China’s Idealistic Young Car Buyers Demand Eco-Friendly Options

Car buyers in China are getting younger, and the young will soon be the dominant players on the car-buying scene, according to a recent Chinese market survey. In addition to impacting how cars are marketed in China, it may also impact how they're made: the findings show that more young car buyers are concerned not only with the performance of the cars, but also with their environmental and health aspects. To understand the young people’s car purchasing decisions and what influences them, Chinese social network Renren teamed up with Chinese auto site Chewen.com and global information company Nielsen. The survey was taken by users of the Renren network, and it was not mentioned what age the term “young people” referred to, nor the average income of the survey takers. However, the reports do indicate that of the respondents, 61.5 percent of “young people” claimed to be the primary decision makers when it comes to buying cars, with people born in the 90’s and later comprising 54.4 percent. According to a press release, the survey data shows that the car consumer base is fairly strong in China, where 62 percent of those surveyed already own a car. Half of those surveyed also have plans to buy a car within the next two years, with strong intentions of buying mid- to upper-market cars. SUVs tend to be popular with the young for being “practical”, and the average price of cars sold to this group is 208,000 RMB [US$33,400]. On top of practicality, the report says that environmental and health concerns are among top influencers of the young purchaser’s decision. From the press release: Nearly half of the young people will consider the car’s environmental impact, which has recently become an important purchasing factor. Nearly 80 percent of those surveyed place great importance on the health of their family and themselves, which is why the health and environmental impacts of the cars they choose to buy is paramount. They’re worried about not only emissions, but also the air quality and presence of hazardous chemicals within the car. With younger buyers becoming more and more important in the industry, to match their expectations, carmakers and marketers will have to change their strategy to adapt to this market. Marketers will no longer be able to solely rely on selling luxury and prestige, and will have to place more importance on the “greener” aspects of their cars moving ahead.

China’s Idealistic Young Car Buyers Demand Eco-Friendly Options

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Published March 21, 2014

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China’s Idealistic Young Car Buyers Demand Eco-Friendly Options