Big data reveals trends in Chinese auto market

Want China Times, Xinhua 2014-04-28

Cars on display at the Beijing Auto Show, April 26. (Photo/Xinhua)

Many cars at the ongoing Beijing Auto Show can momentarily seize the attention of visitors, but it is difficult to tell what models are in fact favored by consumers.

A new report based on big-data technology, however, discloses some clues into the world's largest auto market.

Prior to the opening of the auto show, Chinese internet search giant Baidu issued a report on the features and demands of car buyers in the country, analyzing massive search data generated by the 600-million-plus internet users over the past year.

The report continues to be upgraded via a real-time feed of search inquiries related to the show, which kicked off on April 21 and will conclude on April 29.

One finding that may be of interest to foreign investors is that the number of search queries for "imported cars" increased slightly year on year, up to 26.1%, although domestic cars still dominate the current vehicle market in China.

According to real-time results generated by the Baidu Index, searchers of imported cars are mainly young people under 30 years old. Another surprising finding shows that 42.6% of web users searching for cars come from the fourth-tier, or very small cities, and the number is almost three times that from first-tier cities like Beijing and Shanghai, which have rolled out car-purchase restriction policies to tackle traffic congestion and air pollution.

Price-sensitive Chinese consumers are beginning to pay more attention to the car's comfort and functions, as more than 50% of search queries are related to SUVs or compact cars, according to the report.

The report also offers a list of popular search keywords, including "most popular new models," "new-energy cars," "Top 10 traffic violations," and hot issues related to car consumption.

Although the data-based report seems only to include web users, it also reflects some changes and habits of Chinese car buyers. "It is becoming very important for people to get information about cars online, especially in cities with very few test-drive opportunities," said one netizen.

An analyst told Xinhua that the report may invoke a revolution in the auto industry, indicating that search engine marketing is prevailing.

It is not the first time that Baidu has used big data to launch hot issue discussions. In February, it applied the real-time result to trace human migration during the Chinese Spring Festival travel rush and made a similar quantitative report on the most popular issues during the annual political sessions in March.

Baidu c-founder and CEO Robin Li said at the sessions that the internet is accelerating the transformation of traditional industries towards higher efficiency.

Zhang Yi, CEO of internet consulting company iiMedia Research, said the report is not a piece of pioneering work as many conventional industries have begun to make use of big data. "What I am concerned more is how to use big data to solve the problem that people face every day," said Zhang, who added that internet giants should develop new technology to tell people about traffic conditions and offer drivers smart suggestions.