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1、March 2023McKinsey China Auto Consumer Insights 2023The time of the smart electric vehicle.AuthorsThomas Fang,ShanghaiMingyu Guan,BeijingBill Peng,Hong KongTony Zhou,ShanghaiAbout the surveyFrom Q4 2022 to Q1 2023,we surveyed approximately 2,400 auto buyers in 19 major cities across China representi
2、ng a range of demographic attributes,such as age,income,type of cars already owned,and so on.The goal of the survey was to establish a better understanding of buyer behavior as well as overall attitudes toward automobiles,with the aim of developing insights that automotive OEMs could use when crafti
3、ng their strategies to meet changing consumer demand.Survey questions addressed major touchpoints along the customer journey,including product,channel preferences,pricing,brand loyalty,the car-use experience,and after-sales behavior;they also addressed consumers attitudes toward emerging trends in C
4、hinas auto market,such as electric-vehicle acceptance,smart vehicles,low-carbon cars,and more.Cover image:Blue Jean Images/Getty ImagesiMcKinsey China Auto Consumer Insights 2023Executive summaryFour major trendsautonomous driving,connectivity,electrification,and shared mobility(ACES)are transformin
5、g the automotive industry worldwide.Within China,these changes are having a dramatic impact on consumer preferences for vehicles.These changing preferences,in turn,could reshape the countrys automotive market over the next five to ten years.To gain more insight about the consumer perspectives in thi
6、s critical market,we conducted the McKinsey China Auto Consumer Insights 2023 survey.Six major insights emerged:1.Trading up continues to be popular,but some consumers are making more rational choices about their next car purchase.High-priced models continued to increase their market share because,a
7、s shown in our survey,more than half of Chinese consumers are interested in vehicle trade-ups.At the same time,an increasing number of consumers are making more rational choices because OEMs have introduced many cost-effective models with high-quality features,giving buyers more options with better
8、overall value.2.Multinational brands no longer command premium prices,and changes in the overall brand landscape are accelerating.Chinese consumers have long been willing to pay a premium for foreign brands,but this attitude is shifting as changes within Chinas brand landscape accelerate.The survey
9、also revealed that brand awareness differs for electric vehicles(EVs)and traditional internal-combustion-engine(ICE)vehicles.Four of the five most recognizable EV brands are Chinese,while the most recognizable ICE brands are still foreign brands.3.Customer loyalty to EVs is emerging,and focusing on
10、customer operations is essential for OEMs.EV customers are more inclined to consider vehicle performance,rather than regulatory incentives such as free license plates,when purchasing a vehicle.Also,EV owners are highly satisfied with the overall performance of their vehicles,which demonstrates great
11、 growth potential for EV penetration.OEMs that want to build a sustainable,long-term advantage in the Chinese market must also strengthen all aspects of their customer operations.4.OEMs must offer omnichannel operations and focus on improving the customer experience.Consumers have shown significant
12、enthusiasm for online car sales,but offline touchpoints remain indispensable.EV disruptors have achieved high customer satisfaction through omnichannel direct-to-consumer(DTC)models,but they still need to improve their after-sales services.5.Software monetization is reaching maturity,and OEMs must c
13、ontinue upgrading their business models.Consumers are enthusiastic about various smart-vehicle technologies,but their willingness to pay varies significantly by feature.In response,OEMs need to rapidly implement and upgrade targeted payment approaches for different features to optimize their busines
14、s models.6.The concept of low-carbon cars is emerging,and consumers have shown willingness to pay extra.Low-carbon cars can help reduce greenhouse gas(GHG)emissions during all phases of the vehicle life cycle,beginning with the procurement of raw materials for manufacturing and extending through day
15、-to-day operations.Consumers are increasingly aware of the concept of low-carbon cars and some customer segments,such as those who have high incomes and are environmentally conscious,show a greater willingness to pay for them.Together,these trends will help promote even greater technological advance
16、s and encourage the development of new business models.This report shows how automotive OEMs can take advantage of these shifts and build strategies that position them for success in the Chinese market.iiMcKinsey China Auto Consumer Insights 2023Trading up continues to be popular,but some consumers
17、are making more rational choices about their next car purchase BJI/Blue Jean Images/Getty Images1Key insights:Chinese consumers have shown a strong desire to trade up when purchasing a new car,which has caused the market share of mid-to high-priced vehicles to increase over the past few years Today,
18、this desire to trade up remains strong;at the same time,with the continuous introduction of higher-value models,which offer high-quality features at lower prices,there are significantly more value-driven shoppers than before1McKinsey China Auto Consumer Insights 2023For many years,Chinese consumers
19、have desired trading up when buying new cars,which has driven the market share of higher-priced segments After 2017,the Chinese auto market declined in size for three consecutive years.After 2020,however,the demand for new cars recovered from the lowest basepoint of previous decline,primarily becaus
20、e of tax incentives implemented in 2022(Exhibit 1).Along with the recovery,the market share of higher-priced segments also increased.In fact,the market share of cars priced at RMB 100K to 200K has increased from 45 percent in 2020 to 48 percent in 2022,and the market share of cars priced at more tha
21、n RMB 200K increased from 25 percent in 2020 to 28 percent in 2022.11 At the time of publication,RMB 1 is equivalent to$0.15.Exhibit 1Sales volume of passenger vehicles in China,million units Market share by price segments,1%Note:At the time of publication,RMB 1=$0.15.1Based on the starting manufact
22、urer suggested retail price(MSRP)of the respective models.Source:China New Car Insurance Registration Database;IHS MarkitThe Chinese passenger vehicle market has had a recovery in sales in recent years,and the RMB 100Kplus segment(approximately$14,660)is winning the market share.McKinsey&Company0510
23、0032005200720092001720192021CAGR 10.9%CAGR 33.7%CAGR 6.2%CAGR1.4%2020202454448303024 RMB 200KRMB 100K200K RMB 100K2McKinsey China Auto Consumer Insights 2023Our findings show that the desire to trade up when purchasing a new vehicle is the major driver for the increa
24、se in the market share of mid-to-high-priced cars.In fact,more than half(54 percent)of those who own a car in the price range of RMB 100K to 150K would consider a higher-priced model for their next purchase,and nearly half(47 percent)of car owners whose existing cars costs between RMB 150K to 200K c
25、laim they would increase their budget for their next purchase(Exhibit 2).Exhibit 2Budget for the next car vs price of car already owned,%of respondentsNote:At the time of publication,RMB 1=$0.15.Source:McKinsey China Auto Consumer Insights 2023Consumers continue to show a strong desire to trade up f
26、or their next car purchase.McKinsey&CompanyBudget for the next car,RMB thousandsPrice of car already owned,RMB thousands20212022Prefer to trade upStay in the same rangePrefer to pay lessHighest%group 400 40016%1%0%0%0%0%73%27%4%1%0%0%10%60%32%3%0%0%0%12%62%56%10%2%0%0%2%36%63%10%1%0%0%4%28%88%400 40
