Watch your steps, or you'll risk stumbling!

"Green" is a high priority in the China Auto Industry - the government is granting subsidies for environment friendly technology, and Chinese car makers are investing huge efforts to develop and launch alternative power trains in the market. That's certainly good news. Being set to become the largest auto market in the world brings along responsibilities, and to lead the fight against pollution is one of them.

What strikes me, though, is how much focus is put on the technological achievements - yes, Chinese car manufacturers have come a long way - but how little attention is seemingly laid on how to successfully market them. This is most astonishing since at the end of the day, consumers have to buy alternative engine powered vehicles, otherwise the entire "green" activities remain nothing else than a nice PR gig which barely justifies all the investments behind.

Then, what would make green technologies in China - in fact there are already quite a few market offers out there - more successful than they currently are?

A lower retail price, would probably be the most frequently heard answer. "Green" cars are significantly more expensive than cars with conventional technology, therefore potential buyers are scared off. While this argument may apply for international makes such as Toyota Prius, it does not really work for Chinese hybrid cars, which can be bought for less than half the price of a Prius. And still, the evaluation of the purchase price strongly depends on the perceived subsequent operating costs, as consumers in the United States impressively demonstrate: In times of high gasoline prices Toyota Prius hybrid models were sales hits, while with low prices at the pump, Prius hybrid cars are piling up at the dealerships.

Therefore, we may argue that overall speaking, to significantly impact "green" behaviour, the fuel prices in China tend to be too low.

But there is much more than that. Although car purchase decisions are more and more triggered by emotive gratifications, they are based on the satisfaction of rational value considerations: quality, safety, and vehicle performance. Even if the Chinese "green" cars are made affordable (by government subsidies and/or low purchase prices), consumers will not be convinced about their value as long as they cannot perceive good enough quality of workmanship, top notch safety and reliable technology. And as such, the credibility of Chinese brands as overall trustworthy car manufacturers is at stake in the first place.

In other words, to successfully sell Chinese powered "green" technology, much more efforts have to be undertaken to demonstrate the ability of Chinese manufacturers to conceive, produce and market commonly accepted and respected passenger cars with conventional power train technology!

In addition, pushing "green" offers too hard and too quickly will cut short the time for building up the necessary infrastructure, and hinder consumers in obtaining enough knowledge about the new technology, both necessary steps to build up consumer trust and confidence.

The car market in China has for a long time already become extremely competitive with market players racing for market shares and top positions. The run for the new alternative technologies has brought the race to a new level, and if you will, the contenders are like running up the stairs to reach the higher spot. I am inclined to shout at the Chinese participants: Control your pace, you may take two stairs at a time, but watch your steps - or you risk to stumbling!

Klaus Paur, Gasgoo's  columnist, is Regional Director Automotive for North Asia at TNS China who has over 20 years of experience in marketing and market research, 13 of which have been spent specialising in the automotive industry.