BEIJING, July 1, 2015 /PRNewswire/ -- While not all the data from the latest survey was unanimously positive, and car buyers remain cautious, a significant rise in car purchase expectations suggests car sales will find some support over the coming months. That increase in optimism pushed the Car Purchase Indicator back near the level recorded at the end of the first quarter, with sentiment now sitting just below its long term average.
The June edition of the survey also revealed that Volkswagen extended its lead as the brand of choice among Chinese consumers while the best performing domestic brand, BYD, also extended its share. Consistent with the continued softening in economic conditions, high-end brands like BMW and Mercedes lost ground, as did SUVs as a preferred car type.
The Car Purchase Sentiment Indicator rose to 87.2 in June from 86.7 in May, the fifth increase so far in 2015. The marginal gain in the indicator, which is made up of two components, was led by an increase in the proportion of respondents who thought that the car purchase environment improved, as measured by the Car Purchase Expectations Indicator. This component edged up 3.3% to 100.1 in June, the highest since August 2014 as consumers revised up their outlook for personal finances and the wider business environment, as seen in the Westpac MNI Consumer Sentiment Survey. The other component that makes up the main Car Purchase Sentiment Indicator, the Price of Gasoline component, was up 1.8% to 125.7 in June.
Car ownership levels dropped slightly over the month to 39% in June from 41.5% in May, but remained elevated by historical standards. Plans to buy a car were similarly under pressure, falling to 16.2% in June from 18.6% in May, although the upward trend that has emerged over the last few years remains intact.
Chinese families shifted their budget preferences towards the middle ranges in June, and continued to opt away from the cheapest options. The largest percentage of responses was again in the mid range of CNY 100,000 - CNY 140,000 while the second most expensive tier, CNY 150,000 - CNY 190,000 commanded the next highest proportion of responses.
For more information:
Naomi Pickens
Media Relations
Deutsche Borse
+1-212-669-6459
naomi.pickens@deutsche-boerse.com
Editorial content:
Philip Uglow
Chief Economist
MNI Indicators
@philip_uglow1
About MNI Indicators
MNI Indicators specialises in producing business and consumer surveys designed to present an advance picture of the economic landscape and highlight changing trends in business and consumer activity. The timely reports explore attitudes, perspectives and sentiment across the globe, including China, India and Russia. Alongside MNI Indicators' core focus on consumer and business surveys in emerging markets, MNI Indicators produces the renowned Chicago Business Barometer (Chicago PMI), a key leading indicator of the US economy. MNI Indicators is part of MNI, a leading provider of news and intelligence and a wholly owned subsidiary of Deutsche Borse AG, one of the largest worldwide exchange organisations.
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Notes to Editors
The MNI China Auto Purchase Sentiment Report is derived mainly from data collected in the Westpac MNI China Consumer Sentiment Survey, a monthly survey of consumers across China. Further additional questions directly relating to the auto sector are also asked to supplement the dataset. Data is collected via telephone interviews and at least 1,000 interviews are conducted each month with respondents in 30 first, second and third tier cities aged between 18 and 64. Some series date back to 2007 while other more detailed data begins in 2012. Our publication includes a complete dataset that is stratified by age, gender, income, region and tier 1 city.
The MNI China Auto Purchase Sentiment survey is published at 9:45 A.M. Beijing time on the first Wednesday of every month.