27、043%12%0%0%0%0%57%34%16%0%0%0%0%52%37%21%0%0%0%2%44%47%20%0%0%0%3%32%57%10%0%0%0%0%23%90%3McKinsey China Auto Consumer Insights 2023While maintaining the desire to trade up,consumers are making more rational choices Even though the desire to trade up is strong,the number of consumers who hold more r
28、ational consumption views has significantly increased compared with previous years(Exhibit 3).For example,12 percent of respondents whose existing cars costs between RMB 100K to 150K claim they would consider a lower price range for their next purchase,compared with only 1 percent in 2021.Of those r
29、espondents whose existing cars costs between RMB 150K and 200K,a slighter greater share(16 percent)state they would consider a lower price range when making their next purchase,compared with 4 percent in 2021.And with the introduction of cost-effective models with high-quality features,some consumer
30、s will maintain this cost consciousness instead of simply pursuing higher-priced models.Exhibit 30200300300400 400222Consumers who consider a lower price range for next purchase in relation to price of car already owned,%of respondents,RMB thousandsNote:At the time o
31、f publication,RMB 1=$0.15.Source:McKinsey China Auto Consumer Insights 2023The proportion of consumers considering a lower budget for their next purchase is growing.McKinsey&Company4McKinsey China Auto Consumer Insights 2023Multinational brands no longer command premium prices,and changes in the ove
32、rall brand landscape are accelerating ViewStock/Getty Images2Key insights:The dominance of traditional multinational brands is declining,and consumer recognition of EVs and Chinese brands is growing Brand importance for EV customers is still low when compared with customers of ICE vehicles.However,a
33、s EV technology matures over the long term,a trustworthy brand image will be crucial for the success of EV OEMs.To that end,OEMs must further strengthen their brand images to facilitate long-term development Despite the rapid proliferation of new brands,which is making purchase decisions more comple
34、x,consumers are still choosing vehicles within a short initial-consideration set(ICS).Brands with weak performance may find it increasingly difficult to maintain market share5McKinsey China Auto Consumer Insights 2023Brand awareness has changed drastically,and multinational brands are losing favor f
35、rom Chinese consumers In recent years,the Chinese auto market has been overwhelmed by the influx of brands launched by both EV disruptors and traditional OEMs.And while the number of new brands continues to expand,some underperforming brands are losing market share.In the past three years,15 new bra
36、nds joined the list of so-called major brands(those with a market share of more than 0.1 percent,roughly more than 20,000 new cars sold annually).Meanwhile,12 brands have lost market share and fallen to less than 0.1 percent(Exhibit 4).Exhibit 42019Brands phased outNew brands202233315Bran
37、ds with MS 2%Brands with MS 0.52.0%Brands with MS 0.1%and 0.1%and 0.1%and 0.5%in 2022Major brands in the Chinese auto market,1 number of brands1Includes only brands with an MS of more than 0.1%,which aggregately account for more than 98%of the total Chinese passenger-vehicle market.Source:China New
38、Car Insurance Registration DatabaseCompetition in the Chinese auto market is becoming more intense as new brands catch up and old brands are phased out.McKinsey&Company6McKinsey China Auto Consumer Insights 2023To better determine how Chinese consumers perceptions of vehicle brands change as new and
39、 old brands cycle through the market,we asked our survey respondents about brand awareness.In terms of consumer awareness of premium brands,traditional German brands still maintain the leading position(Exhibit 5).At the same time,a few new EV brands are rapidly topping the list of premium brands(com
40、pared with McKinsey China Auto Consumer Insights 2021).One American EV brand moved up ten spots and is now ranked seventh on the latest premium-brand list,and a Chinese EV disruptor moved up 17 spots and is now ranked ninth on the list.Exhibit 5GermanpremiumbrandAGermanpremiumbrandBGermanpremiumbran
41、dCGermanpremiumbrandDBritishpremiumbrandAItalianpremiumbrandAmericanelectric-vehicle(EV)disruptorBritishpremiumbrandBChineseEVdisruptorBritishpremiumbrandC676057462317111098EV brandsTraditionalpremiumbrands3EVdisruptors45675411ICE1 vehicle ownersBEV2 ownersTop ten brands viewed as premium brand amon
42、g consumers,%of respondentsViewed as premium brand,%of respondentsRecognition diference of BEV owners vs ICE owners,%1Internal-combustion engine.2Battery electric vehicle.3Includes three major German premium brands.4Includes one American EV disruptor and three Chinese EV disruptors.5%of respondents
43、is rounded up.Source:China New Car Insurance Registration Database;McKinsey China Auto Consumer Insights 2023Electric-vehicle owners are showing diverging perceptions of premium brands.McKinsey&Company70547McKinsey China Auto Consumer Insights 2023More notably,brand perception among EV owners is div
44、erging from that of ICE-vehicle owners.In terms of premium-brand recognition,EV disruptors receive 70 percent higher recognition from EV owners than from ICE-vehicle owners.In contrast,traditional premium brands receive 4 percent lower recognition from EV owners than from ICE-vehicle owners.When com
45、paring brand awareness of EVs with that of ICE vehicles,Chinese brands are much more recognized in the EV space than in the ICE space(Exhibit 6).In the EV space,four Chinese brands rank in the top five on the brand awareness list,but in the ICE space,Chinese brands fail to rank in the top five.Exhib
46、it 6AmericanEVdisruptorChinesetraditionalbrandChineseEVdisruptorAChineseEVdisruptorBChineseEVdisruptorC7465625421GermanpremiumbrandAGermanpremiumbrandBGermanmassbrandGermanpremiumbrandCJapanesemassbrand6362514924Chinese brandsTop fve most recognized electric-vehicle(EV)brands,%of respondentsTop fve
47、most recognized internal-combustion-engine(ICE)vehicle brands,%of respondentsSource:McKinsey China Auto Consumer Insights 2023Consumers brand perceptions of internal-combustion-engine vehicles and electric vehicles have diverged.McKinsey&Company8McKinsey China Auto Consumer Insights 2023Historically
48、,Chinese consumers have been willing to pay premium prices for multinational brands instead of Chinese brands.However,charging premiums for multinational brands has started to decline.Nearly half of our survey respondents say they were reluctant to pay a premium for a multinational brand,especially
49、those who own a lower-priced car(less than RMB 200K)or an EV.Owners of low-to medium-priced vehicles are less willing to pay a premium for multinational brands,which can also be observed from sales performance in the corresponding price range(Exhibit 7).In the price range of less than RMB 100K,multi
50、national brands only make up a quarter of the market,and in the next price range of RMB 100K to 200K,multinational brands still have the advantage,although they lost nearly 19 percentage points of their market share in the past two years.Multinational brands still dominate the price range of more th
51、an RMB 200K,and the decline of market share in the past two years is less than that of the RMB 100K to 200K price range.Exhibit 7Overall 2004362473720202021202229%27%25%71%73%75%20202021202279%69%60%21%31%40%20202021202296%90%82%4%10%18%Chinese brandsMNC brandsUnwillingness to pay premium prices for
52、 MNC brands over Chinese brands by price of the car owned,RMB thousands,%of respondentsSales mix by price range by starting manufacturer suggested retail price(MSRP),RMB thousandsNote:At the time of publication,RMB 1=$0.15.Source:China New Car Insurance Registration Database;McKinsey China Auto Cons
53、umer Insights 2023Nearly half of consumers are no longer willing to pay premium prices for MNC brands.McKinsey&Company 2009McKinsey China Auto Consumer Insights 2023EV owners are more reluctant to pay a premium for multinational brands than ICE vehicle owners(51 percent and 39 percent,respectively).
