Chinese car buyers getting younger

The average age of first time car buyers in China is falling and with a more cash strapped wallet for the younger generation, many are looking to purchase a smaller car. Global automakers are paying attention to this trend, and many are showing off small cars at the ongoing Shanghai Auto Show.

The Mini has been an iconic car almost since British Automotive launched the vehicle in the late 1950s. The brand, which is now owned by BMW, is showing off four new models, including the Clubman and Countryman at Shanghai Auto Show. 20,000 Minis were sold in China last year, and the company is hoping that younger buyers will help sales grow. It's not alone in that thinking, with Volkswagen and Toyota among the foreign companies displaying compact cars at the show.

The average age of Chinese car buyers is now around 30. That's 6 years younger than a decade ago. Growing concerns about environmental and traffic pressure are also influencing what people buy.

An online survey suggests 30 percent of car owners plan to buy a smaller car next time around, and about 40 percent want to buy small cars as their first vehicle. China has offered incentives to buy small cars since 2006, and subsidized research into low-emission technology. But small cars still only make up 10 percent of China's market share, even as they account for 50 percent in mature markets such as Japan and Europe.