Chinese car owners have far less brand loyalty than Western buyers – three-quarters plan to change brands with their next purchase according to research by The Boston Consulting Group.Daimler opened a research and development centre in Beijing in November to fine tune its Mercedes Benz brand to Chinese tastes.  The average age of the brand’s customers in China is 36, two decades younger than in Germany, and they demand features such as in-car internet access and advanced entertainment systems.  Hubertus Troska, Daimler’s China head, said he expected the Chinese market to become Mercedes Benz’s largest within one or two years.  Troska also told Reuters that the car maker is considering a new super premium car, above the S-level, specifically targeted at the Chinese consumer.

Jaguar Land Rover opts for China

Meanwhile Jaguar Land Rover opened its first overseas manufacturing facility in the Chinese city of Changshu in October.  The plant is jointly operated with the Chinese manufacturer Cherry Automobile Company.  China is now the brand’s biggest market, and the plant is expected to manufacture 130,000 vehicles per year by 2016.  The first model produced will be the Range Rover Evoque. Around 57 percent of Chinese owners of foreign premium cars plan to switch brands at the next purchase, and nearly 90 percent of foreign volume-brand owners who are trading up said they are likely to buy an Audi, BMW, or Mercedes-Benz, according to Boston Consulting’s report.