54、This is also consistent with the difference in the sales performance between the EV segment and the ICE segment:Chinese brands make up around 80 percent of the market share in the EV segment,which is much higher than in the ICE segment(Exhibit 8).Exhibit 8OverallEV1ICE24352022282419727681
55、2020202293229Chinese brandsMNC brandsUnwillingness to pay price premium for MNC brands over Chinese brands by type of powertrain,%of respondentsSales mix by type of powertrain,%EV1ICE21Electric vehicle.2Internal-combustion engine.Source:China New Car Insurance Registration Database;McKins
56、ey China Auto Consumer Insights 2023Electric-vehicle owners are more reluctant than internal-combustion-engine owners to pay a premium for MNC brands.McKinsey&Company10McKinsey China Auto Consumer Insights 2023The unwillingness of EV owners to pay premiums for multinational brands is also reflected
57、in the key buying factors of consumers for different types of vehicles.For ICE-vehicle owners,brand is the most important factor,but for EV owners,brand falls to fifth place in terms of priorities(Exhibit 9).Upon taking a closer look,however,there are similarities between customers of EVs and ICE ve
58、hicles.The ranking of some common factors(such as dynamic experience,fuel and maintenance costs,static experience,and after-sales quality)given by customers of both segments is the same after excluding brand and other factors specific for EV owners(such as range,charging needs,battery technology,and
59、 so on).This suggests that the importance of brand to EV customers may approach a level similar to that of ICE-vehicle customers as EV technologies maturefor example,when the EV-specific factors of different models converge in the years to come.Exhibit 9ICE customersEV customersOverallOwners of Chin
60、ese premium EV brands2Car brand that I trustDynamic experience(eg,steering,chassis)Fuel and maintenancecostStatic experience(eg,interior,space)After-sales qualityCrash safetyResidual valueSmartifcation(eg,advanced driving,connectivity)Retail experience877267595944393834Range and chargingtimeDynamic
61、experience(eg,steering,chassis)Fuel and maintenancecostAdvanced batterytechnologyCar brand that I trustStatic experience(eg,interior,space etc)Charging supportAfter-sales qualitySmartifcation(eg,advanced driving,connectivity)Crash safetyResidual valueRetail experience56484643423735342923201650474731
62、4646253646261022Other factorsTop four“other factors”BrandingEV-specifc needsx12341234Key buying factors(KBFs)of internal-combustion-engine(ICE)vehicles vs electric-vehicle(EV)customers,%of respondents11Because EV customers are ofered more options,%of respondents between ICE vs EV is not directly com
63、parable.2Owners of four leading Chinese premium EV disruptors.Source:McKinsey China Auto Consumer Insights 2023Electric-vehicle customers are more pragmatic and care less about brand,but as the technology matures,the situation might change.McKinsey&Company11McKinsey China Auto Consumer Insights 2023
64、It is crucial for OEMs to enter consumers initial-consideration set(ICS)to stay competitive The possibility of a gradual convergence of brand importance between ICE vehicles and EVs is also shown by the ICS of consumers(Exhibit 10).Essentially,when consumers set out to buy a car,they first establish
65、 a number of brands to consider and research before making the final decision.This field of choice has expanded in recent years,with the number of brands with a market share of more than 0.5 percent increasing from 32 in 2019 to 37 in 2022.Although the ICS of consumers includes only two or three bra
66、nds on average,there is a high possibility(about 80 percent)of final choices coming from the ICS,regardless of vehicle type.Facing such a complex brand landscape,its crucial for OEMs to come up with strategies that result in their brands being included in the ICS of consumers.Exhibit 0222
67、.72.52.8ICE-vehicle1ownersEV2 owners7779Number of brands in initial-consideration set(ICS)Final decisions within ICS,2022,%Note:2020 is not included because the survey was not conducted that year.1Internal-combustion engine.2Electric vehicle.Source:McKinsey China Auto Consumer Insights 2023Consumers
68、 tend to maintain a small initial-consideration set,and about 80 percent of fnal decisions come from that set.McKinsey&Company12McKinsey China Auto Consumer Insights 2023Customer loyalty to EVs is emerging,and focusing on customer operations is essential for OEMs nrqemi/Getty Images3Key insights:As
69、EV technologies mature,regulatory supportnamely,free special license plates for EVsis no longer a primary factor for consumers considering the purchase of an EV The smart EVs introduced by Chinese EV disruptors have won significant recognition from Chinese consumers Overall,EV owners are satisfied w
70、ith the performance of their vehicles across multiple dimensions,which will benefit the accelerating expansion of EV market share in the near future13McKinsey China Auto Consumer Insights 2023The market penetration rate of EVs and consumer acceptance are mutually reinforcing In the Chinese passenger
71、 vehicle market,the penetration rate of EVs has achieved a staggering increase in the past few years(Exhibit 11).Increasing from less than 5 percent in Q1 2020 to nearly 30 percent in Q4 2022,market penetration is rising rapidly across all city tiers.Meanwhile,based on McKinsey China Auto Consumer I
72、nsights 2023,consumer acceptance of EVsthe proportion of consumers who are willing to consider an EV for their next carhas also increased,rising from 55 percent in 2019 up to 68 percent in 2022(Exhibit 12).Exhibit 11Electric-vehicle penetration,%Source:China New Car Insurance Registration DatabaseEl
73、ectric-vehicle penetration is increasing rapidly in China across all city tiers.McKinsey&CompanyQ12020Q22020Q32020Q42020Q12021Q22021Q32021Q42021Q12022Q22022Q32022Q42022055405 quarters behind tier 18 quarters behind tier 1Tier 1 citiesNationwideTier 3 citiesTier 2 citiesTier 4 citiesExhibi
74、t 022556368453732Will consider EVs1Only consider ICE2 vehiclesType of vehicle considered for next car,%of respondentsNote:2020 is not included because the survey was not conducted that year.1Electric vehicles.2Internal-combustion engine.Source:McKinsey China Auto Consumer Insights 2023Con
75、sumers acceptance of electric vehicles is increasing continuously.McKinsey&Company14McKinsey China Auto Consumer Insights 2023With all this in mind,the rapid growth of EV sales is undoubtedly directly driven by increased consumer acceptance.Meanwhile,the growing prevalence of EVs will also reinforce
76、 consumer perceptions of EVs.Vehicle performance is now the key factor influencing EV customers purchase decisions,replacing the fact that it is easier to obtain a license plate for an EV When respondents answered questions related to the acceptance of EVsfor example,“Why are you considering buying
