Capturing China's auto buyers

Shanghai - China's auto market is booming with approximately 70% of the market made up with first time buyers.

China, the second-largest car market in the world, is expected to eclipse the US within the next decade. China currently has around 47 manufacturers and 82 brands.

While the fast developing market has tremendous potential, Jim Sailor, MD for TNS Greater China, said Chinese consumers are becoming more discerning and developing higher expectations of auto brands due to the wide choices available.

Speaking at the Economist Group's Fourth Automotive Industry Leaders Roundtable in Shanghai, Sailor said it is critical for car manufacturers to be successful over the long term in the Chinese market and a solid brand identity is key.

A survey revealed only 38% of new car buyers are commited to a particular brand, meaning car manufacturers must accelerate their efforts to boost their brands.

"Although first time buyers dominate the landscape currently, it won't be long before a second wave hits the market. First time buyers only buy for the first time once," Sailor said.

Sailor pointed out a large proportion of car buyers in China look to the internet as a very important source for information when making a purchasing decision.

He said online was the right vehicle for marketers to reach consumers, but said they need to look beyond simple company websites.

"If they develop a strong online presence and deliver a rich stream of online news into the marketplace through chat rooms, blogs, press releases and trade reviews, then they are doing the right thing," he added.