Americans warming to idea of Chinese, Indian autos?
Geely GE – Click above for high-res image gallery
We've known for a while now that Mexicans are getting some Chinese cars with their ten gallon jars of pickles, but what about Americans? Would we go for vehicles from another country from across the Pacific? There's a wonderful moment at the end of Tucker: A Man and his Dreams where Jeff Bridge's Preston Tucker character pleads with the jury at his corruption trial that if American industry doesn't change change course, we'll soon be buying our cameras from the Japanese.
According to a new study, 15% of American new car shoppers are ready to buy cars from China, while 11% are ready to buy their wheels from India. Ready for the kicker? Just 16% said they would consider a car from Korea. Ouch. Said George Peterson, head of the study, "As Hyundai and Kia have been on the American scene for decades now, it's surprising that consideration for Chinese and Indian brands, sight unseen, would be about as strong as it is for the Korean brands." Surprising, sure. And if you live near Seoul, depressing. Full press release after the jump.
Gallery: Geely GE
[Source: Auto Pacific]
Americans Open To Vehicles From China and India
By George Peterson
July 28, 2009
New Study Shows Willingness to Accept Unknown Brands
Tustin, CA (July 28, 2009) - Newly released research shows fifteen percent of new car buyers in the United States say they would consider purchasing their next vehicle from China, and eleven percent would consider buying a car from India, without knowing specific brands or vehicles.This compares with sixteen percent who said they would consider a vehicle from Korea, which has been marketing vehicles in the U.S. since the 1980s.
"As Hyundai and Kia have been on the American scene for decades now, it's surprising that consideration for Chinese and Indian brands, sight unseen, would be about as strong as it is for the Korean brands," said George Peterson, president of automotive research firm AutoPacific and author of the study. "However, with so many premium and high-tech non-automotive products already being made in China and purchased by Americans, why not automobiles too? It appears that buyers in America are willing to give Chinese and Indian vehicles a chance right out of the box. Understanding these consumers will be critically important to the success of any newcomer."
The just-released study - "Opportunity for Chinese and Indian Brands in the USA" - provides new insight into who these consumers are and what they're looking for in their next car or truck. Based on a national survey of more than 30,000 new car and truck buyers, AutoPacific's 2009 Research Suite database reveals insights into the willingness of Americans to consider cars and trucks coming from China and India.
"Not only are a significant number of people willing to consider Chinese and Indian brands, this group consists of highly desirable buyers who would be coveted by any manufacturer. They tend to be young, well-educated, and affluent for their age and have good jobs in administrative, health care and middle management positions," added Peterson.
The study shows Chinese and Indian considerers are more likely to currently own Japanese and Korean brands, indicating that these brands may have the most competition from the new entries, rather than domestic brands like Chrysler, Ford and GM. The study also revealed that while those who would consider a car from China and India rate reliability and durability high, they are not as interested in the dynamics of a vehicle like handling, braking and acceleration.
About AutoPacific
AutoPacific is a future-oriented automotive marketing research and product-consulting firm. Every year AutoPacific publishes a wide variety of syndicated studies on the automotive industry. The firm, founded in 1986, also conducts extensive proprietary research and consulting for auto manufacturers, distributors, marketers and suppliers worldwide. Company headquarters and its state-of-the-art automotive research facility are in Tustin, California, with an affiliate office in the Detroit area. Additional information can be found on AutoPacific's websites:? http://www.autopacific.com and http://news.vehiclevoice.com.
By George Peterson
July 28, 2009
New Study Shows Willingness to Accept Unknown Brands
Tustin, CA (July 28, 2009) - Newly released research shows fifteen percent of new car buyers in the United States say they would consider purchasing their next vehicle from China, and eleven percent would consider buying a car from India, without knowing specific brands or vehicles.This compares with sixteen percent who said they would consider a vehicle from Korea, which has been marketing vehicles in the U.S. since the 1980s.
"As Hyundai and Kia have been on the American scene for decades now, it's surprising that consideration for Chinese and Indian brands, sight unseen, would be about as strong as it is for the Korean brands," said George Peterson, president of automotive research firm AutoPacific and author of the study. "However, with so many premium and high-tech non-automotive products already being made in China and purchased by Americans, why not automobiles too? It appears that buyers in America are willing to give Chinese and Indian vehicles a chance right out of the box. Understanding these consumers will be critically important to the success of any newcomer."
The just-released study - "Opportunity for Chinese and Indian Brands in the USA" - provides new insight into who these consumers are and what they're looking for in their next car or truck. Based on a national survey of more than 30,000 new car and truck buyers, AutoPacific's 2009 Research Suite database reveals insights into the willingness of Americans to consider cars and trucks coming from China and India.
"Not only are a significant number of people willing to consider Chinese and Indian brands, this group consists of highly desirable buyers who would be coveted by any manufacturer. They tend to be young, well-educated, and affluent for their age and have good jobs in administrative, health care and middle management positions," added Peterson.
The study shows Chinese and Indian considerers are more likely to currently own Japanese and Korean brands, indicating that these brands may have the most competition from the new entries, rather than domestic brands like Chrysler, Ford and GM. The study also revealed that while those who would consider a car from China and India rate reliability and durability high, they are not as interested in the dynamics of a vehicle like handling, braking and acceleration.
About AutoPacific
AutoPacific is a future-oriented automotive marketing research and product-consulting firm. Every year AutoPacific publishes a wide variety of syndicated studies on the automotive industry. The firm, founded in 1986, also conducts extensive proprietary research and consulting for auto manufacturers, distributors, marketers and suppliers worldwide. Company headquarters and its state-of-the-art automotive research facility are in Tustin, California, with an affiliate office in the Detroit area. Additional information can be found on AutoPacific's websites:? http://www.autopacific.com and http://news.vehiclevoice.com.