77、an EV?”factors such as“lower fuel cost,”“environmentally friendly,”and“smartification”were most frequently mentioned,ranking well above“easier to get a car plate”(Exhibit 13).This shows that EVs are winning over consumers with their performance advantages instead of relying solely on policy-based fa
78、ctors.In addition,the proportion of consumers who consider“My favorite brand only offers EV”an important factor is increasing,highlighting the attractiveness of several outstanding EV disruptors to consumers.Exhibit 13Lower fuel costEnvironmentallyfriendlySmartifcationLowermaintenance costLess engin
79、enoiseEasier to get alicense plateAttractiveappearanceStronger powerMy favorite brandonly ofers EVs656360565248403930Reasons for considering electric vehicles(EVs),%of respondentsPreference evolution,%of respondentsSource:McKinsey China Auto Consumer Insights 2023The growing acceptance of electric v
80、ehicles is triggered by the advantages in product performance.McKinsey&Company2044560200153015McKinsey China Auto Consumer Insights 2023EV disruptors are winning the affinities of consumers with advantages such as value for money,smart features,and EV-native platforms The succe
81、ss of EV disruptors is a notable phenomenon in Chinas EV market.In fact,the selling price of vehicles offered by EV disruptors have reached or even exceeded those of traditional premium brands.Despite this,they still achieved significantly higher sales volume than the latter in EV sales.Several fact
82、ors are affecting consumers favor toward EV disruptors instead of traditional premium brandsfor example,EV disruptors offer the advantages of value for money;smart features;and native,purpose-built platforms designed specifically for EVs,rather than being derived from existing ICE platforms(Exhibit
83、14).As demonstrated by the key buying factors outlined in the previous chapter,it is worth noting that the importance of smart features for premium EV customers stands out both in comparison with ICE-vehicle owners and when premium EV customers decide between Chinese disruptors and traditional brand
84、s.This also explains why Chinese premium EV disruptors outperform traditional premium brands by offering better smart features and can be seen as a clear signal for any players aspiring to outperform in the premium EV market.Exhibit 14Lower price with richerfeaturesBetterautonomous-drivingfunctionsB
85、etter smart cabinexperienceDeveloped based onnative EV platforminstead of existing ICE2platformAttractive appearanceConvenient after-salesservicesTransparent sellingprice72686349454436Chinesepremium EVdisruptors3Traditionalpremiumbrands4391113Top reasons for buying electric vehicles(EVs)from premium
86、 Chinese disruptors instead of traditional premium brands,%of respondents1Sales volume of premium EVs,thousand units,20221Respondents are owners of cars from four leading Chinese premium EV disruptors.2Internal-combustion engine.3Includes four leading Chinese premium EV disruptors.4Includes three ma
87、jor German premium brands.Source:China New Car Insurance Registration Database;McKinsey China Auto Consumer Insights 2023Electric-vehicle customers appreciate the high-tech features and innovative retail and after-sales service from disruptors.McKinsey&Company+247%Chinese premium EV disruptors3Tradi
88、tional premium brands416McKinsey China Auto Consumer Insights 2023EV owners have shown high loyalty to their EVs because of high satisfaction with the performance of their vehicles across multiple dimensions Generally speaking,EV owners are satisfied with the performance of their vehicles.In terms o
89、f cost,driving experience,and smart cabins,the satisfaction rates are close to 8.5 out of 10.0;for actual driving range,the dimension with the lowest score,EV owners still gave an average score of 7.8 out of 10.0(Exhibit 15).Exhibit 10Cost(includingnew-carprice andusagecost)Drivingexperie
90、nceSmartcabinVehiclequalityAutonomous-driving oradvanced-driver-assistancesystemsChargingexperienceActualdrivingrange8.58.58.38.27.97.97.8Extremely satisfedExtremely unsatisfedSatisfaction rate(1.010.0)by dimensions for electric-vehicle owners onlySource:McKinsey China Auto Consumer Insights 2023Ele
91、ctric-vehicle owners are satisfed with the performance of their existing vehicles across multiple dimensions.McKinsey&Company17McKinsey China Auto Consumer Insights 2023With such high satisfaction rates,it is not surprising that EV owners have demonstrated loyalty to their EVs(Exhibit 16).Based on o
92、ur survey,the vast majority of EV owners are unwilling to switch back to traditional ICE vehicles after owning an EV,whereas only 3 percent of battery electric vehicle(BEV)owners would not consider an EV for their next car.Meanwhile,EV owners are also happy to recommend purchasing an EV to their fam
93、ilies and friends(rated 8.2 out of 10.0).Considering the fact that the market penetration rate of new EVs has reached 30 percent,the praise and loyalty of EV owners will undoubtedly further promote EVs to expand their market share.To establish sustainable,long-term competitive advantages in the EV m
94、arket,OEMs must strengthen customer operations from all perspectives.In addition to product performance and car-use experience,business model innovation and customer experience optimization in the retail and service phases cannot be ignored.In this regard,EV disruptors have discovered novel,successf
95、ul pathways to increasing market share that other OEMs can learn from.Exhibit 16ICE3vehicleownersPHEV4ownersBEV5owners48123528897Only consider ICE1 vehiclesWill consider EVsLeast likelyExtremely likelyRespondents who will consider EVs for their next car purchase,1%of respondentsLikelihood
96、 of recommending EVs to others,2 rating by EV owners1Question:Will you consider electric vehicles(EVs)in your next car purchase?2Question:Would you recommend EVs to your friends?3Internal-combustion engine.4Plug-in hybrid electric vehicles.5Battery electric vehicles.Source:McKinsey China Auto Consum
97、er Insights 2023High satisfaction is encouraging electric-vehicle owners to stick with EVs in their next purchase and to recommend them to others.McKinsey&Company8.218McKinsey China Auto Consumer Insights 2023OEMs must offer omnichannel operations and focus on improving the customer experience4Key i
98、nsights:Auto consumers have shown strong interest in online sales channels,but a satisfying offline experience is still indispensable Direct-to-consumer(DTC)models have effectively improved consumers purchasing and car-use experiences.Thus,OEMs should accelerate their omnichannel development to ensu
99、re a consistent online and offline experience and focus on the full customer life cycle.On this point,EV disruptors have already made significant progress BJI/Blue Jean Images/Getty Images19McKinsey China Auto Consumer Insights 2023Consumers are showing strong interest in new retail models,including
