GLOBAL automakers are scrambling to meet the demands of China’s young urban professionals, who want a car that makes them stand out, yet don’t always have the money to splurge on a top-end model.

    After nearly two decades of frenzied growth driven mainly by the very wealthy, China’s auto market is maturing, yet remains ferociously competitive with manufacturers having to react quickly to shifting consumer trends.

    Today’s emerging buyer has more modest financial means, yet aspires to own a car that’s “different.”

    People like Zhou Wenxi, a 32-year-old Shanghai cram-school owner, and Guo Yetao, 23, a software salesman from Hangzhou, are fuelling two trends: hot demand for smaller crossover sport utility vehicles like Ford Motor Co.’s EcoSport; and more interest in affordable, entry-level luxury cars like the Audi A3.

    There is a potential “seismic shift” in the influence these young urban professionals will have on China’s auto market, says Yale Zhang, head of Automotive Foresight, a Shanghai-based consultant.

    “There are different tiers of young urban professionals. Some are rich and a bit older, others are more normal,” he said. “But they tend to be similar in two traits: they want to be different, and don’t necessarily have an endless amount of money to throw around.”

    Guo, the Hangzhou salesman, recently took out a loan to buy an EcoSport crossover for 115,800 yuan (US$18,700), while Liu Yao, a 22-year-old office worker in Huaibei in Anhui Province, borrowed from his parents to buy a Haval M4 mini-crossover from Great Wall Motor Co. Ltd. for 60,000 yuan.

    Among the less well-off young urbanites, the EcoSport, at 94,800 yuan, has been a volume seller for Ford since its launch early last year. Sales last year were 59,680, and reached 17,392 in January-March of this year.

    At this week’s Beijing auto show, carmakers including PSA Peugeot Citroen, Hyundai Motor Co. and local firm Haima Automobile Group will unveil new mini-SUV models. Chevrolet launched its Trax, a tiny crossover, in China earlier this month.

    According to IHS, there were just five subcompact SUV models on sale in China in 2010. By 2020, there will be almost two dozen, driving up sales of this segment to more than 880,000 from 345,650 last year.

    Other young professionals, maybe small business owners or higher-earners, are setting their sights higher.

    Zhou, the cram-school owner, paid about 280,000 yuan for a red Audi A3 compact sedan. “Audis aren’t flashy, and the A3 is entry-level, so the price isn’t outrageous,” she said.

    Manufacturers will show off several more affordable, entry-level luxury cars at the Beijing show.

    A crucial shift for them will be to produce more of these models in China, which would cut the price as they would not be subject to hefty import duty and other taxes.

    Volume sales in this premium compact car sector have trebled to more than 52,000 in the past four years, according to IHS data, so remain, for now, a tiny niche in China’s total passenger car market of close to 16.8 million.(SD-Agencies)