BYD Leads in Chinese EV Market

According to Bernstein’s 2024 proprietary survey of Chinese car buyers, BYD (SZ:002594) has extended its lead as the most recognized electric vehicle (EV) brand in China.

Survey Insights

The survey, which gauges consumer sentiment, car-buying intentions, and brand preferences, revealed that:
– BYD was the top brand in unaided recall among respondents.
– Tesla (NASDAQ:TSLA) and Volkswagen (ETR:VOWG_p) ranked second and third, respectively.

Bernstein’s survey highlights that BYD’s brand awareness surged by five percentage points compared to last year. Bernstein stated:

“This supports our bullish view on BYD, and points to potential for market share gain in the domestic market.”

In contrast, Volkswagen experienced a 3-point drop in brand awareness, indicating potential challenges for the German automaker in the competitive Chinese market.

Consumer Demographics

The survey was conducted among 1,548 Chinese consumers from various regions, income levels, and age groups. Other key findings include:
– BYD maintained its dominance, while newer entrants like Xiaomi (OTC:XIACF) made a strong impression.
– Despite being a recent player in the auto industry, Xiaomi ranked ahead of traditional premium brands like Mercedes.
– Huawei’s AITO lagged behind, coming four places after Li Auto (NASDAQ:LI).

Growing Loyalty for Domestic Brands

Bernstein’s findings suggest that domestic EV brands are seeing increasing loyalty, with 68% of respondents indicating a willingness to repurchase from the same brand—a significant jump from 51% in the previous year.

This trend reflects the rising strength of Chinese EV makers at the expense of Japanese and German brands, which continue to see declines in brand loyalty.

As Bernstein notes, the expanding mindshare of Chinese EV brands, along with their rising brand loyalty, underscores their increasing influence in China’s rapidly evolving auto market.