It must be Feng Shui at work. According to Forbes, American and even European automakers now perceive China as a Messiah amid declining profits in their countries.
Sure, the Chinese economy is still underdeveloped, with an annual per capita income of $930 in the cities and $299 only in the rural areas. But take note of this: General Motors' survey showed that an estimated 74 million Chinese families or about 20 percent of the country's population can afford to buy cars. The secret? Chinese are great savers. Those people I've mentioned earlier were said to hold about 80 percent of the savings deposit in China thus credit is easily available to them.
Auto Channel reported that a recent survey initiated by Sinotrust, a supplier of marketing and credit solutions in China, discovered that more than 80 percent of Chinese car buyers prefer vehicles with engine displacements between 1.3-liter and 2.0-liter, thus causing a decline in sales of small-displacement cars.
"The small displacement vehicles are usually poor in driving experience, comfort, and safety compared to larger vehicles. Therefore I would rather spend more money on a larger vehicle, such as Polo, Fit or Peugeot 206," said a car owner in an interview with Sinotrust. I guess he or she is referring to cars with Acura Legend body parts.
According to China Daily, one of the major reasons for the decline of small vehicles’ sales is the Chinese culture. Since cars are considered as status symbols in China, most consumers give higher value to social status over other aspects such as fuel economy and price when buying cars. Also, many small cars nowadays have failed to satisfy market demands for power performance, safety and environmental protection.
China's low-small segment vehicles started to decline in sales last year in which only 765,977 units were sold and that goes down by 7.2 percent each year.
At present, there are about 12 state-run automakers in China. But there's more to expect from China by way of its budding partnerships with foreign investors like Volkswagen, Toyota, General Motors and Ford Motors.
Now that calls for a merry dragon dance!
Sure, the Chinese economy is still underdeveloped, with an annual per capita income of $930 in the cities and $299 only in the rural areas. But take note of this: General Motors' survey showed that an estimated 74 million Chinese families or about 20 percent of the country's population can afford to buy cars. The secret? Chinese are great savers. Those people I've mentioned earlier were said to hold about 80 percent of the savings deposit in China thus credit is easily available to them.
Auto Channel reported that a recent survey initiated by Sinotrust, a supplier of marketing and credit solutions in China, discovered that more than 80 percent of Chinese car buyers prefer vehicles with engine displacements between 1.3-liter and 2.0-liter, thus causing a decline in sales of small-displacement cars.
"The small displacement vehicles are usually poor in driving experience, comfort, and safety compared to larger vehicles. Therefore I would rather spend more money on a larger vehicle, such as Polo, Fit or Peugeot 206," said a car owner in an interview with Sinotrust. I guess he or she is referring to cars with Acura Legend body parts.
According to China Daily, one of the major reasons for the decline of small vehicles’ sales is the Chinese culture. Since cars are considered as status symbols in China, most consumers give higher value to social status over other aspects such as fuel economy and price when buying cars. Also, many small cars nowadays have failed to satisfy market demands for power performance, safety and environmental protection.
China's low-small segment vehicles started to decline in sales last year in which only 765,977 units were sold and that goes down by 7.2 percent each year.
At present, there are about 12 state-run automakers in China. But there's more to expect from China by way of its budding partnerships with foreign investors like Volkswagen, Toyota, General Motors and Ford Motors.
Now that calls for a merry dragon dance!
No comments:
Post a Comment