100、 online salesWith an ICS established,consumers will start to contact brands points of sale.Regarding preferred sales channels,only about 30 percent of respondents are satisfied with existing conventional dealerships.Meanwhile,22 percent of respondents prefer showrooms in shopping malls,and 49 percen
101、t hope to switch to online sales(Exhibit 17).Exhibit 17Overall 48ICE1BEV229348505272322Satisfed with conventional dealership modelOnline purchaseShowrooms in shopping mallsPreferred channel to purchase a car,%of respondentsNote:At the time of publication,RMB 1=$0.15.1Internal-c
102、ombustion engine.2Battery electric vehicle.Source:McKinsey China Auto Consumer Insights 2023Only about 30 percent of consumers are satisfed with existing conventional dealerships,and 49 percent of consumers would prefer online sales.McKinsey&CompanyBy monthly household income,RMB thousandsBy type of
103、 car owned20McKinsey China Auto Consumer Insights 2023Offline touchpoints remain indispensable While consumers are increasingly focusing on online channels,the offline experience remains indispensable.Many EV disruptors now offer a new sales model:after a product is launched online,consumers can mak
104、e reservations and lock in their orders through an app.But even for fans of these pioneering brands,an offline test-drive is typically a prerequisite before an order is confirmed.In fact,83 percent of owners of EV disruptors took a test-drive,and 17 percent placed blind orders2(Exhibit 18).2 Refers
105、to when customers pay nonrefundable deposits without taking a test-drive.Exhibit 18Vertical websitesSales consultantsOEM ofcial websiteand appSocial media andvideo-sharing websites65404035Percentage of consumers who have placed a nonrefundable order with or without a test-drive,%of respondents1Key i
106、nformation sources to learn about vehicle details,%of respondents1Includes only consumers who placed a nonrefundable order or picked up the car for the most recent smart electric-vehicle models.Source:McKinsey China Auto Consumer Insights 2023Ofine touchpoints are still indispensable because more th
107、an 80 percent of consumers desire to test-drive a car before deciding to purchase.McKinsey&Company1783Without test-driveTest-drive before makingpurchase decision21McKinsey China Auto Consumer Insights 2023The DTC model with online and offline integration shows remarkable potential to improve the cus
108、tomer experienceRecently,the DTC model introduced by EV disruptors has become a new focus of the automotive industry.According to our survey,the DTC model is indeed effective.Within the presales,sales,and after-sales phases,customer satisfaction through DTC models is generally higher than that of tr
109、aditional ICE-vehicle OEMs.Presales phase.Leading OEMs adopting the DTC model are vigorously deploying online channels.While enhancing the richness of online information,they also provide consumers with a combined online and offline service model,such as organized online launch events for new cars,s
110、imultaneous activation of online reservation channels,new-car experience reports from various automotive media after new-car launches,and online appointments for test-drives.Through the DTC model,leading OEMs have established obvious advantages in a few key aspects,such as online information display
111、 and the test-drive experience.However,offline information display is still at parity with traditional OEMs and needs further investment and optimization(Exhibit 19).Exhibit 19Online information displayOfine information displayTest-driveAverage in presales3538504148386249ICE-vehicle2 ownersOwners of
112、 Chinese premium electric-vehicle disruptors3Net satisfaction across the consumer journey,1%1%of respondents giving 9 points and above,minus%of respondents giving 2 points or below;on a scale of 1 to 10,with 10 being most satisfed.2Internal-combustion engine.3Includes owners of four leading Chinese
113、premium EV disruptors.Source:McKinsey China Auto Consumer Insights 2023Through the direct-to-consumer model,electric-vehicle disruptors have established key advantages in presales.McKinsey&Company22McKinsey China Auto Consumer Insights 2023 Sales phase.Leading OEMs adopting the DTC model offer quote
114、s,financing solutions,and vehicle delivery to consumers in a comprehensive and transparent manner through dedicated apps,which greatly enhances the overall customer experience and has won broad recognition(Exhibit 20).Moreover,leading OEMs have optimized retail costs by setting up self-owned deliver
115、y centers,standardizing the specific delivery processes and service content,and improving the efficiency of vehicle delivery.Various ceremonies such as photo shoots and champagne toasts during the delivery process have also effectively enhanced customer satisfaction.Exhibit 20Price negotiation and c
116、onfrmationFinancing solutionsDeliveryAverage in sales4632424049404946ICE-vehicle2 ownersOwners of Chinese premium electric-vehicle disruptors3Net satisfaction across the consumer journey,1%1%of respondents giving 9 points and above,minus%of respondents giving 2 points or below;on a scale of 1 to 10,
117、with 10 being most satisfed.2Internal-combustion engine.3Includes owners of four leading Chinese premium EV disruptors.Source:McKinsey China Auto Consumer Insights 2023Electric-vehicle disruptors have won recognition through the sales journey,such as through one-stop delivery centers and transparenc
118、y in pricing.McKinsey&Company23McKinsey China Auto Consumer Insights 2023 After-sales phase.Leading OEMs adopting the DTC model have won high customer satisfaction with their online communities and customer care,both of which fully demonstrate the importance of operating with the full customer life
119、cycle in mindthat is,focusing on better customer experience not only before and during the sales phase but also during the after-sales period(Exhibit 21).Through connections between the OEM and the customer,feedback can be transmitted directly,thus allowing OEMs to understand customer needs more qui
120、ckly and make targeted improvements,such as using over-the-air(OTA)vehicle software upgrades.However,it is worth noting that because of the lack of offline after-sales service points,EV disruptors are still lagging traditional OEMs in terms of after-sales maintenance and repair services.But this doe
121、s not mean that the traditional service format via dealerships is the only solution to resolve after-sales issues;by providing door-to-door pickup and delivery services,centralized dispatching of work bays,and other emerging business models,EV disruptors can still improve their performance in the af
122、ter-sales phase.Based on the above results,the DTC model can effectively improve consumers overall purchasing and car-use experiences.It can also help OEMs capture customer needs more quickly and directly as well as make timely and effective adjustments to truly achieve customer-centric operations.E
