“Green” – A tough sale for Chinese car makers

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07.11.2008 China

Chinese car manufacturers need to speed up their efforts to offer Green” propositions

7th November 2008, Shanghai – Chinese car manufacturers need to speed up their efforts to offer trustworthy “Green” propositions to the market if they want to successfully sell alternative energies and remain competitive in the future. This is one of the principal outcomes of a recent survey conducted among 1,100 car owners and purchase intenders in mainland China by one of the leading market information companies, TNS China Automotive.

Chinese car buyers perceive the environmental issue to be beyond the simple notion of eco-friendliness, and consider the offer of reliable and affordable technology as being inextricably linked to a good “Green” image. However, in the very aspects that define “Green”, Chinese car manufacturers are rated very low. While nearly one third of Chinese car buyers consider fuel efficiency (61 percent) and reduced emissions (64 percent) to be important factors in a good green image, only 16 and 17 percent of those interviewed attribute these environmental qualities to domestic car makers. Likewise, with 15 percent of respondents, the capability of Chinese manufacturers to provide reliable technology is rated very low compared to 53 percent of consumers that consider this quality important for a good green image.

Graph: Aspects that define “Green” and association with Chinese manufacturers

What are the important factors of a good green image for car manufacturers?

Which car maker nationality applies to each of these statements?

Home-grown vehicle manufacturers over-satisfy consumer expectations (38 percent) with 44 percent of respondents associating Chinese car manufacturers with affordable technology. “Nevertheless, as the domestic car makers’ only stronghold, it is insufficient without efficient and reliable market offers” comments Klaus Paur, Shanghai based TNS Automotive Director for North Asia. “Recent efforts to develop alternative energies have not yet helped Chinese car makers improve their image and consumers still rate their qualities considerably lower than those of the more recognised foreign Joint Venture manufacturers.”

Results indicate Japanese car manufacturers are best placed to lead the way into alternative energy solutions in China having scored high in a range of “Green” image indicators:

  • Minimized emissions: 56%
  • Good fuel efficiency: 56%
  • Reliable technology: 54%
  • Affordable technology: 48%

Unsurprisingly, a Japanese brand is perceived as the top “green” car brand in China. For every second car buyer (51 percent), Toyota comes to mind as a green automotive brand. “Although vehicle sales lag far behind expectations, Toyota’s locally produced Prius hybrid car has pioneered the “green” market offerings in China” Klaus concludes. “Toyota has laid the foundations for success in the race to a greener automotive industry.

About this study

TNS China Automotive conducted the “Going Green” study from late September to early October 2008 to deliver expert industry data and insights that contribute to a better understanding of Chinese motorists’ mindsets concerning environmental issues. TNS interviewed 1,100 car owners and purchase intenders online and face-to-face in 7 cities across mainland China. Top study results revealed by TNS China Automotive Director for North Asia, Klaus Paur, at the 6th Annual Auto Forum in Shanghai, Friday 7th November 2008.

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About TNS

TNS is a global market information and insight group.

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TNS Automotive is the leading global provider of automotive market information and insights, with a specialist network of over 350 experienced and dedicated researchers worldwide.

Living and breathing automotive, our experts address the complex research needs of clients including major global automotive and tyre manufacturers, component suppliers, oil companies, repair specialists, parts distributors, dealerships and advertising agencies. Whether our clients are developing new products, optimising advertising and media expenditures, defining new market segments or consolidating their position in the marketplace, our complete portfolio of expert customised and syndicated automotive research solutions delivers added value.

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TNS Market Research Going Green

"Going Green" An overview of Chinese car buyers' attitudes towards environmental issues

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