Korean Media: Young Consumers Are Unimpressed, Western Auto Brands' Position in China is Shaking!

On May 26, South Korean media outlet *Herald Economy* published an article stating that American and European vehicle brands are increasingly seen by young Chinese consumers as "brands from their parents' generation," causing them to rapidly lose market share in the domestic market.

According to InsideEVs, a media outlet specializing in electric vehicles, Chinese EV consumers are shifting their mindset—placing greater emphasis on technology and product quality rather than the historical prestige of traditional brands like BMW or Buick.

As competition shifts from price to features, software, and electric vehicle technologies, Western automakers will find it difficult to rebound based solely on their existing brand value.

Qi Zekai, CEO of Volkswagen China, said: “Young consumers view Western brands as ‘their parents’ generation’s brands.’” He pointed out that new car buyers now prioritize fresh technological experiences over the traditional values symbolized by badges such as the BMW emblem or Buick logo. However, established automotive manufacturers have failed to respond promptly and adequately to this shift.

In the past, German cars were regarded in China’s market as symbols of luxury. It was widely believed that even at high prices, German vehicles represented exceptional quality and craftsmanship. However, in recent years, Chinese automakers have rapidly evolved through their transition to electric vehicles and competition in software, altering this landscape.

In particular, domestic companies such as BYD, Geely, and Xiaomi are swiftly capturing consumers who once favored imported vehicles. Buick’s sales in China have declined by more than half since 2017, while Volkswagen’s sales dropped by approximately 27% during the same period. Currently, over a quarter of new car sales in China are pure electric vehicles, signaling a fundamental change in market dynamics—relying solely on internal combustion engine strategies is no longer effective.

Original article: toutiao.com/article/1866253428992011/

Disclaimer: The views expressed in this article are those of the author alone.