This market research report presents a detailed segmentation of the passenger vehicle market in China by propulsion type (ICE and electric and hybrid) and by vehicle type (sedan and small cars, SUV and crossover, MPV, and luxury cars). The leading vendors in this market include BAIC, Dongfeng Motor, FAW, Geely, and SAIC.
Technavio’s market research analysts estimate the passenger vehicle market in China to grow at a CAGR of over 5% between 2016 and 2020. The low penetration of passenger cars and the high rate of migration to urban areas in the regio are the major factors driving the growth of the market. The increasing popularity of electric cars is likely to open up new business opportunities, thereby boosting the growth of the market during the forecast period. In 2015, the internal combustion engine (ICE) segment dominated the passenger vehicle market in China by accounting for a market share of over 97%. The preference for ICE vehicles amongst the population is expected to contribute to the growth of the market in the coming years.
The new market research report from Technavio presents a breakdown and analysis of the passenger vehicle segments by vehicle type.
“The segment focus approach is an ongoing trend in the market. Currently, SUV, electric vehicle, and luxury car segments are witnessing steady growth. The segmented nature of the market makes product portfolios key in maintaining a competitive edge in the highly fragmented Chinese automotive industry. Chinese original equipment manufacturers (OEMs) are likely to formulate growth strategies targeting high potential segments to gain more market share during the forecast period,” says Siddarth Jaiswal, Lead Analyst, Automotive, Technavio Research.
At present, the sedans and small car segments dominated the passenger vehicle market in China with a 50% share of the overall market. The impact of the economic slowdown is the key driver for the growth of this segment. Government-sponsored subsidies, the introduction of small cars at low prices, and the export of Chinese vehicles to the US and European markets are factors that are expected to reflect positively on the growth of the sedans and small car market in China by 2020.
The key vendors in the passenger vehicle market in China are BAIC, Dongfeng Motor, FAW, Geely, and SAIC. This market is extremely fragmented with the presence of many foreign and domestic players. It is primarily dominated by key players who collectively account for more than 62% of the total market share. Being the biggest market for passenger cars, several global original equipment manufacturers (OEMs) are entering the Chinese market owing to the high market demand. Moreover, the regional players are offering products at low prices to acquire more market shares and to increase their profit margins.
A more detailed analysis is available on the Technavio report, Passenger Vehicle Market in China 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
