Young buyers impact the recovering car market: Newspaper

There are some changes as the car market recovers, such as young potential buyers' consumption preferences have become the vane, small and medium-sized car dealers will become a new distribution channel in China and domestic car brands account for half of the market to young buyers, China Youth Daily reported on Tuesday.

The number of small and medium-sized car dealers accounting for 42.7 percent of the total in lower-tier city markets have become an important sales channel and the figure of the traditional "4S" (sale, spare part, service and survey) store is 50.8 percent, the newspaper said, citing a data analysis report.

Currently, the number of small and medium-sized car dealers reached 100,000 in China, the newspaper said, citing the China Automobile Dealers Association.

Based on word of mouth and unrestricted by the franchise system, the sales approach of small and medium-sized car dealers is more flexible, and has a high conversion rate, which means they are more suitable for markets in the lower-tier cities, such as towns and villages.

The potential buyer in the lower-tier city markets is younger with purchasing power, a strong sense of national pride and a propensity to shop around. The monthly income of more than 30 percent of the young potential buyers surpassed 10,000 yuan ($1,543), the newspaper said. Moreover, domestic car brands accounted for 50 percent of what the young potential buyers want to purchase.

As a supporting policy to promote the new energy car in countryside implementation, and the growing popularity of charging piles, consumption potential of the new energy car will be gradually stimulated in the lower-tier city markets, and the new energy car market has room the grow, the newspaper said.