Buyers getting hands-on for better experience

Carmakers are investing in online sales and marketing but a recent survey of Chinese car owners finds that kicking the tires and getting their hands on the wheel are becoming increasingly important for car purchase decisions.

Those who made up their mind during the test drive process accounted for 21 percent of car owners polled, up from 15 percent in 2021, said J.D. Power China on Thursday.

In comparison, the percentages of car buyers who made their decisions in other steps were smaller compared with last year's findings.

The findings this year were based on responses from 25,154 vehicle owners in 70 Chinese cities who purchased their new vehicle between June 2021 and February 2022.

The annual study measures customer satisfaction with the purchase experience among new vehicle buyers as well as among rejecters, defined as those who seriously consider a brand but ultimately purchase another.

Buyer satisfaction is based on seven measures: online experience, communication before visit, reception, showroom visit, test drive, deal and delivery.

Rejecter satisfaction is based on similar measures, with deal and delivery replaced with negotiation.

The J.D. Power China study shows that of the top reasons for giving up a model, the driving experience not being as good as expected during the test drive is highest, confirming the importance of the test drive during the sales process.

"Currently, consumers in China who visit a dealership spend a lot of time experiencing and verifying products by themselves instead of receiving information from salespeople," said Ann Xie, head of digital retail consulting practice at J.D.Power China.

"Brands need to change based on the needs of their customers, including the upgrade of the existing test drive, as well as improving the process and experience of scheduling a test drive online."

The J.D. Power China study shows luxury brands led the market again this year, scoring 759 on a 1,000-point scale, nine points higher than in the mass market segment.

Of them, Porsche sat atop the list of premium carmakers with a score of 768. Audi followed with 765. BMW and Cadillac ranked third in a tie, both with a score of 759.

Of volume brands, SAIC-GM-Buick and GAC Honda had the highest score, each earning 759. FAW Hongqi and GAC Toyota ranked third in a tie, each with a score of 756.

FAW Hongqi had the highest among Chinese brands. It was followed by Changan, Chery and GAC Trumpchi, each of them scoring 749.

J.D. Power China said among the measures that comprised this study, luxury brands scored most in test-driving while for volume brands it was the delivery process.

The survey also finds that those who visit dealerships because of their affinity with the marque are quicker decision-makers, with 42.9 percent of them inking the deal within one week of their visit.

Another interesting finding is that those who are buying their second or third vehicles are different from first-time buyers. They are more concerned about brands but they are more likely to ask for bargains, according to the J.D.Power China survey.