National preference: a sliding scale

DOMESTIC PREFERENCE PREVAILS IN MAJOR CAR-MAKING NATIONS

Is this down to the ambiguity surrounding what constitutes a vehicle’s nationality? Whatever the cause, automotive nationalism varies dramatically when it comes to choosing the brand of one’s next car. While on average only 1 in 5 respondents would choose to buy a car from a domestic brand, the divergence in viewpoints is stark. On this point, Japan shows an overwhelming preference for buying Japanese first and foremost. China and the US align with Japan, albeit more moderately, with a clear majority favouring domestic brands. Germany follows suit, as does France to a lesser extent. Conversely, “brandless” markets such as the Netherlands, Belgium and Portugal logically pay little heed to this criterion. Meanwhile, the sharp drop in Italian car production may account for the modest score recorded there.

NATIONAL CHAMPIONS OFTEN HOLD SWAY

In Germany and Japan, the two countries where automotive nationalism is most pronounced, the top three sales slots are held entirely by domestic brands. In France, the picture is identical if Dacia, a subsidiary of Renault, is counted as a domestic brand.

LOCAL ORIGIN STRUGGLES TO WITHSTAND FOREIGN COMPETITION…

National preference falters when faced with attractive foreign alternatives. On average, only 3 in 10 drivers have decided against buying a foreign-branded car they liked in order to opt for a local or regional vehicle instead. On this measure, the US, followed by China, demonstrates the strongest resistance (43%). The exact opposite is true, once again, in Italy, where automotive patriotism appears to have run its course. One must look to major cities and younger, predominantly male demographics to find the strongest expressions of brand patriotism.

…YET DRIVERS REMAIN WILLING TO PAY A SMALL PREMIUM FOR A DOMESTIC CAR

Even so, consumers show a modest degree of financial goodwill when purchasing a car from their own country or a neighbouring state. Fully 76% state they are prepared to pay more, with Chinese, American, Turkish and Polish buyers leading the way. Paying more, but only up to a point: typically around 5%. Younger drivers reinforce their support for local brands by showing significantly greater generosity. Indeed, 9 in 10 young buyers would accept a price premium, with 4 in 10 estimating this mark-up at between 5% and 10%.

CHOOSING LOCAL: A MATTER OF TASTE

If drivers are indeed willing to pay extra for a local car, what actually motivates them? While no single factor emerges as the dominant driver from the list of options, 1 in 5 motorists ranks sheer appeal first. Behind this hedonistic, personal criterion—championed most strongly by Portuguese, British and German drivers— economic logic and supporting domestic industry rank second, with American and French consumers placing the greatest weight on this argument. It is also worth noting the desire for a reliable local service network, a topic explored in greater detail in Part 4.