Auto Trader’s head of strategy and insights, Marc Palmer, offered insight into consumer attitudes towards new entrants at the NFDA’s Driving Automotive 2024 which took place at Lord’s Cricket Ground last week.
The presentation explored the extent to which UK consumers are open to new entrant brands, specifically Chinese brands.
Based on a survey of 4,000 people, research suggests that consumers largely do not fixate on where a car is built. Although 1 in 4 like brands with a long history, brand name does not matter and where the brand originates from does not matter.
Marc Palmer, head of strategy and insights at Auto Trader, said: “Awareness for most car brands is very high as you would expect, especially established car brands. That is very different for Chinese new entrant brands.
“BYD has the highest level of awareness as you would hope given the investment in its Euros marketing campaign. Awareness of most of the others is below 10%. That will inevitably change over the next five years or so.”
Auto Trader gave consumers a list of words and asked which ones they associated with brands.
For Chinese brands, 1 in 4 said advanced technology, 1 in 5 said innovative and the third highest score was poor quality, slightly ahead of futuristic.
Palmer added: “What that tells us is there is loads of room to shape what the story is for brands from China. Whatever they want it to be.
“French cars have been in the market for over 100 years. Their scores aren’t much higher than China’s. With all that heritage, they do not have much of a story in people’s minds. The solid one is Germany but the room is there for Chinese brands to shape their story.”
Research suggests a number of consumers are concerned about data security and privacy. For those over the age of 55, this number jumps from 31% to 41%
Consumers also have concerns about quality, customer service, support with aftersales and safety standards.
However, they would be reassured by safety ratings, expert reviews and proximity to a retailer that stocks these cars.
Auto Trader also asked consumers what price differential they would expect for a new entrant brand. Consumers suggested that it would need to be at least £3,000 cheaper than something similar from an established brand.