Local Brands in China Rise on Intender Lists; European Brands Remain Popular

China customers online 80410767Nearly one-third (31%) of consumers in China who intend to purchase a new vehicle consider purchasing a European model, although the percentage of consumers who intend to purchase a new domestic brand vehicle has increased significantly, primarily due to the inclusion of consumers in Tier 2 and Tier 3 cities, according to the 2013 China New-Vehicle Intender Study (NVIS).

The percentage of these intenders who, in the next 12 months, would consider purchasing a Chinese domestic model has climbed to 27% this year from 20% in 2012. China’s domestic brands are especially popular among consumers in Tier 2 (28%) and Tier 3 (42%) cities. In contrast, only 16% of consumers in Tier 1 cities consider purchasing a local model in China because these consumers perceive that Chinese domestic brands do not accurately reflect their social status, the study finds. Continue reading ›

Initial Quality in China Sets High Mark; Domestic Brand Quality Dips

Dr. Mei Songlin

After improving steadily during the past decade, overall new-vehicle initial quality in China set a new record this year, with an average of 6 fewer problems per 100 vehicles (PP100)* than the industry average score in 2010, according to our 2011 China Initial Quality Study (IQS), which is based on evaluations from 17,675 buyers of new vehicles in 37 major cities of China during the first 2 to 6 months of ownership.

Most of the improvement this year was driven by higher quality—42 fewer PP100 on average—in Korean brand models, although models from Japanese brands, as a whole, have the lowest incidence of problems in the China market. In contrast, the initial quality of Chinese domestic brand models slipped this year. Problem incidence rose by 8 PP100, according to the 2011 study. Some more study findings are highlighted:

• Overall initial quality at the industry level averages 162 PP100, which is the lowest problem rate since the study was first conducted in China in 2000. Continue reading ›