123、xhibit 21Online communityCustomer care from OEMsCar maintenance and repairAverage in after-sales3234503840444443ICE-vehicle2 ownersOwners of Chinese premium electric-vehicle disruptors3Net satisfaction across the consumer journey,1%1%of respondents giving 9 points and above,minus%of respondents givi
124、ng 2 points or below;on a scale of 1 to 10,with 10 being most satisfed.2Internal-combustion engine.3Includes owners of four leading Chinese premium EV disruptors.Source:McKinsey China Auto Consumer Insights 2023Electric-vehicle disruptors online community and customer care have won consumer satisfac
125、tion in after-sales.McKinsey&Company24McKinsey China Auto Consumer Insights 2023Software monetization is reaching maturity,and OEMs must continue upgrading their business models5Key insights:Software monetization is an emerging opportunity for OEMs,but the willingness of consumers to pay for differe
126、nt features varies greatly There is a drastic reduction in the willingness of consumers to pay for connectivity functions compared with last year because consumers see these functions as commoditized Consumers show little interest in subscription models for conventional-function upgrades Autonomous
127、driving is expected to generate higher willingness to pay,and a suitable payment model may effectively stimulate consumer enthusiasm Accident responsibility allocation and trustworthy solution suppliers are top considerations for consumers when they consider activating autonomous-driving functions m
128、etamorworks/Getty Images25McKinsey China Auto Consumer Insights 2023There is a drastic reduction in the willingness of consumers to pay for connectivity functions compared with last year because consumers see these functions as commoditizedWith the popularity of combined preinstalled hardware and so
129、ftware subscriptions,the necessity and feasibility of OEMs monetizing software is increasing.Although software monetization might be a new opportunity in the OEM profit pool,the willingness of consumers to pay varies widely across features.Considering willingness to pay for connectivity functions as
130、 an example,the average amount of money consumers are willing to pay for specific features is significantly lower than last year(Exhibit 22).For example,the average amount of money that consumers are willing to pay for connected after-sales services is 38 percent lower than in 2021,and the average a
131、mount of money that consumers are willing to pay for advanced keys(which can control or summon cars)is 42 percent lower than in 2021.With these points in mind,we believe that through Chinas overall highly developed internet ecology,connectivity features that once seemed rare are becoming available t
132、o most consumers,which is ultimately decreasing consumers willingness to pay.Exhibit 22After-sales services(eg,on-board diagnostics,maintenance reservation)Voice recognitionAdvanced key(eg,control or summon)Smart parking system(eg,car park real-timereservation)Advanced navigationIn-car paymentSentry
133、 model(eg,camera surveillance)Facial recognition495663676873737619201415Note:Figures may not sum to 100%,because of rounding.At the time of publication,RMB 1=$0.15.1Excludes consumers who are unwilling to pay.Source:McKinsey China Auto Consumer Insights 2023There is a drastic r
134、eduction in consumers willingness to pay for connectivity functions because they see these as commoditized features.McKinsey&Company20228713MeaninglessMeaningfulMeaningfulness of connectivity,%of respondentsImportance,%of respondentsAverage willingness to pay,1 RMB1,6001,5001,7001,7001,4001,5001,600
135、1,4003842393222404333Change from 2021,%Important,unwilling to payImportant,willing to payUnimportant26McKinsey China Auto Consumer Insights 2023Consumers show little interest in subscription models for conventional-function upgrades The implementation and promotion of software subscriptions has rece
136、ntly been a hot topic.In terms of specific subscription content,some OEMs have launched subscriptions for conventional functions,such as heated seats and rear-wheel steering.According to our survey,less than 10 percent of respondents show interest in subscription models for these and other conventio
137、nal functions,although the high-income group shows slightly higher acceptance(Exhibit 23).Exhibit 23Seat heating,cooling,andventilationSpecial drivingmode(eg,fasteracceleration)Personalizedambient moodlightingRear-wheelsteeringSteering wheelheating6554410101088OverallMonthly household income RMB 48K
138、Subscription model1 acceptance by monthly household income,%of respondentsNote:At the time of publication,RMB 1=$0.15.1Pay subscription fee on monthly or yearly basis;may cancel anytime.Source:McKinsey China Auto Consumer Insights 2023Consumer acceptance of the subscription model for conventional ve
139、hicle functions is very low;high-income groups show slightly higher acceptance.McKinsey&Company27McKinsey China Auto Consumer Insights 2023Autonomous driving is expected to generate higher willingness to pay,and a suitable payment model may effectively stimulate consumer enthusiasmPaid autonomous dr
140、iving has also been a recent focus in the EV market.We categorized autonomous-driving functions into three use cases:autonomous parking,autonomous driving on highways and urban viaduct roads,and autonomous driving on city roads.According to our survey,consumers show strong interest in all three use
141、cases.Yet compared with more complex and potentially riskier use cases such as autonomous driving on city roads,relatively simpler use cases such as autonomous driving on highways and urban viaduct roads have attracted more interest(Exhibit 24).In terms of payment models,consumers have roughly equal
142、 interest in one-off payments and subscription models.By looking into specific subscription options,consumers prefer the payment option with higher flexibility,such as usage-based payment by mileage(Exhibit 25).Exhibit 24Highway or urbanviaduct roadsCity roadsAuto-parking756076254025I need itI dont
143、need itImportance of autonomous-driving functions,%of respondentsNote:Figures may not sum to 100%,because of rounding.Source:McKinsey China Auto Consumer Insights 2023Consumers have a high interest in autonomous driving.McKinsey&CompanyExhibit 25Payment fexibilityLowHigh5461921Usage-based payment(eg
144、,fee per 100 km)Monthly subscriptionYearly subscriptionOne-of optional autonomous-driving packagePreferred payment models,1%of respondents 1For highway or urban viaduct roads,city roads,and auto-parking.Source:McKinsey China Auto Consumer Insights 2023Among diferent autonomous-driving subscription m
145、odels,consumers interest grows as payment fexibility increases.McKinsey&Company28McKinsey China Auto Consumer Insights 2023Compared with less-flexible payment options(such as one-time payments),more-flexible subscription options(such as usage-based payment by mileage)can generate higher payments for
