As the first Chinese-branded electric and plug-in hybrid vehicles enter the Canadian market, a new survey from AutoPacific reveals that over half of Canadian car buyers would consider buying a Chinese-made car. After the Canadian government reduced import tariffs from 100% to 6.1%, several major Chinese car manufacturers have begun setting up dealerships and shipping vehicles for certification, paving the way for sales to start later this year.
Chery has already shipped an initial batch of EVs and PHEVs to Canada, with thousands more scheduled for delivery in the coming months. The efforts of these companies are well worth it, as Canadians are familiar with what Chinese cars offer and are ready to spend their money on them.
View Price on AmazonAccording to AutoPacific's survey, 67% of Canadian new vehicle shoppers are very or somewhat familiar with Chinese auto brands, and 55% would consider buying one if available in Canada. A similar survey conducted last year in the United States found that 65% of respondents were very or somewhat familiar with Chinese auto brands, and 51% would consider buying a Chinese-branded car.
Price, quality, and value for money were cited as the biggest reasons for considering purchasing a car made by a Chinese brand. However, none of the marques currently setting up shop have disclosed the pricing of their cars. While luxury EVs in China are often priced very low when converted to local currencies, this is largely due to the weak Chinese Yuan relative to the US and Canadian dollars.
It's highly unlikely that Canadian car buyers will have access to $30,000 ultra-luxury SUVs that undercut local competition by tens of thousands of dollars. Nevertheless, consumers clearly see value as a significant reason for trying a Chinese car.
"While Chinese EVs are effectively banned in the US due to trade barriers, Canadian consumers are about to gain access to them starting later this year," said Ed Kim, president and chief analyst at AutoPacific. "As Canada is a North American market with many cultural similarities to the US, we saw an opportunity to use Canadian consumers as a proxy for US consumers when Chinese EVs eventually become available to them."
When it comes to the type of powertrain for their next car purchase, Canadians are 6 percentage points more likely to consider an EV for their next vehicle compared to American respondents, and 5 percentage points more likely to intend to buy one. Canadian consumers are more drawn to the pragmatic aspects of Chinese EVs than US buyers, with exterior design, advanced technology, and luxury features ranking lower in their preferences.
Source: insideevs.com
