The automotive market is becoming increasingly competitive. Car companies are strengthening their in-house development of core software and hardware, leading to a steady fall in the price of chips and smart driving features. This has reduced car manufacturing costs and further boosted the price competitiveness of smart electric vehicles. There have been few changes in daily driving scenarios and the frequency of car usage compared to last year, with 70% of surveyed car owners commuting to work by car every week. At the same time, the flexibility offered by self-driving tours allows car owners to travel on their own schedule. Car owners in lower-tier cities drop off/pick up family members around more often every week. Due to relatively low population density and closer community ties in these cities, these drivers are more likely to be involved in family members’ daily activities, making it worth expanding family car usage scenarios for urban households.
Among consumers who have purchased a car within the past three years, those who did so in the past year show a higher usage rate of assisted driving functions, especially safety-related functions such as automatic emergency braking. However, although assisted driving functions have somewhat optimised the driving experience, they still do not adequately resolve the issues which drivers face in congestion, parking and other specific scenarios, as well as problems with the range and compatibility of in-car functions. Working out how to leverage AI to optimise the smart cabin and driving experience in the era of intelligence remains a challenge for car brands.
In-car and multi-device connectivity has become a trend, with car owners increasingly demanding a seamless integrated smart lifestyle. They expect interconnection to enable information sharing and function coordination between devices, thereby enhancing convenience, comfort and safety. Meanwhile, diverse functions of official brand apps are also providing new value for car owners, although only 30% of surveyed car owners have downloaded them. There are still shortcomings in user experience, but as improvements are made to the intuitiveness and range of functions available, the usage rate of brand apps among car owners is likely to increase.
Additionally, car owners have certain expectations for the future development of cars. For example, mobile charging stations and wireless charging technology can provide more flexible and convenient charging solutions. Higher-level autonomous driving technology will enhance driving safety and convenience. Finally, the creation of unified charging interfaces and shared charging resources will break down barriers between brands, leveraging resource sharing to make new energy vehicle (NEV) charging more convenient and economical.
This report looks at the following areas:
- Owner profiles and car attributes
- Changes in daily driving occasions and driving frequency by energy type
- Utilisation of and satisfaction with assisted driving functions
- Car usage issues caused by external factors
- Issues caused by in-car operating systems
- Reach and interest in brand official app content
- Car owners’ expectations for the development of future automotive technologies and services
AI is fuelling the optimisation of intelligent driving and smart cabins. Consumers no longer view cars as simply a means of transport, but expect a mobile living space capable of offering intelligent interactions, personalised services and safety assurance.
Keiyou Wang, Director, China Insights
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Executive summary
- Key issues covered in this Report
- Overview
- The market
- Market factors
- Marketing activities
- New product trends
- The consumer
- There is still a market for high-end electric cars, while the price of mid-range BEVs has dropped significantly
- Graph 1: price, by energy type, 2024
- Graph 2: price, by energy type, 2023
- 70% of car owners commute by car, and nearly 20% work as ride-hailing drivers in their spare time
- Safety-related driver assistance features have reached a penetration rate of 60%
- Although high-end cars boast top configurations, owner concerns have not lessened
- Graph 3: car usage issues caused by external factors, 2024
- Limited functionality and compatibility of in-car systems may cause greater dissatisfaction among owners of high-end vehicles
- Around 60% of car owners who have downloaded official brand apps are interested in vehicle diagnostics and remote control features
- Graph 4: reach of and interest in official brand app content, 2024
- Graph 5: interest in brand official app content, 2024
- PHEV owners have greater expectations for the future of automotive development
- Issues and insights
- What we think
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The market
- Market factors
- Intelligent driving becomes standard as large AI models support vehicle-road-cloud integration
- In-car and multi-device connectivity becomes a trend
- Demand for family cars supports trading up in the car market, as the buzz continues around high-end MPVs
