Table of Contents
Introduction
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- Definition
- Report structure
- Methodology
- Abbreviations
Executive Summary
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- The market
- The forecast for the new car market
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- Figure 1: Forecast – volume sales of new cars, China ('000 vehicles), 2008-18
- Figure 2: Forecast – volume sales of new passenger cars, China ('000 vehicles), 2008-18
- Encouraging signs for 2013 new car sales growth, but difficulties persist
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- Figure 3: Car sales, China (‘000 vehicles), 2008-13
- The basic passenger car still dominates, while SUVs grow fast
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- Figure 4: Car sales, by car types, in China, 2008-13
- Imports and exports move towards balance
- Market drivers
- Growth barriers
- Companies and brands
- JV brands flourishing in China with Shanghai Volkswagen leading
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- Figure 5: Market share of top 10 passenger car manufacturers, by passenger car sales, 2010-13
- German brands continuously grow, while Japanese brands and Chinese self-owned brands are losing share
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- Figure 6: Market share of passenger cars, China, by car origins, 2010-13
- The consumer
- Consumer segmentation
- Car ownership and intention to buy
- Shares of car brand and model
- Consideration factors for buying
- Brand image test
- Attitudes towards car purchasing
- Key issue – Opportunity exists to capture brand switching and improve consumer retention
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- Figure 7: Additional attitudes towards car purchasing process, August 2013
- Key issue – Evolving preferences of Chinese luxury car buyers
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- Figure 8: Attitudes towards the car purchasing process, August 2013
- Key issue – Hybrid cars – the path towards the alternative-energy future
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- Figure 9: Evolution of car technology in terms of energy saving, 2013
The Market
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- Key points
- The China car market
- Steady growth for China car market in recent years
- Encouraging signs for 2013 new car sales – but difficulties persist
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- Figure 10: Car sales, China (‘000 vehicles), 2008-13
- Market shares
- Basic passenger cars still dominate while SUVs grow fast
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- Figure 11: Car sales, by car type, in China, 2008-13
- Imports and exports move towards balance
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- Figure 12: Imports and exports of cars, China (‘000 vehicles), 2008-13
- Market drivers
- Economic growth continues
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- Figure 13: GDP and growth rates, China, 2008-12
- Income rises in both urban and rural
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- Figure 14: Annual per capita net income and actual growth rate of urban and rural residents in China (RMB), 2008-12
- Urbanisation
- Still room for car parc growth
- Infrastructure improvement for motorways
- Change of car ownership dynamics also provides opportunity
- Market barriers
- Cost of maintaining cars
- City congestion and traffic pressure
- Restriction on licence plates
- Potential structural excess production
- A difficult time for car dealers
- Car exhaust emissions impact on environment
- Forecast
- New cars
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- Figure 15: Forecast – volume sales of new cars, China ('000 vehicles), 2008-18
- Figure 16: Forecast – volume sales of new passenger cars, China ('000 vehicles), 2008-18
- Used cars
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- Figure 17: Forecast – volume sales of used cars, China ('000 vehicles), 2008-18
Companies and Brands
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- Key points
- Company share
- Shanghai Volkswagen leads the China car market
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- Figure 18: Market share of top 10 passenger car manufacturers, by passenger car sales, 2010-13
- JV brands enjoy the privilege
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- Figure 19: Major JVs for passenger cars, China, 2013
- German brands continuously grow: Japanese brands and Chinese self-owned brands are losing share
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- Figure 20: Market share of passenger car, China, by car marking origins, 2010-13
- Company profile
- Luxury
- BMW Group
- Mercedes-Benz
- Mid-range
- General Motors
- Volkswagen Group
- Toyota
- Hyundai
- Domestic
- Great Wall
- Chery
- BYD
- Geely
The Consumer – Consumer Segmentation
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- Key points
- Consumer segmentation
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- Figure 21: Target groups, August 2013
- Image & Status Awarers (18% of the sample)
- Adventurers (18% of the sample)
- Traditional Safety & Status Seekers (24% of the sample)
- Sceptics (18% of the sample)
- Practical Users (22% of the sample)
The Consumer – Car Ownership and Intention to Buy
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- Key points
- Close to half of respondents own their first car currently
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- Figure 22: Individual car ownership status, August 2013
- Young singles and people from lower tier cities show a stronger buying intention
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- Figure 23: Car purchasing intentions, by demographics, August 2013
The Consumer – Shares of Car Brand and Model
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- Key points
- German brands lead the current main car ownership…
- …and they have strong future prospects as the future buying intentions grow further
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- Figure 24: Car marking origins, by previous ownership, current ownership, and future buying intention, August 2013
- Current German and Japanese brand owners are more likely to be higher income earners
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- Figure 25: Car brand, by current ownership and demographics, August 2013
- Significant shift from the past to choose Audi as the current car
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- Figure 26: Car marking origins, by previous ownership, current ownership, and future buying intention, August 2013
- Trading up is evident in the China car market
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- Figure 27: Price range, by previous ownership, current ownership, and future buying intention, August 2013
- SUVs demonstrate significant future growth potential
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- Figure 28: Car body type, by previous ownership, current ownership, and future buying intention, August 2013
- Petrol dominates while hybrids will grow rapidly
