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China has the youngest premium car buyers in the world, and their tech-savvy demand for "connected cars" -- coupled with Communist regulations -- is driving international automakers into the arms of the country's Internet giants.
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Growth is slowing and competition intensifying in the world's number one car market, but it also boasts Mercedes Benz buyers with an average age of 37, and Audi's customers even younger at 36. In contrast, the average Mercedes buyer in the US was over 54, according to IHS Automotive.
China's "Internet savvy" cohort is the youngest premium customer group in the world, Hubertus Troska, China chief for Mercedes' parent Daimler, said at the Beijing Auto Show this week."We really want to be at the forefront of connectivity and telematics in this country, so we're going with the best technology that we have,” he added.
Automakers are racing to offer "connected" car services, which include in-car internet access, entertainment systems, and easy integration with smartphones, traffic lights, and other vehicles.
As many as 60 percent of Chinese drivers would switch car brands solely in order to have complete access to data and applications inside their vehicle, according to consultancy McKinsey, compared to only 20 percent of Germans.
Fellow domestic giant Alibaba, which in 2014 purchased Chinese interactive mapping and navigation firm Autonavi for US$1.5 billion, is collaborating with China's leading auto manufacturer SAIC.
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