The price war that affected the Chinese automobile market at the end of last year had limited influence on Chinese consumers who purchased cars, according to the latest report by US consulting firm McKinsey & Company.

Over 80 percent of Chinese car buyers polled by McKinsey in the fourth quarter of last year said they purchased a car for reasons other than the price war, according to the McKinsey 2024 China Auto Consumer Insights Survey Report.

The main reasons Chinese consumers bought cars are the restored enthusiasm and confidence after the Covid-19 pandemic, the release of upgraded electric vehicle models, and the shift in interest to more premium autos, the report explained.

Meanwhile, most Chinese people intending to purchase cars priced at less than CNY100,000 (USD13,920) said that the price war actually hindered their decision, the report also showed.

More than 70 percent of Chinese people who own vehicles priced under CNY100,000 told McKinsey that they plan to upgrade their cars despite the price war.

Owners of traditional fossil fuel-powered cars of foreign marques are becoming Chinese-branded new energy vehicle users as domestic NEVs are equipped with sophisticated autonomous driving capabilities and intelligent cockpits, McKinsey noted. However, many consumers still think high-end foreign brands are more reliable in quality and have very attractive prices after the discounts and are worried about risks of Chinese NEV makers shutting down, McKinsey added.

Chinese consumers are considering performance advantages over license plates when buying EVs, as related technologies are becoming more and more mature, the report showed.

But Chinese consumers’ acceptance of NEVs dropped for the first time ever last year, as the percentage of survey respondents willing to buy NEVs rather than fuel-powered cars fell to 62 percent from 68 percent the year before. This indicates the importance of improving NEV recharging infrastructures and sustainable development.

（Picture: Veer）