Car makers pour advertising dollars into China

HONG KONG (Reuters) - Only about 6 percent of urban residents in China own a car but car makers see rapid growth in coming years as incomes rise, and they spent US$1.9 billion (953 million pounds) on advertising in China last year, a survey by The Nielsen Company shows.

The estimate for private car ownership in China was based on a survey of 70,000 people in China's 30 biggest cities. The Nielsen Company estimated there were 3.8 million car owners across those cities.

The country has some way to go to catch up with the United States, which by The Nielsen Company's calculation, is the world's biggest private car market with an estimated 190 million car owners, or 89 percent of the population over 18.

China accounted for 47 percent of total advertising expenditure by car makers and related companies in Asia-Pacific ex-Japan last year. Altogether they spent US$4 billion, led by Japan's Toyota Motor Corp, which overtook General Motors Corp as the world's biggest car maker in the first quarter.

Toyota spent US$292 million on advertising in the region, followed by South Korea's Hyundai Motor Co with US$197 million and Japanese rival Nissan Motor Co with US$154 million, according to The Nielsen Company, formerly known as ACNielsen.

Like China, India is expected to see fast growth in demand for cars as a result of rapid economic expansion. According to The Nielsen Company, around 9 percent of Indians over 18 in major cities, or 5.8 million people, own a car. Advertising by car makers in India last year totalled US$578 million, the survey shows.