U.S. Consumers Cool to Impending Arrivals of Chinese, Indian Imports

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About 33% of prospective U.S. car buyers would consider purchasing an Indian- or Chinese-made vehicle, says Don DeVeaux, managing director of the GfK Automotive research firm, which recently conducted a study.

Chinese vehicles appeal to 38% of Americans contemplating buying a car, while Indian brands attract 30%, he says.

“When a relatively unknown brand enters the market, potential buyers are going to have some initial skepticism without a frame of reference into the company's history and differentiators from other brands.”

Quality and repair availability are crucial considerations for U.S. consumers thinking about buying a car. “Without an established history in the U.S., Chinese and Indian manufacturers need to overcome the lack of knowledge of their brands,” DeVeaux says.

However, 52% of Gen Y consumers – people born between the late 1970s and early 2000s –are open to purchasing Chinese cars and 41% say they would opt for an Indian brand.

However, the Chinese and Indian brands’ appeal plummets among Baby Boomers.

The GfK study says just 29% of Boomers would buy a Chinese-made car, while only 22% would select an Indian brand.

Korean brands took 15 years to become serious competitors in the U.S. market. GfK’s findings indicate Chinese and Indian auto makers need to earn acceptance in this market by making potential buyers comfortable with their brands more quickly than Korean manufacturers did.

“They must hit the ground running and communicate their story to potential buyers,” DeVeaux says. “They need to make consumers comfortable with their brands and secure their purchase decision by providing proof points for quality, customer support and technology.”

Respondents to the GfK survey are open to buying a U.S. brand by an overwhelming 95% mark. Three-quarters of those surveyed say they would consider buying a German or Japanese vehicle, while Korean brands only scored 49%.