- Range anxiety-free hybrid models become the main growth driver for NEVs
- Marketing activities
- Combine the purchase experience with healthy living scenarios to resonate with young users
- Integrate art and technology to showcase brands’ unique appeal
- Nostalgia marketing blends the classic with the modern to demonstrate brands’ traditional cultural heritage
- Document the lives of ordinary people to establish an emotional connection
- New product trends
- Smart headlights enhance interactivity and fun
- Digital cabin screens eliminate blind spots and enhance road safety
- Smart technology makes parking easier
- Combine automotive technology with art to create unique visual effects
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The consumer
- Owner profiles and car attributes
- The market for high-end electric cars is going strong, while the price of mid-range BEVs has dropped significantly
- Graph 6: price, by energy type, 2024
- Graph 7: price, by energy type, 2023
- Cost advantages drive BEV purchases among low-income car owners in Tier 1 cities
- Graph 8: energy type, by city tier and monthly household income, 2024
- The effect of price reduction strategies is evident among 18-29-year-old car owners who purchased a BEV in the last year
- Graph 9: energy type, by ownership and age, 2024
- Daily driving occasions
- 70% of drivers commute to work by car and nearly 20% are part-time ride-hailing drivers
- Graph 10: daily driving occasions, 2024
- Car owners in lower-tier cities pick up/drop off family members more often, while there is expansion potential in usage scenarios for urban families
- Graph 11: daily driving occasions, by city tier, 2024
- NEV owners with children are highly enthusiastic about self-driving tours, showing strong demand for intelligent road trips
- Graph 12: daily driving occasions – short-haul self-drive trips, by energy type, 2024
- Usage rate and satisfaction levels for driver assistance features
- Driver assistance safety features such as lane departure warnings, blind spot monitoring and emergency braking have a penetration rate of over 50%
- Graph 13: assisted driving function utilisation and satisfaction, 2024
- Utilisation of automatic emergency braking is higher among consumers who purchased a car in the past year
- Graph 14: utilisation of assisted driving functions, by energy type and ownership, 2024
- Satisfaction with PHEV assisted driving functions needs improvement
- Graph 15: satisfaction levels (a) for assisted driving functions, by energy type of vehicles priced at RMB200,000 or above, 2024
- Car usage issues caused by external factors
- Although high-end cars boast top configurations, owners actually find them more difficult to use
- Graph 16: car usage issues caused by external factors, 2024
- BEV drivers experience significantly lower levels of fatigue than PHEV or petrol car owners
- Graph 17: car usage issues caused by external factors, 2024
- Automatic parking functions alleviate difficulties with parking
- Graph 18: car usage issues caused by external factors – difficulty parking, by automatic parking function usage, 2024
- Issues with in-vehicle operating systems
- Limited functionality and compatibility of in-car systems may cause greater dissatisfaction among owners of high-end vehicles
- Graph 19: issues with in-vehicle operating systems, 2024
- Younger car owners have greater expectations for an intuitive and user-friendly cabin experience
- Graph 20: issues with in-vehicle operating systems, by age, 2024
- Reach and engagement with content on official brand apps
- Around 60% of car owners who have downloaded official brand apps are interested in vehicle diagnostics and remote control features
- Graph 21: reach of and interest in official brand app content, 2024
- Graph 22: download status of the official brand app, by age, 2024
- Community sharing is more appealing to car owners in their 40s
- Graph 23: interest in official brand app content, by age, 2024
- Car owners in lower-tier cities show greater interest in lifestyle service guides
- Graph 24: interest in official brand app content, by city tier, 2024
- Expectations for automotive development
- PHEV owners have greater expectations for the future of automotive development
- Graph 25: expectations for automotive development, by energy type, 2024
- Car owners in their 30s have higher expectations for advanced autonomous driving, while voice and gesture recognition appeal more to those in their 50s
- Graph 26: expectations for automotive development, by age, 2024
- Car owners in lower-tier cities are more concerned about unified sharing of charging ports
- Graph 27: expectations for automotive development, by city tier, 2024
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Issues and insights
- Transforming the cabin into a versatile space
- AI-powered smart driving simplifies road conditions and makes driving easier
- Smart off-roading invites the user to go ‘wild’
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Appendix – methodology and abbreviations
- Methodology
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