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October 2003
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SPECIAL REPORT

 

Finding the right Auto "Nanny"

By staff reporter LUO YUANJUN


More people to make trips in their own cars.

ON her way to the railway station to meet a friend, Miss Sun was understandably alarmed when thick smoke began pouring out from under the hood of her car. At a loss as to what to do, she called her boyfriend, but he was equally nonplussed. Eventually two mechanics were called to the scene, and it transpired that the water tank was empty. Like the majority of China's first private car owners, Sun's motoring know-how, learned from driving courses, is limited to actual driving skills and traffic codes. "I want to keep my car in good running order, but don't know how, so it's great if an auto "nanny" can come to my aid when necessary," says Sun. Automobile clubs fill this requirement, and represent a burgeoning trade.

The Way to Prosperity

China's first auto club, the Continental Automobile Association, was established in 1995. "In the first three years we input 5 million yuan, but made no profit," recalls club president Gao Yang. Today the club has more than 150,000 members -- 15 percent of the total automobile ownership in Beijing. Gao attributes the CAA's success to his application of the service concept he learnt abroad: that of developing the appropriate mechanism to ensure protection of customers' interests.

In line with this principle, the CAA has made three bold innovations: it runs as a community service rather than as a business through incorporation of low and non-profit making items into its service; it attends to the driver's as well as to the car's problems; and offers members the best in service and value for money.

According to Peter Steele, acting CEO of the NRMA (National Road and Motorist Association) Motoring & Services, the largest auto club in Australia, despite being in its infancy, China's auto club sector shows great promise. In 1999 the NRMA Motoring & Services and the CAA co-invested into a joint-venture, the first of its kind in China.

Another club, the Off-Roader Club, organizes weekly cross-country rallies and so appeals to drivers that enjoy a motoring challenge. In order to expand its business scope, in 1999 the club established a cross-country vehicle refitting service, offering technical consultation and service for cross-country rallies. Since its establishment it has sponsored annual expeditions to Tibet, but these may soon come to an end owing to a shortage of funds.

In 2001 the Off-Roader Club represented China in its first participation in the International Rainforest Challenge in Malaysia, the world's most rugged and challenging 4x4 cross-country rally. The event won the club an international reputation.

"It is hard for auto clubs starting out, and even harder for them to keep going, but prospects are nevertheless optimistic," predicts Li Chunsan, vice secretary general of the Beijing Association of Auto and Motorcycle Sports. Li believes an auto club's foremost priorities are roadside repair services, protection of drivers' rights and interests, and provision of sporting activities.

His opinion accords with a survey by the China Consumers' Association taken in 20 Chinese cities which showed that after sales service is a leading factor in family car purchase, second only to price. According to a forecast by the Development Research Center of the State Council, China's automobile ownership will hit 71.67 million by 2010 -- an annual growth of 15.2 percent -- among which sedans will account for 20.7 million at an annual 16.3 percent growth. An auto club boom is therefore assured.

Finding Fellow Enthusiasts

The latest urban Chinese craze, automobiles are an increasingly vibrant aspect of current fashion and lifestyle. A car brings pleasure as well as convenience, so for China's motorists an auto club is a source of technical aid and also like-minded acquaintances.

Mr. Jia runs a small business, and joined an auto club in the expectation of meeting potential customers. This is a common motive for taking out auto club membership, as it is for joining a golf club.

To Miss Huang, the group activities staged by her club are its best feature. "I am no longer at a loose end at weekends, and have made many new friends." Her club arranges regular parties and trips for its members, promoting a sense of camaraderie.

There are auto clubs that regularly participate in good works. Off-Roader, for example, has through its members made several donations towards helping impoverished school children and natural disaster victims.

China's auto clubs nevertheless fall far short of public expectations. Mr. William from the U.K. attributes this to a shortage of qualified and experienced staff in the field. "They may come up with a great idea, but have difficulty making it work. A large number of club managers seem to lack planning and organizational experience." Mr. Gao is more critical: "Why have so many auto club shut down? Because their service is seriously deficient. If they cannot offer reliable and qualified service, why open in the first place?"

During rush hour in Shanghai, at least three people stand on each square meter of bus floor, whereas a private car affords a whole 3 square meters on wheels -- a different world. Auto clubs are expected to make life in the car world better and safer.

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