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Chinese autobuyers have no brand loyalty yet
(Xinhua)
Updated: 2004-06-18 15:22

China's thriving car market boasts huge business opportunities, yet automakers should put more efforts to make the local consumers loyal to their products, according to a recent survey of three Chinese metropolises.

The survey was conducted by AC Nielsen, a renowned market research company, in Beijing, Shanghai and Guangzhou, also China's three major automobile markets.

Private car owners in China have not yet established loyalty towards certain brands of motor vehicles, according to Philippe Coquelle, head of the automotive department of AC Nielsen.

Though some specific brands have built a monopoly on the Chinese market, they have not yet won absolute favor among the local consumers, the survey said.

The survey discovered that about 11 percent of Beijingers owned a motor vehicle, placing the city first among the three investigated. The popularity rate stood at 4 percent and 5 percent, respectively, in Shanghai and Guangzhou.

The ratio was largely decided by price level for motor vehicles, according to the survey.

A private vehicle is priced at 139,000 yuan (US$16,747) on average in Beijing, while in Guangzhou and Shanghai, the figure rose to 190,000 yuan (US$22,892) and 220,000 yuan (US$26,506), respectively.

Besides deluxe models, brands have not showed their competitive edge for consumers yet because there is still no close contacts between makers and consumers, Philippe said.

Car dealers should also make more efforts to improve service system and gradually build up brand loyalty, he added.

It is predicted that China will produce over 2.8 million cars this year, up from the 2.07 million last year.

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