Innovation to keep carmakers ticking

"The desire for a coupe is mostly from those with a budget beyond 300,000 yuan, so when developing coupe, it needs to be high-end in order to win the hearts of those who are aspiring for a lifestyle of speed and fashion," Yu explained.

Tech innovation

The joint study by CAAM and Nielsen revealed a welcoming attitude toward intelligent vehicle systems as nearly 40 percent of Chinese consumers aspire to own a "connected car".

Luxury car sales keep foot on accelerator

Auto industry gets geared up for expected tech revolution

Among the 42 percent of those who have telematics in their vehicle, a rear-view camera, large touch screen, online news and Bluetooth connection are all frequently used functions.

"Besides the traditional telematics, we see a growing need from automotive consumers for Internet-based functions including online news, music and navigation. Smartphones will play a dynamic role in future connected cars," said Yu.

The survey shows 63 percent of Chinese consumers hope to connect telematics systems with their smartphones.

Increased driving safety, ease of navigation, 3G Wi-Fi hotspot connectivity and voice control are the most desirable smartphone functions for telematics in the vehicle, said respondents

"Given the high and still increasing interest in and aspirations for connected cars among Chinese consumers, manufactures who are putting efforts into the development of vehicle telematics have a better chance to succeed in the big data era," said Dong.

Savvy marketing

In addition to online auto forums and official micro-blogs by brands, WeChat has become one of the most trusted car-related information channels for car buyers thanks to the high number of smartphones across the country.

"The widespread use of smartphones has changed Chinese consumer behavior around car purchases, and likely the payment model for car trades as well," said Yu. "Both smartphone apps and WeChat provide user access to multiple car-purchase platforms that to some extent have further stimulate development of e-commerce in the automobile industry," said Yu.