Chinese Auto Buyers More Savvy: Survey

Chinese car buyers value practical and convenient in-car functions with a proven track record of reliability and are willing to pay more for advanced technologies, according to a market survey released yesterday in Shanghai.

The two-month-long market study was organized by one of the leading global car components producers Visteon, involving hundreds of car owners in Shanghai, Beijing and Guangzhou.

The study showed that Chinese consumers are becoming more knowledgeable and business savvy, which is supported by the following findings:

• Chinese car owners embrace integrated, hands-free phone technology.

• Chinese car owners on average spend 2.5 hours a day in their cars and attach great importance to audio entertainment systems. Systems that support MP3 technology are preferred.

• The in-car USB port is a familiar concept product that is widely welcomed by Chinese.

• Wireless charging systems appeal to car buyers.

• Chinese consumers expect faster and more efficient climate control products for their cars, to address constant changes in temperatures.

"The China market has changed dramatically and car owners now dont always believe low cost is best," said Yang Weihua, marketing director of Visteon Asia Pacific.

"The consumer clinic research findings are critical in supporting our product development, business initiatives and ultimately our customers. By fully understanding consumers' preferences and insights, we are able to adapt Visteon' s leading-edge technologies to better fit the China market."

Visteon has set up 21 enterprises in China, of which 19 are joint ventures with major automobile companies in the country. Shanghai is the company's Asia-Pacific headquarters as well as the research and development centre.

Over the past few years, Visteon has achieved great success in the Asia-Pacific region, especially in China, although it registered big losses in the North American and European markets, which pulled down the companys overall global performance to the doldrums, said experts.

The company's 2005 annual report showed that it was still running in the red last year with a net loss of US$270 million, on total sales of US$17 billion.

However, the company has been in the black since the beginning of this year, after transferring 23 loss-making facilities to its former parent company Ford.

Visteon earned US$3 million, or US$0.02 per share, during the January-March period, compared with a loss of US$163 million, or US$1.30 per share, during the same period last year. It expects to have about US$50 million in free cash flow by the end of this year, according to a stock exchange notice released by the company on May 2.