Automotive Trends: Global Expansion of Chinese EVs (Simon-Kucher)

Summary

• 2020 to 2022 marked the fastest-growing period for electric vehicle (EV) sales, despite Covid-19.§1
• Manufacturers need to offer at least 400 km of real-world range to satisfy most customers.§2
• Keeping the charging duration below 40 min for 300 km range would cover the expectations of most customers.§2
• 89% of customers in China would consider an EV for their next vehicle, compared with 51% for EV in the USA.§3
• In China, 71% are open to a subscription model and 74% find a more dynamic pricing approach fair.§3
• The US, Western Europe and the Nordics showed consideration of Chinese brands at only around 20%.§4
• Simon-Kucher's Global Automotive Study surveyed more than 8,000 car buyers from 20 countries.§5

Key insights

1. Chinese brands are dominating domestic EV sales, offering EVs in all price segments.§1
2. Advances in battery technology and heavy investment in charging infrastructure are making the drawbacks of high purchase price and range anxiety vanish.§2
3. China has the most open-minded customer base toward technology and new business models such as battery leasing and subscription pricing.§3
4. EV owners, EV considerers and younger generations show a significantly higher consideration rate for Chinese brands abroad.§4
5. With EV consideration stabilizing in Europe and the US, consideration for Chinese brands is unlikely to increase significantly in the short term.§4
6. Germany and Japan are in the top three of every country's consideration, a legacy of the ICE era.§5