Purchase Consideration for Chinese Domestic Models Has Increased Notably
Audi and Volkswagen are the Most-Frequently Considered Models in Five out of 10 Vehicle Segments.
SHANGHAI: 30 August 2013 — The percentage of consumers in China who intend to purchase a new Chinese brand vehicle has increased significantly, primarily driven by the increase of Tier 2 and Tier 3 cities, according to the J.D. Power Asia Pacific 2013 China New-Vehicle Intender Study SM (NVIS) released today.
The study, now in its fifth year, examines pre-purchase perceptions and considerations rate among consumers in China who intend to purchase a new vehicle within the next 12 months. The study is designed to provide key consumer insights by examining brand awareness, purchase consideration, rejection reasons and media usage, as well as consumer perceptions of various models among these new-vehicle intenders. A total of 62 vehicle brands and 177 models in 11 vehicle segments are included in the 2013 study.
European brands are most popular among vehicle intenders across 67 cities examined in the study. More than 30 percent of vehicle intenders (31%) in China consider to purchase a European model. European brands as a whole receive the highest consideration rate among all brands of origins,
The proportion of new-vehicle intenders who indicate they would consider purchasing a model from a Chinese domestic automaker has increased to 27 percent in 2013 from 20 percent in 2012.
Domestic brands are particularly popular among consumers in Tier 2 and Tier 3 cities, where they are considered by 28 and 42 percent of new-vehicle intenders, respectively.
In comparison, approximately 16 percent of consumers in Tier 1 cities consider purchasing a domestic model. Consumers in Tier 1 cities don’t perceive Chinese domestic brands as an accurate reflection of their social status.
“Tier 2 and Tier 3 cities will be the new market in the future, as the Chinese automotive industry evolves,” said Tony Zhou, director of automotive research at J.D. Power China, Shanghai “It’s vital for manufactures to increase their effectiveness by investing marketing tools and choose right channels and format in advertisement, to influence local customers in Tier 2 and Tier 3 cities.”
The consideration rates for European and Japanese brands among China have declined by 4 percent and 6 percent, respectively.
The study observes that the consideration rate for Japanese models has been declining continuously to 18 percent in 2013 from 32 percent in 2009. American brands receive a 15 percent consideration rate.
The study finds that the Internet and TV are the most effective channels for connecting with and influencing new-vehicle intenders, with the Internet being the most influential communication channel. Approximately 61 percent of new-vehicle intenders obtain brand information from the Internet, while 54 percent gain information through TV.
Among Chinese brands, the Roewe 550 (lower premium midsize segment) and Chery QQ (compact) have the highest consideration rates in their respective segments.
Audi models have the highest consideration rates in the entry luxury, luxury and luxury SUV segments, while Volkswagen models have the highest consideration rates in the entry midsize and SUV segments.
Models with the highest rates of consideration in each vehicle segment1 are:
- Compact: Chery QQ
- Premium compact: Chevrolet Sail
- Entry midsize: Volkswagen Jetta
- Midsize: Buick Excelle
- Lower premium midsize: Roewe 550
- Upper premium midsize: Honda Accord
- Entry luxury: Audi A4L
- Luxury: Audi A6L
- SUV: Volkswagen Tiguan
- Luxury SUV: Audi Q5
The consideration rates for midsize and SUV models have increased year over year by 5 and 6 percent, respectively, while the consideration rate for premium midsize models has decreased by 4 percent from 2012.
Quality and safety, performance and configuration, and brand and image are the top three criteria for consideration among new-vehicle intenders in China.
The study also measures brand influence score, which is familiarity and favorability of automotive brands among new-vehicle intenders in China. BMW achieves a Brand Influence Score of 679 on a 1,000-point scale, followed by Mercedes-Benz (670 score), FAW-Volkswagen (649), Audi (629) and Shanghai Volkswagen (621).
The 2013 China New Vehicle Intender Study is based on responses from 6,809 new-vehicle intenders in 67 cities. The study was fielded from April to June 2013.
The China New-Vehicle Intender Study (NVIS) is one of eight consumer-based benchmark studies conducted by J.D. Power Asia Pacific in China. Other 2013 studies conducted by J.D. Power Asia Pacific include:
- The China Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in late June.
- The China Customer Satisfaction Index (CSI) Study, which examines satisfaction with the after-sales service experience among vehicle owners between 12 and 24 months of ownership, was released in late July.
- The China Original Equipment Tire Satisfaction Index (OE-TSI) Study, which measures customer satisfaction with original equipment tires, will be released in September.
- The China Manufacturer Website Evaluation Study (MWES), which measures the effectiveness of OEM websites on the basis of the Voice of the Customer, will be released in late September.
- The China Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to six months of ownership, will be released in October.
- The China Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to six months of ownership, will be released in November.
- The China Vehicle Dependability Study (VDS), which evaluates overall vehicle dependability during the first 25-36 months of ownership, will be published in December.
1. MPV segment is not shown among the nameplates due to small sample.
About J.D. Power Asia Pacific
J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, Australia, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and
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About J.D. Power
J.D. Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., J.D. Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power is a business unit of McGraw Hill Financial.
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