A new survey shows that American automakers such as General Motors (GM) , Ford (F) and Tesla (TSLA) could potentially be under threat from the increasing awareness of Chinese EV brands like BYD (BYDDY) , NIO (NIO) and Xpeng (XPEV) , largely in part due to increased consumer awareness thanks to social media platforms like TikTok.
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According to the latest International Electric Vehicle Consumer-Sentiment Survey conducted by AlixPartners, most potential buyers are aware of Chinese EV makers, particularly those that are much younger.
Out of 9,000 buyers that were surveyed, 58% of buyers in the U.S. who said that they were very or moderately likely to adopt the plug for their next vehicle were aware of Chinese EV brands like BYD. Additionally, the percentage jumped to 76% amongst those aged 18-25 and 73% amongst those aged 25 to 35.
AlixPartners' automotive and industrial global co-leader Mark Wakefield said that figures like these are surprising, since Chinese brands like BYD have no brand presence in the U.S. market.
"It's pretty clear that even with very little market share, the awareness is really growing," Wakefield told Automotive News. He also noted that the awareness and brand recognition for these brands can "bode either well if you're a Chinese EV company exporting or ominously if you are a traditional automaker."
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These "buyers of tomorrow," as per Wakefield, are not only attracted to the competitive price of Chinese cars, but what Chinese vehicles can offer said buyers.
According to AlixPartners, the Chinese automakers use their "head start on EV manufacturing" to stuff their cars with attractive features like "cutting-edge infotainment and advanced safety features," of which are showcased on social media platforms like TikTok.
Tesla's Advertising Blunder
Tesla YouTube Ad + link to website for a test drive. pic.twitter.com/qp9WAfACTL
— Trevor Scott 𝕏 (@Space_Taz) November 15, 2023
While Chinese EV brands get virtually free advertising to American consumers on TikTok, Tesla is axing a large portion of its marketing and growth team after just four months of its launch as part of its massive series of layoffs.
The sudden move comes after CEO Elon Musk promised investors in May 2023 that Tesla would “try out a little advertising and see how it goes," which became reality in the form of the aforementioned marketing and growth team. However, what this team put out seems to have led Musk to become an nonbeliever again.
Tesla fan @niccruzpatane wrote on a post on X (formerly known as Twitter) that the automaker "could’ve done a better job with their ads," noting "they were all WAY too generic and just contained recycled b-roll footage."
"So many great aspects to owning a Tesla, they should be highlighted more."
In response, Musk replied "Exactly. The ads were far too generic – could’ve been any car."
Exactly. The ads were far too generic – could’ve been any car.
— Elon Musk (@elonmusk) April 22, 2024
More Business of EVs:
- A full list of EVs and hybrids that qualify for federal tax credits
- Here’s why EV experts are flaming Joe Biden’s car policy
- The EV industry is facing an unusual new problem
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