146、 more complicated use cases such as autonomous driving on city roads(Exhibit 26).Considering that autonomous driving on city roads undoubtedly requires higher R&D and material investment,the willingness of consumers to pay is crucial for OEMs to maintain a sustainable business case for autonomous dr
147、iving.Consumers increased willingness to pay for models with higher flexibility can be a reference for OEMs designing appropriate monetization plans.At the same time,although the technology and investment required for autonomous parking is relatively small,consumers show equal willingness to pay for
148、 it compared with other use cases,especially under one-off payments and yearly subscriptions.In light of this,OEMs could also consider prioritizing implementing autonomous-parking functions.Exhibit 26Highway or urbanviaduct roadsCity roadsAuto-parking0394100130Willingness to pa
149、y,1 price index21Includes only consumers who are willing to pay additional fees beyond the new-car price.2The use cases of highway or urban viaduct roads are used as the price index base point(100).Source:McKinsey China Auto Consumer Insights 2023Flexible subscription models could generate higher pa
150、yments for more complicated use cases.McKinsey&CompanyOne-of optional autonomous-driving packageSubscription fee per yearSubscription fee per monthSubscription fee per 100 kmN/A29McKinsey China Auto Consumer Insights 2023Accident responsibility allocation and trustworthy solution suppliers are top c
151、onsiderations for consumers when they consider activating autonomous driving functionsAs shown in Exhibit 27,our survey revealed that consumers top considerations when deciding whether to activate autonomous-driving functions are how legal responsibility would be allocated in traffic accidents(70 pe
152、rcent)and who the providers of the autonomous-driving features are(51 percent).Specific hardware functions and tech parameters are also important(50 percent),which partly explains why new models equipped with light detection and ranging(LiDAR)sensors and chips with high computing power could attract
153、 more attention from consumers.When asking about which types of autonomous-driving suppliers consumers trust more,most said they trust OEMs(66 percent)over independent tech suppliers(34 percent).Looking into specific types of OEMs,consumers prefer Chinese EV disruptors(41 percent),followed by tradit
154、ional multinational OEMs(33 percent).This implies that eliminating consumers unfamiliarity with independent tech suppliers will be a major challenge for OEMs that integrate independent technology-solution suppliers with their products.It also implies that consumer trust in the autonomous-driving cap
155、abilities of Chinese EV disruptors has once Exhibit 27Responsibilityallocation foraccidents2Autonomous-drivingsolution supplierHardware functionand specsPrice and paymentmethodMedia and newsreports7051504427Type of autonomous-driving solutionsuppliers3466100OEMOEMIndependent tech companyT
156、raditional Chinese OEMsTraditional MNC OEMsChinese EV3 disruptorsMNC EV disruptorsTop fve considerations for autonomous-driving function activation,1%of respondentsMost-trusted autonomous-driving solution suppliers,%of respondents1Includes only consumers who need autonomous-driving functions.2Autono
157、mous-driving suppliers will take responsibility for accidents caused by faults with the technology,especially when relevant laws are not enacted yet.3Electric vehicle.Source:McKinsey China Auto Consumer Insights 2023Accident responsibility allocation and trustworthy autonomous-driving solution suppl
158、iers are top considerations for consumers.McKinsey&Company30McKinsey China Auto Consumer Insights 2023again been validated,helping to explain why consumers prefer local EV disruptors over traditional multinational premium brands when purchasing smart EVs.Although consumer acceptance of paid autonomo
159、us-driving functions is certainly encouraging,it is also important to acknowledge that the performance of common advanced driver-assistance systems(ADAS),such as navigation-guided piloting,are not yet perfect.Such systems can certainly bring a better experience to drivers under the circumstance of c
160、lear lane lines and moderate traffic flow,but they are far from being completely reassuring and can even malfunction in some cases.This may help explain why some premium Chinese EV disruptors have introduced ADAS by bundling hardware costs into the total price of the new car and subsequently offerin
161、g software for free.Similar free-software strategies will inevitably influence other OEMs and alter the perceptions of consumers around software payment.In addition,considering that connectivity features are becoming increasingly common,the willingness of consumers to pay is significantly lower than
162、 last year.Whether similar phenomena will be replicated when it comes to autonomous driving still requires close attention.To maximize profitability,OEMs should iterate and optimize the relevant business models while striving for excellence in autonomous-driving technology.31McKinsey China Auto Cons
163、umer Insights 2023The concept of low-carbon cars is emerging,and consumers have shown willingness to pay extra6Key insights:Chinese consumers are beginning to build awareness of low-carbon cars and are willing to pay extra for them.Certain consumer groups are particularly enthusiastic maxsattana/Get
164、ty Images32McKinsey China Auto Consumer Insights 2023More than 70 percent of respondents are willing to pay extra for low-carbon carsDecarbonization is a major topic in the auto industry.To comply with increasingly bold emissions targets,the development of low-carbon cars(which aim to achieve carbon
165、 reduction by lowering GHG emissions from the full life cycle of a vehicle,from raw materials and assembly to daily operations)has been added to the agenda of many OEMs.Building low-carbon cars will inevitably bring additional costs,so the acceptance and willingness to pay of consumers is crucial to
166、 their success.According to our survey,70 percent of BEV owners and intenders expressed their willingness to pay for low-carbon cars,and consumers with higher household incomes have shown greater levels of acceptance.Among the high-income groups with a monthly household income of more than RMB 48K,8
167、5 percent of respondents expressed a willingness to pay for low-carbon cars,and more than 15 percent are willing to pay more than RMB 5K(Exhibit 28).Exhibit 28Overall 484587677730422615 RMB 10KRMB 5K10KRMB 2K5KRMB 1K2K RMB 10KRMB 5K10KRMB 2K5KRMB 1K2K RMB 1KUnwilling to pay mor
168、eRespondentdistribution8812EnvironmentalistsOther consumers0Consumers willingness to pay more for low-carbon cars,1 by extra amount in RMB thousands,%of respondents2Environmentalists,3%of respondentsNote:Figures may not sum to 100%,because of rounding.At the time of publication,RMB 1=$0.1
