesinICSmixbetweenthedifferentgroupsofmassbrand

vehicleownerstendstobeconsistentwithrespondents’highlydivergentbrandperceptions,includingtheirawarenessofChineseandMNCbrands(Exhibit9):

—FortherespondentswhoowntraditionalmassMNCbrands,thetopfivemostrecognizedmassbrandsareallMNCbrands.

—TheownersoftraditionalmassChinesebrandsincludetwoChinesebrandsintheir

choicesofthetopfivemostrecognizedmassbrands.Also,theyaremuchlesslikelytorecognizetop-rankingMNCbrandsthantheownersofMNCmassbrandsare.

Exhibit9

Asimilarperception-divergeishappeningtomasssegmentICEconsumers’brandrecognition

Top5mostrecognizedICEbrands(mass)bydifferentgroupsofcustomers

%ofrespondents

TraditionalmassChinesebrand

TraditionalmassMNCbrandowners

MassGermanbrand

60

MassJapanesebrand

32

MassJapanesebrand

31

MassUSbrand

22

MassUSbrand

16

TraditionalmassChinesebrandowners

MassGermanbrand

32

MassJapanesebrand

18

MassJapanesebrand

16

MassChinesebrand

12

MassChinesebrand

12

Source:McKinseyChinaAutoConsumerSurvey2024McKinsey&Company

McKinseyChinaAutoConsumerInsights202413

SimilardifferencesinICSmixanddivergenceofbrandperceptionsaremoreevidentinthesurveyresultscollectedfrompremiumbrandowners:

—AmongrespondentswhopurchasedthreemajorpremiumGermanbrands,the

appearancerateofthesethreebrandsintheirICSisnearly100percentforICEvehicleownersandnearly90percentforEVowners(Exhibit10).Incontrast,fewpremium

ChineseEVbrandswereintheseconsumers’ICS:almostzeroforICEvehiclebuyersandlessthanone-thirdforEVbuyers.

—Incontrast,consumerswhopurchasedpremiumChineseEVbrandsrarelyincludethe

threepremiumGermanbrands(appearancerateof14percent).Andfortheseowners,theICSappearancerateofpremiumChineseEVbrandsis91percent.

Exhibit10

Consumersinthepremiumvehiclesegmentalsoshowsignificantly-differentconsiderationinICS

ICSmixofdifferentgroupsofcustomerswhopurchasedanewcarinthepast6months

%orrespondents

Atleast1premium

GermanbrandinICS

Atleast1

premiumChineseEVbrandinICS

ICEbuyersof3majorpremiumGermanbrands1

96%

3%

EVbuyersof3majorpremiumGermanbrands1

89%

30%

PremiumChineseEVbuyers2

14%

91%

1.Incl.buyersof3majorpremiumGermanbrands.2.Incl.buyersof6premiumChineseEVbrands.

Source:McKinseyChinaAutoConsumerSurvey2024

McKinsey&Company

14McKinseyChinaAutoConsumerInsights2024

ThedistinctdifferencesinICSmixbetweenpremiumsegmentownersarealsoconsistentwiththeirdivergentbrandperceptions(Exhibit11):

—Respondents,whenaskedtoidentifythebrandstheyconsider“premium”,regardlessofpowertraintype,mentiononlytraditionalMNCbrandsknownfortheirICEvehicles.

—WhenaskedtofocusonpremiumEVbrands,respondentsmostoftenmentionthree

emergingEVbrands(thatis,brandsthatsellonlyEVmodels).ThetoppositionisoccupiedbyanAmericanEVbrand,followedbytwoChineseEVbrands.ThethreepremiumGermanbrandsofferingbothEVandICEvehiclesrankfourth,fifthandseventh.

