Changing priorities likely to impact auto industry 
2019-07-05
Chinese consumers are not willing to pay as much as before when buying a vehicle, according to a study by consulting firm J.D. Power published yesterday.
The study found that the average price of cars considered by buyers has dropped by 12 percent to 215,000 yuan (US$31,000) in 2019 from 244,000 yuan last year.
Willingness to replace the current car with a new one also decreased to 20 percent from 37 percent in 2016.
“Tighter budgets and the unwillingness to replace current vehicles make it hard to be optimistic about the new car market in 2019,” said Edward Wang, research director of J.D. Power China.
“Consumers in China are motivated by demands such as working toward a better life or enjoying driving, which means buying a new car is more of an option rather than a necessity,” Wang said.
In addition, battery technology and vehicle reliability have become big concerns in the new-energy vehicle market.
Worries about the range of NEVs have significantly reduced to 33 percent from 42 percent in 2018, while concerns about battery technology and vehicle reliability have increased by 9 percent and 8 percent, respectively.
The study also found that when considering a new car, the importance of technology has risen to 7 percent from 3 percent in 2018. 
Buyers also expect multimedia features with built-in navigation systems, bluetooth and Internet connection.
Wang said that customer expectations of in-vehicle technology have significantly increased when the buying budget exceeds 100,000 yuan. 
So it is important for manufacturers to provide flexible options.
Consumers are also wary of buying cars online. 
Although 70 percent of respondents say they “definitely would” or “probably would” buy a new car on the car manufacturer’s official website or a third-party trading platform or mobile app, only 7 percent of them said they are willing to pay the full price online.
The study, done online in March and April, was based on 11,977 responses.
