Smart features drive up Chinese carmakers

Smart onboard functions have enabled Chinese automotive startups to make foray into high-end markets and compete with established global giants, said a senior J.D. Power executive.

"Smart NEVs have won the heart of Chinese car buyers," said Su Jun, president of J.D. Power China, at a forum held in Hangzhou, Zhejiang province, on Thursday.

"In other words, smart functions have proven to be the driving force for Chinese carmakers to catch up and even overtake global rivals," he said.

Smart cockpit technologies are more widely accepted by new vehicle owners in China and are a key factor in their vehicle-buying decisions, according to the 2024 China Tech Experience Index Study, whose findings were released earlier this month.

Besides the market, J.D. Power has also found changes in car buyers, especially those born after 1995, who are wooed by dealers as they account for a big proportion of new car buyers.

One important finding is that they value a fast response. A previous J.D. Power study reveals that their overall satisfaction can hit 825 out of a scale of 1,000 when a dealer contacts them within an hour of leaving their contact information.

The score would drop to 792 if it takes more than three hours for a dealer to reach them.

The car buyers also want efficiency when they visit a dealership. Immediate reception upon entering the store and during a test drive boosts satisfaction, said J.D. Power.

Such insights and findings are crucial for carmakers as the vehicle sector is becoming increasingly competitive.

Retail sales of new energy vehicles accounted for 51.1 percent of total passenger vehicle deliveries in China last month, outnumbering conventional internal combustion engine vehicles for the first time, according to the China Passenger Car Association.

Of the 1.72 million passenger vehicles sold in July, 878,000 units were pure electric vehicles, plug-in hybrids and range-extended vehicles, up 36.9 percent year-on-year.

The 51.1 percent proportion marked a hike of 15 percentage points compared with the same month of 2023, said the CPCA.