Asia Leads Global Car Ownership Aspirations

Midori Matsuoka
Director, ACNielsen International Research
ACNielsen

Towards the end of 2004, ACNielsen conducted an online survey amongst consumers in 28 countries to measure current and future car ownership intentions.

Significant variations were observed between markets in the types of vehicles aspired to, and the factors driving these choices.

Aspiration Index (AI)
The aspiration index measures the relationship between current ownership levels and future intentions to purchase a vehicle, highlighting countries of high future demand. From the survey, three groupings emerged:

China is the most ‘aspiring’ country although potential car buyers still
represent a small portion of the population. The automotive market in China slowed a bit in 2004, reaching a temporary plateau, but will pick up again in 2005 as China moves comparatively rapidly from an underdeveloped market with limited brand/model choice to a mature replacement market with increased competition.

With three of the world’s four most populous countries heading the AI listing, it is clear that consumer demand for personalised transportation will drive global sales as the ability to buy rises to match aspirations.
In contrast, the US, many northern European countries and Japan have a low AI, reflecting higher levels of existing ownership and reduced potential for further growth.

Price Still Driving Purchases

Globally, price was the most frequently cited consideration in a new car
purchase, with performance and brand image/prestige coming a distant
second and third respectively.

Within Asia-Pacific, however, the emphasis placed on brand image/prestige was much greater in a number of markets (Taiwan, China and Indonesia), suggesting that manufacturers must also focus on brand building to drive sales.

Performance also figured much more highly in Asia-Pacific, compared with Europe and the US. In several north Asian markets (Korea, China and Japan) it was the most important reason for purchase.

The Sedan Remains the Most Popular Car Type, For Now…

The sedan remains the most popular car type owned on a global basis, with hatchbacks and SUVs placed second and third. Sedans are particularly popular in Taiwan and Thailand, where they account for nearly three-quarters of vehicles owned.

There are some market-specific variations from this general pattern; the
popularity of vans in Indonesia, convertibles in China and pick-ups/UTEs
in Thailand all reflecting local needs or tax classifications.

In the world’s largest auto market, the United States, SUVs are classified as trucks, and are thus exempt from the strict fuel consumption criteria applying to passenger cars. The larger size and flexibility of these vehicles suits the lifestyle aspirations of many Americans, to the point where even the once venerable Cadillac includes a number of SUVs in its range.

…But the Future Is Increasingly Versatile
While Sedans are also the most popular vehicle type for intended purchase in the next 12 months, the largest increase is seen in SUVs, chosen by 19% of intenders in the Asia-Pacific region, compared with 11% of vehicles currently owned. This increase is largely at the expense of hatchbacks (down 7% from owned to intended). In Asia, the definition of SUV is a bit ambiguous; aspirations towards SUVs was made by self-classification and would include AUV, MUV, Van and probably Mini-buses, depending on the country.

Overall, SUVs in Asia offer many of the key benefits of luxury cars – prestige/status, interior space and comfort, protection/safety. It can be considered “king of the road” through a combination of size, road presence (not afforded by other vehicles) and seat height. SUVs also offer the practical benefits of ground clearance and the ability to handle poor road conditions.

In the United States, the intention to buy SUVs is even higher, at 36%,
compared with 19% of vehicles currently owned, and overtaking Sedans in the process.

The SUV segment has undergone rapid growth in many markets over the past decade, with few manufacturers missing out on the opportunity to include one or more SUVs in their line up. As manufacturers develop more variants of wagon/SUV styles, such as Toyota’s Kluger or Ford’s Territory, it seems likely that this crossover format will continue to attract customers looking for versatility.

The picture is markedly different in Europe, where high fuel prices and
congestion make SUVs less attractive purchases. As a consequence, these vehicles only account for 3% of current vehicles and 5% of intended purchases, whereas station wagons are likely to account for one fifth of future purchases.

It will be interesting to see how these patterns develop in future surveys.

About the ACNielsen Online Study
The ACNielsen Online Study is conducted twice a year in 13 markets
in the Asia Pacific region. In October 2004, the survey was
expanded to include Vietnam (face-to-face), Europe and the US,
bringing the number of markets covered by the survey to 28,
interviewing 14,134 consumers.

The latest study was conducted over the period September 28 to
October 8 across the following markets: Australia, China, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand,
Philippines, Singapore, Taiwan, Thailand, Vietnam, Austria, and
Belgium.