Majority of U.S. car buyers open to Chinese vehicles as affordability pressures mount

U.S. consumers are increasingly open to Chinese vehicles as affordability weighs more heavily on car-purchasing decisions—and as dealers grapple with other shifting market dynamics, according to a Dave Cantin Group report.

The details: More than half of potential car buyers would consider a Chinese-made vehicle, with that number increasing significantly among younger consumers, as affordability becomes a bigger factor in purchase decisions and hybrids gain more traction, found the automotive retail M&A advisory firm.

The DCG report reveals that 77% of consumers under age 35 would consider purchasing a Chinese car, compared with 59% of those ages 35–54 and 36% of consumers 55 and older.
Even more revealing, nearly 30% of those open to a China-made vehicle would consider one priced at $45,000 or more.
In China, more than 200 battery-powered models, including hybrids, sell for the equivalent of less than $25,000.

DCG’s findings come as federal and industry opposition to Chinese-made vehicles entering the U.S. continues to gain traction, with several legacy automakers navigating their affiliations with China to continue selling vehicles in the market.

What they’re saying: “The industry may be underestimating the pressure the U.S. government will be under to make vehicles more affordable,” Dave Cantin Group President Brian Gordon said. “Consumer willingness to purchase China-made vehicles could combine with persistent affordability challenges to entice politicians into changing their stance on a U.S. entry.”

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Why it matters: Growing consumer openness to Chinese vehicles underscores how affordability is reshaping purchasing priorities, putting additional pressure on dealers and automakers to offer competitively priced products as buyers become increasingly willing to consider alternatives outside traditional brands.

Digging deeper: The rising cost of vehicles in the U.S. represents only one aspect of the shifting market dynamics dealers are now grappling with at the retail level, according to the DCG report.

EV sales continue to slow, with one GM dealer reporting sales fell from a couple hundred vehicles to roughly a dozen after federal incentives expired, as monthly lease payments jumped from about $240 to $800.
Mainstream vehicle quality has reached rough parity across many brands, shifting competition increasingly toward product appeal and price rather than historical perceptions of reliability.
The DCG report also highlights AI’s growing role in car buying: 59% of consumers rate its importance to purchase decisions a six or seven on a seven-point scale, while more than half of consumers under 55 have used or plan to use AI for vehicle research.

Between the lines: Amid the changing market dynamics, dealership consolidation is expected to accelerate, with groups taking a more strategic approach to mergers and acquisitions.

64% of dealers surveyed expect M&A activity to increase over the next 12 months, while only 12% expect it to decline, according to the DCG report.
More dealership groups are focused on acquiring desirable franchises, selling weaker assets, diversifying brand exposure, and pursuing off-market dealerships that fit the portfolios they’re building.

Bottom line: The DCG findings point to an increasingly complex retail environment where affordability, changing brand perceptions, AI adoption, and shifting EV demand are reshaping consumer behavior, while dealers respond by becoming more strategic about the brands and stores they want in their portfolios.

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