New buyers opt for thriftier cars, says Nielsen

SHANGHAI: Chinese people have slashed their budgets for buying automobiles amid decreasing consumer confidence and a bitter economy, but the diversified demand for private vehicles will continue to propel the market on a robust growth path, according to a recent survey from global information provider Nielsen.

The survey of 4,400 interviewees conducted from early October to late March showed that 55 percent people decided to buy cars priced below 180,000 yuan after the economic crisis broke out, 8 percentage points higher than before the crisis. In comparison, those who intended to purchase pricey vehicles above 300,000 yuan dropped 10 percentage points from about six months ago.

"Consumers are more rational and thriftier on vehicle purchases. Over 30 percent of the respondents said they will adjust their budgets for new car buys, and give more attention to fuel cost," said Georgia Zhuang, associate director, China consumer research, Nielsen, yesterday.