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Reader Comments (Page 1 of 4)
blank 9:04AM (7/30/2009)
I'm willing to chalk this up to the fact that most Americans are ignorant of the fact that Hyundai and Kia are Korean brands. Given the relative success of those two brands here lately, I'd bet there are people who OWN Korean cars who told AutoPacific they wouldn't consider one.
Peace
policy
Reply
NudeLove93 9:21AM (7/30/2009)
And I'd eat my shoe if a third of them could recognize a difference between North and South Korea.
joe23521 9:42AM (7/30/2009)
I bet most of the 16% thought Kim Jong Il owns Hyundai.
Yaroukh 10:13AM (7/30/2009)
Maybe it rather tells something about such surveys.
chconline 11:09AM (7/30/2009)
Well to add to that:
"Would we go for vehicles from another country from across the Pacific"
Like Japanese branded vehicles? We've been buying those for ages.
Beau 11:37AM (7/30/2009)
Totally disagree.
The article states " "As Hyundai and Kia have been on the American scene for decades now"
You state
"Given the relative success of those two brands here lately,"
That's the reason.
I can say that at least amongst my circle of friends, mid twenty to mid thirty professionals typically bobbing about the 6 figure salary area, Hyundai and Kia are far from well regarded.
It's almost like saying "Yugo" in a crowded room some 20 years ago... and I _am_ a fan of what they've been cooking lately, I feel almost silly trying to convince people they've turned around over the past few years. Turning around an image takes time. It's a cultural thing.
Considering that China has become the manufacturing superpower, and India the intellectual outsourcing superpower, two to of the world's fastest growing economies, this article holds no surprises to me.
homunculus 12:36PM (7/30/2009)
people think samsung and lg are japanese.
ale 2:22PM (7/30/2009)
I bet most of the 16% thought Kim Jong Il owns Hyundai.
I doubt 78% know who the hell Kim Jong Il is...
MTU 5.0 9:06AM (7/30/2009)
Not that I'm in a hurry to buy a Korean or Indian car, but at least those countries have some semblance of freedom. As for China, no thanks.
Reply
Bloke 9:17AM (7/30/2009)
The Chinese have the freedom to opt for an American car and have done for years - but that's not the case in reverse.
"Freedom" is a different quantity to different nationalities and cultures. Some would say that CCTV in British cities isn't freedom. Some would say that censorship of live US television after the Janet Jackson episode isn't freedom, either.
Pick your poison.
MTU 5.0 9:25AM (7/30/2009)
And some would say trampling religious freedoms, stifling dissent (no matter how peaceful), and imprisoning those who express their opinions about the government are pretty cut and dry. No one likes to talk about it because China's economic system has adopted a more capitalistic approach, but they are very much a communist country where freedom and individual liberties are too often denied.
jpm100 9:35AM (7/30/2009)
"The Chinese have the freedom to opt for an American car and have done for years - but that's not the case in reverse."
You mean a car with an American Brand name lent to a Chinese made car with the profits required to stay in China.
Bloke 9:51AM (7/30/2009)
"You mean a car with an American Brand name lent to a Chinese made car with the profits required to stay in China."
The vast majority of profit is usually retained by any subsidiary company anywhere in the world for future working capital. However, just last year GM took a dividend from its Chinese subsidiary.
Bloke 9:53AM (7/30/2009)
"And some would say trampling religious freedoms, stifling dissent (no matter how peaceful), and imprisoning those who express their opinions about the government are pretty cut and dry. No one likes to talk about it because China's economic system has adopted a more capitalistic approach, but they are very much a communist country where freedom and individual liberties are too often denied."
And despite this, you have no problem whatsoever with American companies doing business within, and making money from, such a regime!
joe23521 10:59AM (7/30/2009)
I don't get why EVERYTHING about China needs to be politicized.
RMN 1:35PM (7/30/2009)
"The Chinese have the freedom to opt for an American car and have done for years - but that's not the case in reverse."
Chinese cars is cant pass emissions or safety regulations in the US for the most part.
Aptera4tw 8:06PM (7/30/2009)
Bloke:The Chinese have the freedom to opt for an American car and have done for years - but that's not the case in reverse.
Can you tell us exactly why Chinese cars cannot be sold in the US. Does it have anything to do with emissions and safety regulations or is it just that the US is too challenging a market for many brands to survive. Lets see how well the Italians do next year...
Bloke: And despite this, you have no problem whatsoever with American companies doing business within, and making money from, such a regime!
oooh... not just big bad greedy American companies but also friendly countries like Finland....those Fins must be furious with their government, letting Nokia sell mobiles in China. China has come a long way after opening itself up to the world, the first modern US trade mission occurred in 1973, after Nixon's visit. You could say that American agressiveness brought the introspective Chinese into the modern global economy. China is making progress towards its own style of democracy, trade and openness are the ONLY things "outsiders" can do to bring about positive change.
Bloke 8:26PM (7/30/2009)
Aptera - when it comes to China, most Americans (especially those who aren't travelled) will always turn every issue into a political one.
If you're really set against buying a Chinese car because of that country's human rights record, that's a fair enough right to choose. However, you can't use that excuse when you're willing to have your own country's corporations make money from the country adopting the practices you're set against. It's sheer hypocrisy. I'd say the same to anybody - regardless of the country they're from - since many western countries do extremely well out of China.
Fatima 9:09AM (7/30/2009)
Haha after seeing the Chinese Geely Crash test and the Tata Nano test. I'd rather go for the Indian cars. Does Land Rover and Jaguar count? :P
Reply
Bloke 9:18AM (7/30/2009)
Land Rover and Jaguar aren't Indian. They're both British companies with an Indian parent company.