Automakers Change Their Strategy in China Market

Marvin Zhu, a senior analyst with LMC Automotive, who writes for China Automotive Monthly published by J.D. Power Asia Pacific, offers insight about the changing strategies of automakers in China.

Automakers in China are changing their way of thinking in a market that is diversifying. Foreign brands are starting a new campaign to expand capacity.Volkswagen Group is going to set up new plants in Ningbo and Xinjiang, while Nissan Motor Co. will add a Dalian plant for Infiniti. General Motors, Ford, PSA, Hyundai, Honda, BMW and Toyota Groups are all going to have new plants ready for vehicle production in 2012. As these companies’ performance in other markets is expected to be less than robust, the booming Chinese market is much more of a sure bet. Continue reading ›

Smartphones Continue to Transform Vehicle Purchase Process

Sujata Sontakke

The vehicle purchase as an interactive experience with mobile Web and mobile Apps was explored by Dane Holewinski, director of marketing at Greystripe, a brand-focused mobile ad network that is a division of ValueClick. He told participants at the recent 2011 Automotive Internet Roundtable that in the next year, between 5 and 7 million new vehicles will be purchased by owners of iPhones and Androids, and 80% of these iPhone and Android owners will use their smartphones for their auto purchases.

Holewinski provided a few details from a study of 850 iPhone users who were recruited using ads through networks and he also presented highlights from two specific brand phone ad campaigns. A few key points are summarized:

• A majority (80%) of study respondents (iPhone users) who are in the market for a vehicle will use a mobile device extensively for their auto purchase.

• Some 50% said they will use it on the lot, while 30% will use their phone to search for a dealership and 20% will contact the dealership by smartphone.

• An interesting data point: Over 50% of these prospective buyers are in the market for foreign brands. Continue reading ›