Chinese auto makers have made great progress in improving product quality, but customer satisfaction with the design and performance of Chinese made cars has not greatly improved. That is the conclusion of market researcher J.D. Power.

A survey of 12 thousand new car owners in 28 cities in China conducted by J.D. Power revealed that the quality of Chinese made cars has improved greatly. This was measured by a decrease in malfunctions to 24 in every 100 new cars over the past three years.

But car buyers' impressions of the overall attractiveness of home brand cars remains unchanged. Engine performance, interior space, design and gas efficiency produced less satisfaction in 2009 than a year ago.

In addition, rising concerns of an energy shortage have added to car buyers' expectations of compact cars and alternative energy cars.

Gong Bingbing, chief analyst, Chinaauto.net, said, "From our website, we can see that netizens are showing an increasing interest in new energy cars. As the price of new energy cars gradually comes down, more car buyers will be able to afford them. The market looks promising."

Observers say that as China's auto production increases, so will customer expectations. The auto industry is also a highly innovative sector. Other than quality, design and branding are also key to winning over increasingly sophisticated customers.