Car buyers are demanding lower prices and better tech. Automakers must deliver both

Global automakers face an increasingly demanding customer: one who wants both competitive prices and better technology, according to Bain & Company.

Tech and features were a leading purchase consideration for 58% of Chinese consumers, ranking ahead of price, the consultancy's latest Global Automotive Consumer Survey found. In the U.S. and Europe, price remained the top consideration, cited by 68% and 62%, respectively.

However, that does not mean Chinese buyers have stopped caring about affordability.

Intense domestic competition has made low prices an expectation in China, pushing carmakers to stand out through technology and features, Bain executives told CNBC.

Stricker expects Western markets to follow, with competitive pricing becoming a baseline and technology playing a bigger role in purchasing decisions. Moreover, growing competition from Chinese manufacturers is expected to intensify pricing pressure in Europe, he added.

China’s vehicle exports to Italy more than doubled to 209,258 units in January-August, while U.K. shipments rose about 86% to 365,672, according to customs figures cited by the China Passenger Car Association.

Meanwhile, weakening brand loyalty threatens an advantage established manufacturers have relied on for decades. "European manufacturers [have] basically based their business model for decades on brand loyalty," Stricker said, but that allegiance is fading.

More than a third of customers in Western markets are open to new brands entering the market, Bain's survey found. Buyers most interested in autonomous-driving technology are also more willing to switch manufacturers for better functionality.

Helen Liu, Asia automotive head and partner at Bain, said that younger U.S. and European consumers are closer to Chinese buyers in their openness to technology, adding that Western manufacturers need to "up their game" to retain those customers.

But monetizing those features could prove difficult.

While Stricker said that mass-market buyers often expected advanced driving technology to be included rather than carry a substantial premium, Liu added that those demands leave Chinese and Western manufacturers "climbing different mountains."

Emerging Chinese players must build their brand standing, while Western incumbents must strengthen their technology offerings. All players must keep prices competitive.

Manufacturers that can close their respective gaps without pricing themselves out of buyers' consideration stand to gain the most as the industry consolidates, according to Bain.

– CNBC's Evelyn Cheng contributed to this story.