Low-tier cities boost China's future auto market growth

At the Auto Industry Information Conference held on July 10 by the China Association of Automobile Manufacturers, the China Association of Automobile Manufacturers and Nielsen jointly released the White Paper on China's Auto Consumption Blue Ocean Market Insights. The "White Paper" is based on a sample survey of car consumers in various cities across the country ", providing insights into the shift in demand of Chinese car consumers, and providing forward-looking proposals for auto companies to seize market opportunities and open up blue ocean space.

Low-tier cities--a powerful engine for the future growth of China's auto market

A white paper jointly issued by the China Association of Automobile Manufacturers and Nielsen shows that consumers from third and fourth-tier cities account for 68% of the total number of consumers who plan to purchase cars in China in the next year, compared with 55% of existing owners. Among the potential consumers who are 68% from the third and fourth tier cities, the number of consumers who purchase cars for the first time is as high as 56%.

"Because of the continuous development of urbanization in China and the overall improvement of the living standards of the residents, the consumer potential of third- and fourth-tier cities has been further released. Consumer demand for passenger cars has gradually moved from the coastal areas to the central and western regions. Regionally, the transfer from a second-tier city to a low-level city, said Dong Yang, executive vice president and secretary-general of the China Automotive Industry Association.

From the aspect of car purchase budget, nearly 60% of consumers in third and fourth-tier cities have a car purchase budget of less than RMB 120,000, and one-third of consumers have targeted the price range between RMB 8 to 120,000.

Consumers in low-tier cities take practicability as a primary consideration when purchasing a car. Fuel consumption (55%), safety (47%), and product quality (43%) rank among the highest in consumer attention; Comfort (27%), brand awareness (26%) and in-car configuration (24%) are relatively low. The pragmatic attitude of consumers in low-tier cities is also reflected in their emphasis on product after-sales services, safety, and quality commitments of manufacturers, but they are interested in whether they are equipped with energy-saving power technologies, intelligent technologies, and customized services. relatively low.

A white paper jointly published by the China Association of Automobile Manufacturers and Nielsen shows that compared with low-tier cities, consumers from the first and second tiers only account for 23% of the total number of consumers in China in the coming year, but in these ones, Of the intentional consumers in second-tier cities, 65% of new car demand will come from repurchasers (ie consumers who plan to purchase or redeem). Therefore, the demand for re-buying in the first- and second-tier cities and the market opportunities they bring will not be overlooked by auto companies in the short term.

In the form of the body, the sedan (60%) and SUV (45%) are popular with consumers in the first and second-tier cities. In terms of functional preferences, in addition to the security configuration, energy-saving power systems have become the consumer's first choice. "High-end sedan and SUV cars have become a new opportunity market for auto makers to tap potential consumer demand in first-tier and second-tier cities. For first and second-tier cities, consumers are not just simple vehicles, they are looking for The car that can meet their higher demand is in this sense, the car equipped with advanced power and intelligent technology will win the favor of more consumers, "said Yu Haixia, vice president of business development of Nielsen China.