Top 5 Reasons to Purchase an NEV brand in China

Source: BYD

Local market research firm Landroads conducted a survey of 6,700 participants in China to better understand the different drivers of purchase intentions of new energy vehicles.

In the questionnaire, the respondents were given 18 multiple choices of potential reasons that would nudge their decision making in purchasing a NEV, including the safety, smart driving, and branding.

Here are the top 5 reasons for choosing an NEV brand.

5. Driving range

Driving range, ranked 5th, was selected by 31.8% of participants as a key factor influencing their preferences.

This metric includes nominal range, which refers to the maximum distance advertised by the manufacturer under ideal conditions, and actual range, which represents the real-world performance influenced by factors such as driving habits, terrain, weather, and vehicle load.

Source: NIO

It also encompasses range attenuation, highlighting the reduction in range caused by battery degradation, the use of auxiliary systems like air conditioning, or other specific circumstances.

Participants emphasized the importance of a reliable driving range to minimize range anxiety and ensure a consistent driving experience across different conditions.

Chinese automakers have taken different paths to address range anxiety, from launching extended-range EVs like Li Auto to offering battery-swappable vehicles like NIO.

4. Safety

Safety, ranked 4th and chosen by 32.0% of participants, is a key factor in vehicle selection, encompassing elements like structural integrity, safety configurations, braking performance, and visibility.

Programs such as Euro NCAP and C-NCAP play vital roles in strengthening consumer confidence by providing rigorous safety assessments.

Source: Euro NCAP

Euro NCAP is globally recognized for its comprehensive crash tests and safety ratings, while C-NCAP adapts similar principles to China's local driving conditions.

These programs encourage manufacturers to improve safety features and offer transparent ratings by demonstrating how vehicles perform in real-world scenarios.

3. Space

Vehicle space, more than anywhere, is an extremely important factor to Chinese consumers, ranking 3rd with 37.2% participants expressing this view.

Given the density of major cities in China, dwellings are relatively small and a household’s vehicle becomes an extension of the living space.

As such, interior and cargo spacing are extremely valued and has encouraged automakers to rethink the way NEVs are designed.

Source: Zeekr

For example, the Zeekr MIX features a flat floor, high wheelbase-to-length ratio and a capsule-styled exterior to maximize in-cabin space.

XPeng Motors designed the P7+ hatchback with the world’s thinnest LFP battery pack measuring 109 mm in order to maximize passenger headspace.

2. Branding

Branding, ranked 2nd with 37.2% of participants highlighting its importance, showcases how brand values and a founder’s reputation can strongly influence purchasing decisions.

Prior to the emergence of new energy vehicles, most Chinese consumers would dream to own one of the three German luxury brands, Audi, BMW, and Mercedes-Benz, coined as “BBA”.

However, vehicle brand alone ignores the influence of founders on branding.

In China, Elon Musk is often considered as the pioneer of electric vehicles with Tesla and an all around innovator through his other ventures, such as SpaceX and Neuralink.

His bold persona and narrative of revolutionizing industries often attract buyers, even though Tesla has not introduced many significant upgrades compared to Chinese domestic brands.

However, Musk’s actions, such as his acquisition of Twitter and controversial political ties, have also drawn criticism, deterring some consumers, particularly in markets like the U.S.

Despite this, his influence remains a defining factor in Tesla’s brand perception, demonstrating how deeply a founder’s image can shape consumer’s affinity with a brand.

In China, Xiaomi founder Lei Jun has also cultivated a strong brand identity through its success in the mobile phone and home appliance technology space that now extends to the company’s EV positioning.

The Xiaomi SU7, a pure electric sedan and the company’s first vehicle, has been a running success in China, selling over 20,000 vehicles a month in October 2024.

1. Appearance

Ranking at number 1 is vehicle design with 43.6% of respondents expressing the importance of the vehicle’s design language, colour, and external dimensions.

The design of vehicles are the strongest indicator for market appeal, especially in China. Recognizing this fact, many Chinese brands have recruited best-in-class Western designers.

Wolfgang Egger, one of the most prominent European designers to relocate to China, has been serving as BYD's Director of Design since 2017, after previously holding design roles at Audi, Lamborghini, Alfa Romeo, and Seat.

Source: BYD

Another industry titan is Kris Tomasson from the United States, who joined NIO in 2015 after working with BMW and Ford.

As NIO's Vice President of Design and head of the NIO style center in Munich, Tomasson has led the development of key vehicle designs, including the EP9 supercar and the Nio ET7, which is sold in several European countries.