Chinese Buyers Prefer European over Local Brands

Car buyers’ preferences in China are shifting towards European models and away from domestic and even Japanese vehicles, according to a new study published today by JD Power Asia Pacific. This is the third year that the study takes place.

The latest edition included 65 brands and 161 separate models in nine segments and is based on responses from 4,979 potential buyers of new-vehicles located in 53 cities.

JD Power said it examined pre-purchase perceptions amongst Chinese consumers who intend to buy a new car in the next 12 months. The results show that the percentage of potential new car buyers considering a model by a European carmaker has increased substantially, from 25% in 2009 to 32% in 2001.

The reasons cited are positive perceptions of safety and engine and transmission technology, as well as strong recommendations from friends and family for European cars.

On the other hand, consideration for models by Japanese carmakers has followed the opposite direction, dropping from 32% in 2009 to 27% this year. New car buyers said that they don’t have the same confidence in quality, reliability and dealer service, nor do they receive positive feedback from family and friends.

Domestic carmakers are also facing a decrease in car buyers’ preferences, from 26% in 2009 to 20% in 2011. Poor quality, negative reviews and a lack of recommendation from family and friends are cited as the main reasons.

The study also showed that brand awareness and perception differs according to location and plays a major role in considering a new model.

“Brand awareness does depend on location; for example, in the South region, Japanese brands have particularly high brand influence due to their long tenure there,” said Dr. Mei Songlin, general manager of research at J.D. Power Asia Pacific, Shanghai.

Models with the highest levels of consideration in each segment:

• Compact segment: BYD F0 and Chery QQ3
• Premium compact segment: Chevrolet Sail
• Entry midsize segment: Volkswagen Polo
• Midsize segment: Chevrolet Cruze
• Lower premium midsize segment: BYD F6
• Upper premium midsize segment: Honda Accord
• Luxury segment: Audi A4L
• SUV segment: Volkswagen Tiguan
• MPV segment: Buick GL8

PHOTO GALLERY

Read more In Cars

Will China's BYD Bring the F3DM to the U.S. ?

When it comes to making cars, China is king. We’re talking the world’s largest car market, with over a hundred individual marques. So why is it that there are virtually zero Chinese car manufactures selling cars in the U.S. aka the world’s other largest car market? 

So far, China’s “Big Four” (well, the four most visible to those outside of China) have made and broken promises of bringing their vehicles to the North American market. Brilliance, Chery, Nanjing and Geely have all backed down from their plans to open dealerships and factories stateside. So far, not a single car from China's major automakers has touched down on U.S. soil outside a motor show.
Senior analyst Bill Visnic of Edmunds.com explains why: “This isn’t computers or cellphones, where you just get into a big-box store. You need some dealerships, and those things are tremendous investments of time and resources. [The Chinese] thought it was going to be a lot easier than it was.”
BYD hopes to change all that. China’s sixth largest automaker provided plug-in hybrid cars to the 2008 Beijing Olympics and now plans on bringing that hybrid, the awkwardly named F3DM, to the U.S.A. for Spring 2012. It still could be an uphill challenge, though.
The fallout from the slump in auto sales after the Global Financial Crisis, the government’s bailouts of two of the Big Three, the liquidation of numerous dealerships and the reduction in hybrid sales that came with the sudden drop in fuel prices is still being felt in much of America’s automotive heartland. Add to that the small market share commanded by hybrid and electric vehicles – just 2.2% worldwide according to JD Power – and BYD may be in over their heads already.
AS Mike Omotoso from JD Power explains:
“Because consumers are wary about electric vehicles and their driving range and batteries, they are even more likely to go with more established companies like G.M. and Nissan. The problem with the Chinese car companies is they are trying to run before they walk.”
Only time will tell if BYD’s U.S. plans end in fruition or failure.


photos

Read more In Cars