Car buyers want lower prices and better technology, Bain survey finds

Chinese consumers rank tech ahead of price, while US and European buyers still put price first

By LineZotpaper

Published21 October 2026

Read Time3 min

Sources2 outlets

A new Bain & Company survey of global car buyers finds customers increasingly expect both lower prices and better technology, with technology and features now ranking ahead of price for consumers in China even as price remains the top concern in the United States and Europe. The findings add pressure on legacy automakers whose brand loyalty is fading, and who face intensifying competition from Chinese manufacturers.

Global automakers must deliver both competitive prices and better technology or risk losing buyers, according to a new Bain & Company consumer survey.

The consultancy's Global Automotive Consumer Survey found that technology and features were a leading purchase consideration for 58% of Chinese consumers, ranking ahead of price. In the United States and Europe, price remained the top consideration, cited by 68% and 62% of buyers respectively. Bain executives told CNBC that intense domestic competition in China has made low prices an expectation, so carmakers must stand out through technology and features, with a competitive price effectively a precondition for being considered by customers at all.

Klaus Stricker, who leads Bain's Global Automotive & Mobility practice, expects Western markets to follow that pattern, with competitive pricing becoming a baseline and technology playing a bigger role in purchasing decisions. He also pointed to growing competition from Chinese manufacturers intensifying pricing pressure in Europe. China's vehicle exports to Italy more than doubled to 209,258 units in January to August, while shipments to the UK rose about 86% to 365,672, according to customs figures cited by the China Passenger Car Association.

Weakening brand loyalty compounds the challenge. Stricker said European manufacturers have basically based their business model for decades on brand loyalty, but that allegiance is fading, with more than a third of customers in Western markets open to new brands entering the market. Buyers most interested in autonomous-driving technology are also more willing to switch manufacturers for better functionality.

Helen Liu, Asia automotive head and partner at Bain, said younger US and European consumers are closer to Chinese buyers in their openness to technology, and that Western manufacturers need to "up their game" to retain those customers. Monetising the features may prove difficult. Stricker said mass-market buyers often expect advanced driving technology to be included rather than carry a substantial premium. Liu said those demands leave Chinese and Western manufacturers "climbing different mountains." Emerging Chinese players must build their brand standing, while Western incumbents must strengthen their technology offerings. The manufacturers that close those gaps without pricing themselves out of buyers' consideration stand to gain the most as the industry consolidates.

Analysis

Why This Matters

The survey signals that competitive pricing is becoming a baseline expectation and technology is becoming the differentiator, a shift that will reshape how automakers compete and what features car buyers get for their money.
Legacy Western brands can no longer count on brand loyalty to retain customers, and Chinese exporters are building volume in Europe through pricing pressure.
The consolidation already under way in the industry is likely to favour manufacturers that close the gap on either price or technology without losing buyers' attention.

Background

Automakers are navigating a long transition toward electric and software-defined vehicles, in which customer value increasingly sits in displays, driver-assistance systems and connectivity rather than the drivetrain alone. Chinese manufacturers built scale at home in a fiercely competitive market, and have been expanding exports to Europe and other regions, intensifying price competition. Western incumbents, which traditionally relied on brand loyalty built up over decades, now face newer entrants with aggressive pricing and strong digital features.

Key Perspectives

Western incumbents: Price still leads as a purchase consideration in the US and Europe, but their loyalty advantage is fading and they must strengthen technology offerings for younger buyers without raising prices. Chinese manufacturers: Their domestic market has made low prices an expectation, so they compete on technology and features, and now must build global brand standing as exports grow. Consumers: More than a third of Western buyers are open to switching to new brands, and those most interested in autonomous driving are the most willing to switch, suggesting tech-savvy buyers will reward whoever delivers the features first. Skeptics: The hard question is monetisation. If mass-market buyers expect advanced driving technology to be included as standard, automakers face a squeeze between costly features and low prices.

What to Watch

Export figures from China to European markets such as Italy and the UK, a direct gauge of pricing pressure on incumbents.
Whether Western brands can hold younger consumers, who resemble Chinese buyers in their openness to technology.
How automakers price autonomous-driving features, given that the buyers most interested in them are most willing to switch brands.

Sources

Checked

12 claims in this story checked against 1 source: 11 supported.

Show each claim

SupportedBain’s survey finds car buyers want lower prices and better technology.Tech: “Global automakers face an increasingly demanding customer: one who wants both competitive prices and better technology, according to Bain & Company.”
SupportedChinese consumers rank technology and features ahead of price.Tech: “Tech and features were a leading purchase consideration for 58% of Chinese consumers, ranking ahead of price”
SupportedPrice is the top consideration for buyers in the United States and Europe, cited by 68% and 62%, respectively.Tech: “In the U.S. and Europe, price remained the top consideration, cited by 68% and 62%, respectively.”
Partly supportedLegacy automakers face intensifying competition from Chinese manufacturers.Tech: “Moreover, growing competition from Chinese manufacturers is expected to intensify pricing pressure in Europe, he added.”
SupportedTechnology and features were a leading purchase consideration for 58% of Chinese consumers.Tech: “Tech and features were a leading purchase consideration for 58% of Chinese consumers, ranking ahead of price.”
SupportedBain executives said low prices have become an expectation in China, making competitive pricing a precondition for consideration.Tech: “Intense domestic competition has made low prices an expectation in China, pushing carmakers to stand out through technology and features, Bain executives told CNBC. Competitive price is basically a precondition to be in consideration of the customer.”
SupportedChina’s vehicle exports to Italy more than doubled to 209,258 units in January to August.Tech: “China’s vehicle exports to Italy more than doubled to 209,258 units in January-August”
SupportedShipments to the UK rose about 86% to 365,672 in January to August.Tech: “while U.K. shipments rose about 86% to 365,672”
SupportedStricker said European manufacturers had based their business model for decades on brand loyalty.Tech: ““European manufacturers [have] basically based their business model for decades on brand loyalty,” Stricker said”
SupportedMore than a third of customers in Western markets are open to new brands entering the market.Tech: “More than a third of customers in Western markets are open to new brands entering the market, Bain's survey found.”
SupportedLiu said Western manufacturers need to “up their game” to retain younger customers who are open to technology.Tech: “Helen Liu, Asia automotive head and partner at Bain, said that younger U.S. and European consumers are closer to Chinese buyers in their openness to technology, adding that Western manufacturers need to “up their game” to retain those customers.”
SupportedLiu said the demands leave Chinese and Western manufacturers “climbing different mountains.”Tech: “Liu added that those demands leave Chinese and Western manufacturers “climbing different mountains.””

Correction

21 October 2026An earlier version of this story attributed to Helen Liu an observation that mass-market buyers often expect advanced driving technology to be included rather than carry a substantial premium. The observation was made by Klaus Stricker.