MNI China Auto Purchase Sentiment Report: Chinese Car Buying Sentiment Ticks Up - Volkswagen Popularity Recedes, Buick Surges

Chinese consumers were upbeat about the car purchasing environment in September, but were less likely to act on this assessment, according to the latest MNI China Auto Purchase Sentiment Report.
 
Further discounting by car retailers as well as a perception of better quality and choice of vehicles available helped push the Car Purchase Expectations Indicator, a measure of whether consumers think it is a good time to buy a car, 1.6% higher to 101.8 in September. This improved picture for the buying outlook, which consumers rated as the best in a year, was complemented by a 1.9% fall in gasoline price expectations, which fell to the lowest in five months.
 
The composite indicator for sentiment about the auto sector, designed to take into account both buying sentiment as well as fuel price expectations, rose 2.2% to 88.8 in September. The increase in the MNI China Car Purchase Sentiment Indicator is a positive sign for official car sales, which have been hit recently, although there is not yet any definitive indication that this pick up in the assessment of purchasing conditions will translate into increased buying activity. Note that the tax cut on small vehicle purchases came after the September survey period ended, although should lend support in the coming months.
 
In contrast to the uptick in sentiment, actual planned purchases fell again in September, extending the fall seen in August. Those planning to buy a car in the next 12 months fell to 14.3%, from 18.7% in August led by a fall in those who were planning on upgrading or adding to their current vehicle. Those who said they currently owned a car recovered some of August’s fall, but remained relatively low at 39.9% of respondents.
 
Competition for China’s favourite brand heated up in September. Volkswagen remained in top position, but only just pipped Buick to the post, with 16% versus 14% of responses respectively. This is in stark comparison to June when Volkswagen accounted for around 28% of response, more than double its closest rival. Note that the VW emissions scandal only came to light after our latest survey had ended. By type of car, Sedans remained most favoured, however continued to lose ground as SUVs held steady with the second highest share of responses. MPVs and mini-vans were the most improved as the third most popular choice.