China's First-Time Buyers Have Changed Their Preferences for Cars | Carscoops

      A significant shift is taking place among first-time car purchasers in China, with one option gaining momentum while others are experiencing unexpected declines in interest.

      Nearly half of new buyers are favoring a particular drivetrain.

      There is a notable change in overall demand compared to early 2024.

      Despite market fluctuations, traditional engines continue to attract attention.

      China's electric vehicle sector is not only expanding but also evolving at a pace that outstrips many expectations. With an influx of new models being released rapidly, the country's manufacturers are not merely keeping up with global trends; they are setting them.

      Furthermore, these manufacturers are not creating EVs in isolation. The rising domestic demand, particularly among younger and first-time buyers, is propelling this transition.

      Recent research by Bloomberg Intelligence indicates that a larger percentage of these buyers are now leaning toward electric options than ever before. Specifically, 47 percent of potential first-car buyers in China plan to purchase an EV within the next year, a significant increase from 25 percent in February.

      When considering all potential car buyers in the country, the trend remains consistent, with 52 percent indicating their intention to select an EV for their next vehicle, up from 34 percent in both February and March 2024.

      Interest in extended-range electric vehicles, which provide additional distance through an onboard generator or similar technology, is also on the rise. According to the latest data, 8 percent of surveyed buyers are contemplating one for their upcoming purchase.

      In a notable finding, the Bloomberg survey highlighted a decline in interest towards plug-in hybrids, with only 12 percent of respondents now considering this option for their next vehicle, down from 23 percent in February.

      The appeal of traditional hybrids has diminished even more significantly. Once regarded as a practical alternative, their popularity has dropped from 15 percent in February to just 9 percent by November.

      However, demand for conventional combustion-engine vehicles has not vanished, which is somewhat surprising. Nineteen percent expressed a preference for an ICE model as their next car. It should be noted that the survey involved only 1,000 participants, making it difficult to draw definitive conclusions from this limited sample.

      What’s Driving the Increase?

      As noted by Bloomberg Intelligence analyst Joanna Chen, the competitive pricing of EVs in China has played a crucial role in driving the robust demand for these vehicles.

      “The country outpaces Europe and the US with battery electric vehicles reaching price parity with gasoline cars, while consumers' strong interest in advanced technology features gives local startups and tech giants like Huawei Technologies Co. and Xiaomi Corp. a greater advantage in this competitive market,” she stated.