2015-03-23-Bain-China_New_Mobility_Study_2015_16页_2mb

China New Mobility Study Summary (2015)

Core Content

The China New Mobility Study (2015) explores the evolving attitudes of Chinese car owners and non-owners towards car ownership and new mobility solutions in the context of rapid urbanization and changing urban mobility dynamics. It highlights how traditional car ownership is becoming less attractive due to deteriorating driving conditions, stricter regulations, and rising costs, while new mobility services are gaining traction.

Main Trends in China's Urban Mobility Landscape

1. Fast Urbanization

   • Drives population growth, car parc expansion, and longer commuting distances and times in mega-cities.

2. Deteriorating Driving Conditions

   • Traffic congestion, road safety issues, and lack of affordable parking negatively impact the driving experience.

3. Increasing Environmental Pressures

   • Air quality concerns raise awareness of the environmental impact of cars, increasing openness to alternative mobility solutions.

4. Tightening Regulations

   • Governments are implementing rules to control car ownership, restrict road access, and promote low-emission vehicles.

5. Improving Public Transport

   • Major infrastructure investments have enhanced the coverage, reliability, and comfort of rail and bus systems.

6. Fast Penetration of New Technologies

   • Mobile applications for mobility planning, booking, and enhancement are growing in popularity.

Key Findings

• Car Ownership is Losing Appeal

  • In China's mega-cities, car owners are rethinking the value of car ownership due to rising costs, inconvenience, and safety concerns.
  • Traffic congestion and higher gasoline prices are the two major factors that could lead people to stop owning or buying a car.

• Public Transportation and New Mobility Solutions are Gaining Interest

  • Chinese consumers show a strong interest in public transport and new mobility solutions that meet local needs.
  • A significant portion of respondents believe that new mobility concepts will become a significant part of their urban mobility in the next three years.

• Six Customer Segments Identified

  • These segments vary in their interest in new mobility solutions and their perception of car ownership:
    • Economic Traveler (37% of car owners; 39% of non-car owners): Least interested in new mobility, prefers public transport.
    • Switcher (22% of car owners; 20% of non-car owners): Relatively high usage of their own car, high awareness and willingness to try new mobility.
    • Car-averse Consumer (12% of car owners; 19% of non-car owners): Lowest income, least likely to use cars or new mobility.
    • Smart Traveler (12% of car owners; 8% of non-car owners): Relatively high income and usage of new mobility.
    • Convenience-focused Traveler (10% of car owners and non-car owners): High usage of both private and public mobility, high willingness to try new solutions.
    • Status Seeker (7% of car owners; 4% of non-car owners): High income, strong perception of cars as a status symbol, highest willingness to try new mobility.

• Risk of Moving Away from Car Ownership

  • The Economic Traveler, Convenience-focused Traveler, and Switcher segments are most likely to move away from car ownership if conditions continue to deteriorate.

Opportunities for OEMs

• OEMs face a challenge in balancing the development of new mobility solutions with the protection of their core automotive business.
• To address this, OEMs can:
  • Partner with local governments to solve urban mobility problems.
  • Develop loyalty programs targeting at-risk segments.
  • Propose flexible solutions such as leasing to attract new customers.
• OEMs also have a unique opportunity to tailor mobility solutions to the Chinese market, considering local infrastructure constraints and consumer preferences for safety and flexibility.

Conclusion

The study underscores a significant shift in consumer behavior and preferences, with a growing preference for safe, on-time, flexible, and reliable mobility. As urbanization and environmental concerns continue, OEMs must adapt to these changes and innovate to remain relevant in the evolving mobility landscape.

Key Figures and Data

• 10% to 30% of current car owners would consider giving up their cars if traffic conditions worsen or gas prices rise sharply.
• 2,100+ respondents from six Tier-1 and Tier-2 cities were surveyed.
• Car sharing is still unfamiliar to many Chinese consumers, with low awareness levels.
• Public transport, car rental, and taxi services are the most commonly cited new mobility solutions that consumers are willing to adopt.

About the Authors

• Raymond Tsang and Pierre-Henri Boutot are partners at Bain & Company's Greater China office, leading the Industrial Goods and Services practices.
• Contact details are provided for further inquiries.

Acknowledgments

• The authors thank Jieqi Zhou from Bain & Company for her contributions to the study.

About Bain & Company

• A global management consulting firm known for delivering results through strategic and operational insights.
• Offers expertise across strategy, operations, technology, organization, private equity, and mergers and acquisitions.
• Has a strong track record of client success, with clients outperforming the stock market 4 to 1.