Exhibit11

ThehugedifferenceinICS-mixamongdifferentvehiclegroupsiscausedbyconsumers’divergingperceptionsonpremiumbetweenICEvs.EV

Top10brandsviewedas“premiumbrand(regardlessofpowertraintype)”

amongconsumers

%ofrespondents

50

23

13

69

63

53

20

17

17

14

Premium

Premium

Premium

Premium

Premium

Premium

Premium

Premium

Premium

Premium

German

German

German

German

Italybrand

British

USbrand

British

British

Japanese

brand

brand

brand

brand

brand

brand

brand

brand

Top10brandsviewedas“premiumEVbrand"amongconsumers

%ofrespondents

EVbrands50

42

34

29

26

24

20

17

1616

Premium

Premium

Premium

Premium

Premium

Chinese

Premium

Premium

Premium

Premium

USEV

Chinese

Chinese

German

German

EVbrand

German

Chinese

Chinese

Chinese

brand

EVbrand

EVbrand

brand

brand

brand

EVbrand

EVbrand

EVbrand

Source:McKinseyChinaAutoConsumerSurvey2024McKinsey&Company

EventheconsumerswhoownamajorpremiumGermanbrandrankthesethreeGermanbrandsbehindtheAmericanEVbrandandtwoChineseEVbrands(Exhibit12).

McKinseyChinaAutoConsumerInsights202415

Exhibit12

Evenownersofthe3majorGermanbrandownersconsiderEVbrandsmorepremiumintheEVdomain

Top10brandsviewedas“premiumEVbrand"among3majorGermanbrandowners

%ofrespondents

44

3535

3131

EVbrands

28

23

21

1414

Premium

Premium

Premium

Premium

Premium

Chinese

Premium

Premium

Premium

Premium

USEV

Chinese

Chinese

German

German

EVbrand

German

Chinese

Korean

Japanese

brand

EVbrand

EVbrand

brand

brand

brand

EVbrand

brand

brand

Source:McKinseyChinaAutoConsumerSurvey2024McKinsey&Company

Throughfurtherresearch,wefoundthatselectioncriteriadifferamongownersofpremiumvehiclesbearingdifferentbrands.RespondentswhoownpremiumChineseEVindicate

thattheychosepremiumChineseEVbrandsprimarilybecausesuchbrandswieldtechnicaladvantagesinAD,smartcockpit,andoriginalEVplatforms(Exhibit13).

Interestingly,whenownersoftraditionalpremiumMNCEVwereaskedsimilarquestions,

theyoftenidentifyabrand-relatedreasonasthekeyconsiderationfortheirdecision.SuchresponsesincludesapreferenceforthetraditionalpremiumMNCbrandsandalackof

confidenceinpremiumChineseEVbrands(Exhibit14).

16McKinseyChinaAutoConsumerInsights2024

Exhibit13

SmartfeaturesarecorereasonsconsumersgiventobuyEVfrompremiumChineseEVbrands

ReasonsforbuyingEVfrompremiumChineseEVbrands,vstraditionalpremiumMNCbrands

%ofrespondents1

SmartificationfeaturesBranding

BetterADperformance

BettersmartcockpitperformanceAttractiveexteriordesign

NativeEVplatform

Biggerspace&comfort

Convenientaftersalesservice

BetterOTA(over-the-airupdate)capability

Technologytoaddressrangeanxiety(e.g.batteryswapping,REEV2)

BrandingoftraditionalpremiumMNCbrandsmeaninglesstome

Betterdrivingperformance

62

51

51

47

43

40

42

39

39

65

1.Incl.ownersof6premiumChineseEVbrands.

2.Rangeextendedelectricvehicle.

Source:McKinseyChinaAutoConsumerSurvey2024McKinsey&Company

McKinseyChinaAutoConsumerInsights202417

Exhibit14

…whilethetraditionalpremiumEVbuyersaretriggeredbybrandingeffects

ReasonsforbuyingEVfromtraditionalpremiumMNCbrands,vspremiumChineseEVbrands

%ofrespondents1

Branding

Trustonquality

Attractiveexteriordesign

EVplayersmaygobankruptcy

Attractivepriceduetodiscounts

Owningatraditionalpremiu