Report: Car Sales Up as Driving Age Decreases

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    The Chinese car market has undergone unprecedented growth over the past five years, and younger people, especially women, are appearing behind the wheel, according to a report in Qianjiang Evening News on August 29.
    Statistics supplied by Sinotrust, a leading institution for marketing and credit solutions in China, showed that the number of privately-owned cars on Chinese roads in 2006 stood at 4.16 million, compared to 1.25 million in 2002.
    The number of female drivers rose from 20.3 to 30.9 percent, while the overall age of drivers dropped by three years to an average of 32.3 years – although this age is still higher than most Western nations, mainly due to income constraints.
    Sinotrust investigated a total of 127 brands of cars and 15,000 car owners in 24 cities, about 80 percent of them being first-time buyers.
   
    A father and his son visit a car exhibition held in Beijing in 2006.
    The total family monthly income of car owners has increased to some extent, from 9,235 yuan (US$1,223) in 2002 to 10,193 yuan (US$1,350) in 2006, or 10.4 percent, the report said. Meanwhile, car prices have continuously fallen in a highly competitive market, enabling more families to join the ranks of car buyers.
    From the number of registered cars in different regions, the markets in Beijing, Shanghai, and Guangdong have gradually entered a plateau period, with growth rates slowing down and falling behind the national average. Zhejiang, Jiangsu, Shandong, and Sichuan provinces are still maintaining a comparatively high growth rate due to a later start.
    Henan Province and the Inner Mongolia Autonomous Region have also just begun to report a higher growth rate, but overall ownership remains small.
    Regarding consumer values, the report found that car buyers in large cities stress personal characteristics, those in middle-sized cities regard status as important, and those in small cities are still governed by concerns over cost.
    Compared with 2005, Chinese car buyers now place the most importance on safety functions, gas consumption, and after-sales service while prices, brands, and exterior design have taken a step backwards in overall consideration, said the report. This indicates that consumers are becoming more and more practical.
    Regional consumption habits formed by historical and cultural factors and unbalanced economic development still influence some regional differences in car buying habits, the investigation found.
    Volkswagen dominates the market in north China, where people set store by vehicle endurance, safety functions, and high technology. Sales are especially high in the cities of Shanghai and Changchun, which are Volkswagen's two main production bases. Shanghai provides 9.2 percent of the manufacturer's Chinese sales and Changchun 3.1 percent.
    Japan's leading car manufacturer, Toyota, is strongest in Guangdong Province, accounting for a quarter of all its Chinese sales in 2006. But areas such as Hebei, Shandong, and Sichuan, have so far barely been tapped, and the company also doesn't see high sales in Beijing, Tianjin, or Shanghai.
    General Motors Corp. (GM) is doing well in eastern coastal areas like Shanghai, Zhejiang, and Jiangsu, which account for a third of all its sales.
    Chery, the Chinese auto company based in Wuhu in Anhui Province, is prospering in less developed inland areas, especially its home province, where it holds 5.1 percent of the market, 3.4 percentage points higher than its national market share.
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