Chinese Automakers Must Cut Their Pricing In Order to Entice EU Customers.

A recent study has confirmed that Chinese car manufacturers need to significantly reduce the prices of their cars to attract buyers in Europe. Price is a key magnet for buyers.

In the last five years, more and more cars from Chinese manufacturers have started to appear on the European market. We have already started to get used to new names on the Old Continent, such as Chery, Geely, BYD, XPeng, Dongfeng, Leapmotor, Lynk & Co, etc. Most of them produce electric and hybrid cars at lower prices than their European rivals of similar ranges, but their prices in China are drastically lower.

Despite this, the prices of Chinese cars in Europe are still too high to attract a large number of buyers, and we know that price is a key magnet. The latest study, by the American consulting firm Escalent, shows that Chinese manufacturers need to reduce the prices of their cars by about 30 percent to attract more European buyers.

The study involved 1,600 buyers from Germany, France, Italy, Spain and the UK. According to the study, a 10 percent price drop would attract only one in ten Europeans. Also, 31 percent of those surveyed want a price drop of between 11 and 20 percent to consider a Chinese car.

The same study also shows that Europeans do not have much confidence in cars made in China, which is another factor why Chinese cars attract few European buyers. Buyers still have more confidence in cars made in Europe, Japan, South Korea, and the US. However, as quickly as the “Chinese” are advancing and adapting, the question is how long this order will last.

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