169、5.1Refers to cars that achieve decarbonization by lowering greenhouse gas emissions from the full life cycle of a vehicle,from raw materials and assembly to daily operations.2Includes only battery electric-vehicle(BEV)owners and consumers who are considering a BEV for their next car.3Environmentalis
170、ts are consumers who consider environmental protection as the top reason to buy an EV.Source:McKinsey China Auto Consumer Insights 2023Environmentalists have shown a higher willingness to pay for low-carbon cars than the average.McKinsey&Company34McKinsey China Auto Consumer Insights 2023Summary:Imp
171、lications for OEMs Based on our survey insights,OEMs may benefit from implementing a targeted business transformation that focuses on their responses to three rapidly evolving trends:1.The shift to electrification is irreversible.Electrification in the Chinese market is ongoing and permanent.OEMs th
172、at hesitate to accept this change may become significantly less competitive over the medium-to long-term.2.Brand strategies are evolving.For many years,Chinese consumers have been willing to pay premium prices for multinational brands.Today,however,multinational OEMs may need to adjust their pricing
173、 strategies as their brand shares decrease and Chinese consumers become increasingly reluctant to pay a premium for their vehicles.Traditional multinational OEMs may benefit most from accelerating the search for a new pricing“anchor”in the era of smart EVs.Meanwhile,Chinese OEMs should primarily foc
174、us on reinforcing traditional selling points,such as advanced technology options and an extensive range of features.They might also consider strategies to increase the emotional appeal of their brands while gradually narrowing the price gap with multinational brands.3.Omnichannel operations are more
175、 important.In the era of traditional ICE vehicles,OEMs paid more attention to near-term sales targets than long-term customer satisfaction,but this strategy may not deliver the same benefits as smart EVs gain market share.OEMs may phase out conventional distribution models for various reasons,includ
176、ing a lack of interest among younger consumers for traditional retail and service models and the success of EV disruptors with DTC models.As they evolve,OEMs must accelerate their omnichannel operations to ensure consistent online and offline experiences.They should also explore distinctive strategi
177、es to enhance customer satisfaction.In addition to these three trends,which are most likely to have an impact over the near term,our survey suggests that three accelerating shifts will have a clear impact in the medium-to-long term:1.Value creation over the full vehicle life cycle is becoming more c
178、ritical.In addition to traditional business areas,such as car sales,financing,and after-sales,OEMs urgently need new business models.Software subscriptions,DTC models,and other innovative solutions could create value if OEMs can quickly identify possible monetization opportunities,develop action pla
179、ns,and move to implementation.2.Acceptance of low-carbon cars is growing.As policy makers increasingly mandate decarbonization targets,OEMs are making the development of low-carbon cars a key strategic priority.Chinese consumers are gradually becoming more likely to consider such vehicles and are de
180、monstrating a higher willingness to pay for them,which creates favorable conditions for OEMs to develop low-carbon cars.3.Smart features are becoming major differentiators for EVs.Many OEMs have relied on key componentsthe engine,gearbox,and chassisto differentiate their ICE vehicles in the Chinese
181、market.But in the era of EVs,it is becoming more difficult to create differentiated mechanical specifications.When purchasing premium EVs,Chinese consumers are increasingly likely to make smart features,such as ADAS,connectivity,and voice control,a core consideration.OEMs must respond to this trend
182、by accelerating the launch and update of smart functions,either independently or through codevelopment with technology companies.35McKinsey China Auto Consumer Insights 2023Based on the above three major trends and three accelerating shifts,we believe the following four suggestions may help all OEMs
183、 that aspire to win in the Chinese automotive market:1.Reshaping and repositioning the brand.OEMs now have multiple brand offerings and product choices for Chinese consumers,and it is becoming increasingly difficult to stand out in this crowded market.To attract consumer attention and develop their
184、brand images,OEMs should strive for differentiationfor example,by offering EVs with smart features and a low carbon footprint.They could also distinguish themselves by improving the overall customer experience.2.Balancing investments and returns for EVs and smart features.EV manufacturers cannot aff
185、ord to lose money over the long term.To enhance profitability,they should explore multiple levers,including those related to design-to-cost,design-to-value,and agile R&D.They could also identify core control points on tech stacks and build relevant capabilities.Such actions are critical now because
186、only profitable companies will be able to make sustainable,long-term investments in the smart-EV field.3.Developing omnichannel operations that integrate online and offline services.Many OEMs want to implement omnichannel operations and integrate their online and offline offerings.Accomplishing this
187、 goal will require drastic changes to all aspects of their organizations,including the overall vision,corporate culture,organizational structure,KPIs,and daily operations.OEMs should also develop tailored mechanisms that consider their unique needs and capabilities,rather than simply imitating other
188、s.4.Pursuing new business models.In the near term,OEMs can explore new business models by collaborating with other leading companies along the value chain.Over the longer term,they must build their internal capabilities and establish control over their own business models.The age of ICE vehicles in
189、China is fading,and the era of smart EVs has arrived.As consumer mindsets change and new technologies advance,many of the so-called golden rules are being subverted and reshaped.Facing such drastic changes,some OEMs have already left the market,and others may follow.Simultaneously,new players will e
190、merge,potentially increasing competition.The companies most likely to succeed are those that are willing to fully transform their products,brands,operations,organizational structures,and more.Thomas Fang is a partner in McKinseys Shanghai office,where Tony Zhou is an associate partner;Mingyu Guan is
191、 a partner in the Beijing office;and Bill Peng is a partner in the Hong Kong office.The authors wish to thank Daniel Birke,Helen Gao,Ruiming Li,Alexander Will,Ting Wu,Haoran Zhai,Cherie Zhang,and Allen Zhuang for their contributions to this report.36McKinsey China Auto Consumer Insights 2023McKinsey&CompanyApril 2023Copyright McKinsey&Companywww.McK McKinsey McKinsey McKinsey