There were already signs that China’s auto industry was struggling to attract native car buyers looking for a cheap, local car. Back in April, we saw drastic changes surrounding the Beijing Auto Show, as brands began closing models to refocus on other
Now, those signs are becoming even more apparent as a new study is shared with Bloomberg which declares that 75% of car owners in China would prefer that their next car be German. Yes, that includes BMW.
Majority of Car Owners in China Would Prefer a BMW over Their Current Make
As Chinese and greater-Asian brands struggle to win local consumers, the new study from the Boston Consulting Group reveals that 75% of Chinese auto owners prefer that their next car brand would be non-Asian, preferably German. This desire for change comes with a national aspiration of Chinese owners, including the next generation, to strive for status and success over cheaply-made convenience.
“Poor quality, uninspiring marketing, and an inefficient industry structure lie at the heart of Chinese auto makers’ woes,” said Colum Murphy of The Wall Street Journal in his April analysis of the Chinese auto market.
Dong Yang, executive vice chairman and secretary-general of the China Association of Automobile Manufacturers, admits to this. “Chinese brands are still very weak and I have no idea how long that will continue.”
An unceasing flood of recalls from American-made vehicles has left a general distaste for North American brands, but the Eastern market is still interested in the luxury of German brands like BMW.
The latest study was presented on Bloomberg TV by Rich Lesser, Boston Consulting Group President and CEO. During the discussion, participants noted that the next generation of car owners in China would have a significant influence on changing the global auto industry, the effects of which we have yet to fully see.