The Energy Challenge: With First Car, A New Life In China

SHUANG MIAO, China — Li Rifu packed a lot of emotional freight into his first car. Mr. Li, a 46-year-old farmer and watch repairman, and his wife secretly hoped a car would improve the odds of their sons, then 22 and 24, of finding girlfriends, marrying and producing grandchildren.

When Li Rifu was shopping for a car in September 2006, he tried the back seat of a Geely King Kong at a dealer in Taizhou.

Articles in this series will periodically examine the ways in which the world is, and is not, moving toward a more energy efficient, environmentally benign future.

A year and a half later, the plan seems to be working. After Mr. Li purchased his Geely King Kong for the equivalent of $9,000, both sons quickly found girlfriends. His older son has already married, after a short courtship that included a lot of cruising in the family car, where the couple stole their first furtive kisses.

“It’s more enclosed, more clandestine,” said Li Fengyang, Mr. Li’s elder son, during a recent family dinner, as his bride blushed deeply.

Western attention to China’s growing appetite for automobiles usually focuses on its link to mounting dependence on foreign oil, escalating demand on natural resources like iron ore, and increasing emissions of global warming gases.

But millions of Chinese families, like millions of American families, do not make those connections. For them, a car is something both simpler and more complicated.

J. D. Power & Associates calculates that four-fifths of all new cars sold in China are bought by people who have never bought a car before — not even a used car. That number has remained at that level for each of the last four years. By contrast, less than a tenth of new cars in the United States are purchased by people who have never bought a new car before, and fewer than 1 percent of all new cars are sold to people who have never bought a new or used car before.

China’s explosive growth in first-time buyers is the driving force behind the country’s record car sales, up more than eightfold since 2000. It is the reason China just passed Japan to become the world’s second-largest car market, behind the United States.

One change in Chinese attitudes is already clear and likely to have broad implications worldwide: even first-time buyers are becoming more sophisticated and want better cars.

China’s domestic carmakers like Geely and Chery, once feared by Detroit and European automakers as eventual exporters to Western markets, have watched their sales gain modestly, stagnate or drop in the last year — even while the overall Chinese market has continued to grow roughly 20 percent a year.

The beneficiaries have been the joint ventures of multinationals that sell cars here that are designed overseas, like the Buick Excelle, Volkswagen Jetta and Toyota Camry. Practically every auto expert had expected the multinationals to lose market share rapidly to low-cost domestic automakers.

Instead, Chinese car buyers, including first-time buyers, have become more discriminating about the comfort, styling and reliability of the cars they buy. As a result, instead of planning to conquer overseas markets, local manufacturers are having to redouble their efforts in this market.

“Customers are moving up, they want the bigger, more established brands,” said Michael Dunne, the managing director for China at J. D. Power. “They’d rather wait, save and buy higher on the ladder instead of buying a smaller car.”

Back in the fall of 2006, the Li family did not want to wait, especially Mr. Li.

When the Li family bought their car, they agreed to extensive interviews with each family member in Shuang Miao, a rural village in east-central China’s Zhejiang Province. They later agreed to follow-up telephone interviews over the last year and a half and then a long family dinner in Shuang Miao last week to review their experience as first-time car owners. What emerges is a portrait of the rapidly expanding role of cars in the fast-changing ways in which China’s people socialize, marry, raise families and, possibly, die.

Li Rifu was so excited on the day that he bought his first car in September 2006 that he woke before dawn. He fixed breakfast for his wife and two grown sons, then climbed on his white motorcycle for a short trip he had been anticipating for many years.

Mr. Li had spent most of his life here in his ancestral farm village, nestled at the base of a steep hill. The embodiment of China’s version of the American dream, he is largely self-taught. He learned to fix watches, and got a job as a foreman in a coal mine in nearby Anhui Province by fixing the mine owner’s watch. After saving some money, he came home to start a successful business that now employs five peasants raising flowers for landscapers.

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