JD Power: 2022 China New Car Purchase Intention Study

Research shows that the brand influence of independent new forces has increased significantly, with the greatest improvement; the purchase intention rate of independent new forces has also increased most significantly, driving the overall purchase intention rate of independent brands to be further improved.

This is the 14th consecutive year that JD Power has released a study on Chinese new car purchase intentions. The study focuses on the potential car buyers' awareness and preferences for car brands, their experience with intelligent configurations, the specific brands and models they are considering purchasing, their preferred car configurations, and factors they consider when purchasing. Potential car buyers are consumers who plan to buy a car within the next six months. The brand influence score (BIS) included in the study is a comprehensive evaluation index based on brand awareness, brand familiarity, and brand preference.

The research found that the brand influence score of independent emerging brands increased by 52 points, the largest improvement, ahead of traditional independent brands (increase of 38 points) and international brands (increase of 24 points).

At the same time, the study also found that the purchase intention rate of domestic brands has further increased, with 53% of potential customers intending to purchase domestic brands. Among domestic brands, the purchase intention rate of new power brands has increased more significantly, reaching 67%. The purchase intention rates of other countries' car series have all declined.

Wang Qinghua, General Manager of JD Power China Joint Research, said: "As the 'New Four Modernizations' have led to rapid changes in China's auto industry in recent years, the performance of independent new power brands has continued to strengthen, driving the overall upward progress of independent brands. Fundamentally, it is the innovative behavior based on key technologies and actual consumer needs that has quickly, effectively and continuously brought infinite vitality to the brand. The positive feedback from consumers reflects the improvement of trust in 'Made in China'. This also puts forward higher requirements on how to effectively compete in the Chinese auto market, especially in the new energy field.

For major new energy manufacturers, the key to standing out is to fully tap into consumers' requirements for design, performance and configuration, and based on this, further enhance and connect different smart scene experiences; at the same time, by selecting channels that suit consumers' different preferences for promotion, they can deepen their understanding of the products and ultimately achieve further sales growth."

Other findings from the study include:

• The intended purchase rate of new energy vehicles has further increased: The intended purchase share of new energy vehicles in 2022 is as high as 27%, among which the intended purchase share of new energy sedans has increased more significantly. In the new energy vehicle market segment, the intended purchase rate of medium-sized pure electric vehicles has increased the most, and the intended purchase rate of small pure electric vehicles has decreased the most. The consumption upgrade trend in the new energy vehicle market is obvious.
• China's market acceptance of new energy vehicles is significantly higher than that of the United States: Comparing data from China and the United States, the proportion of potential customers with high willingness to purchase new energy vehicles in the United States is only 19.6%, while in China it is 33.6%. Therefore, compared with the US market, the Chinese market is significantly more accepting of new energy vehicles.
• Third- and fourth-tier cities have great potential for the development of new energy vehicles: the experience and awareness of new energy vehicles are positively correlated with the purchase intention rate. The higher the awareness of new energy vehicles, the higher the purchase intention rate. Compared with first- and second-tier cities, potential customers in third- and fourth-tier cities have significantly lower experience and awareness of new energy vehicles. Therefore, for the development of the new energy market, third- and fourth-tier cities may have great potential.
• The post- 95s generation prefers domestic brands, values ​​intelligence, and cares about the vehicle's "appearance" when buying a car: The post-95s generation has the greatest confidence in domestic brands and has the highest purchase intention rate for domestic brands; compared with other age groups, the post-95s generation pays more attention to intelligence when buying a car; in addition, the post-95s generation also cares most about the vehicle's "appearance". Among the five main reasons for buying a car after 95s, "the vehicle has a good appearance/attractive design" accounts for 7%, ranking first; in terms of market promotion methods, compared with other age groups, the post-95s generation relies more on information from official online channels and social networking sites, and prefers content endorsed and promoted by car owners and self-media.