Angle: Chinese EV manufacturers compete with “luxury equipment”, consumer orientation differs from that of the West | Reuters

BEIJING (Reuters) – China’s electric vehicle (EV) market is becoming increasingly competitive, with companies now lavishing consumers with “luxury features” never seen in other regions. Domestic manufacturers are increasingly trying to attract customers.

Not only emerging brands but even major state-owned manufacturers are incorporating technology and performance that was once thought to be reserved for luxury cars into EVs as low as $20,000 (approximately 3.1 million yen). At $20,000, it’s less than half of the average new car sales price in the U.S., which is $48,000.

However, other Chinese manufacturers, including state-owned companies that were late to EV entry, closed the gap with BYD by unveiling cars priced below $10,000 at the Beijing Motor Show, an international automobile exhibition that began on the 25th.

The market is flooded with EVs and plug-in hybrid vehicles (PHVs) that are slightly more expensive, around $20,000, but what is attracting attention is that these cars are also equipped with interiors and technology similar to those of luxury cars.

Raymond Tsang, a partner at Bain & Co., said China’s younger generation in particular values ​​”technological luxury” when choosing a car, and Chinese manufacturers continue to have an advantage in that aspect. pointed out. “This situation is very different from many Western markets where car buyers still place considerable emphasis on things like quality, reliability, ride comfort and handling.”

In an effort to differentiate themselves, some Chinese manufacturers are adding features to their cars that are interesting to consumers.

The Baojun small EV (starting price around $11,000), sold by a joint venture between General Motors (GM) and SAIC Motor Corporation (SAIC), has a rear section where the driver is kind to other cars. There’s a screen that flashes a “thank you” or heart emoji as a message in case something happens.

State-owned Dongfeng Motor Group’s “Nanmi” has a range of 300 kilometers and costs $9,600, but it has the aerodynamics made popular by Tesla and the ability to open the door from a distance using a smartphone.

Up until now in China, Western brands have been considered more luxurious and of higher quality than domestic brands, but that view is rapidly changing.

McKinsey’s analyst team stated in their China automobile market outlook released in March, “The prestige of foreign brands has almost disappeared.Owners of traditional luxury foreign cars are unilaterally shifting to owners of luxury new energy cars made in China. ” was analyzed.

“You can sing karaoke in the new E-Class,” Källenius said. “They probably won’t have that feature in Germany, and they probably shouldn’t have it, but Chinese customers love it.”

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Sarah Wu is a Reuters correspondent based in Beijing, covering the rise of China’s EV industry – from trade tensions to autonomous driving. Previously, she reported on politics and general news in Hong Kong and technology and politics in Taiwan. Born in Fujian, she grew up up in Ontario and graduated from Harvard.

Kevin Krolicki is Reuters mobility editor, based in Singapore, where he works with a global team of producers covering autos and EVs, airlines, aerospace and the business of space and satellite launches. A Detroit native, he has worked in Tokyo, Los Angeles, Detroit and Washington as a reporter and editor in a 27-year career with Reuters.