MNI China Car Purchase Indicator: Chinese Car Buying Sentiment Steady In June - Volkswagen Consolidates Top Position As Favourite Brand

Chinese consumer sentiment towards the car market was little changed in June, with a small upward revision in the assessment of the purchasing environment and an equivalent drop in fuel price expectations providing a modest boost.
 
The MNI China Car Purchase Indicator, a composite indicator designed to gauge overall conditions in the car market, rose 0.5% to 92.0 in June from 91.5 in May. Both components of the indicator contributed positively with Car Purchase Expectations up 0.4% to 101.5 and Gasoline Expectations down 0.5% to 117.5. The latest rise caps off a volatile quarter as respondents weighed current economic uncertainty and the degree of further stimulus. Despite some jitters in May, the average of the overall indicator in Q2 rose to 93.5, up from 89 in Q1, a reflection of the broad improvement in household confidence and spending intentions in the last three months as measured by the Westpac MNI China Consumer Sentiment Survey, which is the parent of this publication.
 
Results from the quarterly special questions showed that Volkswagen consolidated its grip as the brand of choice among ordinary Chinese consumers, commanding 26.6% of responses as favourite brand, up from 20.4% in March. Meanwhile, Audi surged into second place with a 14.9% share after claiming just 8% in the previous quarter. BYD was the most popular domestic brand, although it slipped from fifth favourite in March to eighth favourite in June and received 2.7% of responses. Consistent with a pickup in preferences for more premium brands, results from the second special quarterly question highlighted a growing concern for car safety while price took a backseat. 58.9% said that safety was the main factor they considered when buying a car and 11.9% nominated price.
 
Car ownership levels were stable in June at 38.1% while a slightly reduced portion, at 17.6%, said they were planning on buying a car in the next 12 months. Of those planning to buy a car, budgets drifted towards the more expensive ranges. A series high 36.1% said their planned budget was above CNY 200,000, while the CNY 100,000 – CNY 140,000 range, which is broadly the ‘mid-range’ option, was the next most popular with a 33.3% share of responses.