Chinese SUV brands are in hot pursuit of their international rivals, according to a new industry report that suggests indigenous vehicles offer better value for money and are more in line with the needs of young Chinese drivers.

The latest Chinese Automobiles 2018 Report by London-based brand valuation consultancy Brand Finance reveals the gap between international SUV brands and those from China is closing, with improved technology raising the price of Chinese models, and a significant increase in competition prompting discounts by joint-venture companies.

Although most Chinese brands are still in the middle-to-low end of the market, brands including WEY, which is owned by Great Wall, and Lynk& Co, which is owned by Geely, are targeting a slightly higher-income segment by using better technology and more differentiated and premium marketing.

WEY sold more than 7 percent of China's mid-to-premium SUVs between January and August. The segment comprises vehicles selling for between 150,000 and 200,000 yuan ($21,700 and $28,900). Lynk& Co sold more than 4 percent of vehicles in that segment.

The study shows a growing number of Chinese customers, particularly young drivers, who would in the past have traded up to a more expensive Western model, are increasingly considering Chinese brands because of their technical spec.

Alex Haigh, auto industry director at Brand Finance, said: "Chinese brands have struggled to extend overseas largely because, at their price point, they have been seen as less safe and less desirable alternatives to Western brands."

Haigh said this will start to change as more Chinese carmakers roll out their specific objectives to expand overseas.

"We may therefore start to see their models become as much a staple of not only Chinese but also European and American motorways as Toyotas and Volkswagens are today," he said.

But international brands still score better among customers on comfort, prestige, and technology and it will be some time before Chinese brands are able to position themselves realistically as luxury alternatives.

The research suggests there is clearly no instinctive barrier to demand against Chinese brands because country of origin is among the least important factors drivers consider.

With the right combination of models, service, communication, distribution, and a more established position in the market, it seems likely that demand will expand.

The study indicates more people consider WEY's model to have a "stylish design" than Land Rover (41.1 percent compared to 38.1 percent). And it also scored well as a "cool brand" in comparison to Land Rover (28.2 percent compared to 26.7 percent).

During the 2018 FIFA World Cup in Russia, WEY signed Cristiano Ronaldo as a brand ambassador and such marketing moves are likely to lead to further improvement in perception and performance in the near future, Haigh said.

"The key to breaking through into more premium segments is improving brand perceptions to move away from a competition on price," he said. "In the SUV segment, customers are mainly looking for spacious, reliable, and high-tech brands. Whether a product is made overseas or made in China is actually the least important consideration for customers."