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- Figure 29: Fuel type, by previous ownership, current ownership, and future buying intention, August 2013
- Consumers will switch to a higher displacement level when trading up
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- Figure 30: Displacement, by previous ownership, current ownership, and future buying intention, August 2013
The Consumer – Consideration Factors for Buying
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- Key points
- Safety of cars is top-of-mind followed by brand
- Drivability and fuel efficiency are also important factors
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- Figure 31: Important factors in choosing a car, August 2013
The Consumer – Brand Image Test
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- Key points
- Methodology
- Brand image analysis
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- Figure 32: Correspondence map, by car brands, August 2013
The Consumer – Attitudes towards Car Purchasing
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- Key points
- Scrutinising car information is important to many consumers when buying future cars
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- Figure 33: Additional attitudes towards the car purchasing process, August 2013
- High-tech offerings attract luxury car buyers, while quality and variety still hinder alternative-energy adoption
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- Figure 34: Attitudes towards the car purchasing process, August 2013
Key Issue – Opportunity Exists to Capture Brand Switching and Improve Consumer Retention
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- Key points
- Brand switching is an important characteristic in the China car market
- China moves into repeat purchase phase
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- Figure 35: Individual car ownership status, August 2013
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- Figure 36: Car purchase intentions, by current car ownership, August 2013
- A propensity to switch brands by Chinese consumers
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- Figure 37: Additional attitudes towards the car purchasing process, August 2013
- Brand switch level is high while German brands enjoy the most loyal consumer base
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- Figure 38: Previous car ownership of car marking origins, by current car ownership, August 2013
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- Figure 39: Future car ownership of car marking origins, by current car ownership, August 2013
- Reasons behind brand switching
- China becomes the main focus of the world’s car manufacturers
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- Figure 40: Total car unit sales annual growth rate, by China, major European car markets, and major North American markets, 2007-12
- Strong income growth and emerging middle class car buyers
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- Figure 41: Middle class car ownership and plans to purchase cars, March 2013
- Chinese consumers are trading up
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- Figure 42: Previous car price range, by current car price range, August 2013
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- Figure 43: Future car price range, by current car price range, August 2013
- Tendency of moving to bigger cars like SUVs
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- Figure 44: Previous car body type, by current car body type, August 2013
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- Figure 45: Future car body type, by current car body type, August 2013
- Actions to reduce brand switching
- Building a strong brand by aligning with specific consumer groups
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- Figure 46: Attitudes towards car purchasing process, by target group, August 2013
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- Figure 47: Additional attitudes towards car purchasing process, by target group, August 2013
- Developing a diversified product portfolio by incorporating luxury models and SUVs
- Reasonable production plans and pricing strategies
- Promoting loyalty programs
- What does it mean?
Key Issue – Evolving Preferences of Chinese Luxury Car Buyers
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- Key points
- Luxury car segment shows lucrative potential
- The luxury car segment grows faster than the total passenger car market
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- Figure 48: Passenger car sales, by luxury and other passenger cars, in China (‘000 vehicles), 2002-12
- Luxury market brand landscape
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- Figure 49: Correspondence map, by car brands, August 2013
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- Figure 50: Top 10 luxury car brands, volume sales (‘000 units) in 2012 and year-on-year growth (2012 versus 2011)
- Ultra-luxury brands turbulent – but outlook good for future growth
- Meeting tomorrow’s luxury car buyers in China
- Brand name defines luxury
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- Figure 51: Additional attitudes towards the car purchasing process, August 2013
- Brand becomes a more important consideration factor
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- Figure 52: Important factors in choosing a car, by luxury car current owners, August 2013
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- Figure 53: Important factors in choosing a car, by future luxury car buyers, August 2013
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- Figure 54: Latest taglines for German luxury brands, 2013
- Figure 55: Attitudes towards the car purchasing process, August 2013
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- Figure 56: Chinese middle class consumers’ shopping habits, March 2013
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- Figure 57: Attitudes towards the car purchasing process, by target group, August 2013
- Shifting of future luxury car buyers’ brand preferences
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- Figure 58: Future luxury car buyers vs. current luxury car users, by car marking origins, August 2013
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- Figure 59: Additional attitudes towards the car purchasing process, August 2013
- Wooing young buyers with compact models for upgrade in the future
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- Figure 60: Future luxury car buyers vs. current luxury car users, by price, August 2013
- Luxury and ultra-luxury SUVs have a bright future
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- Figure 61: Future luxury car buyers vs. current luxury car users, by body type, August 2013
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- Figure 62: Future luxury car buyers vs. current luxury car users, by displacement, August 2013
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- Figure 63: Car body type, by future buying intention, by target group, August 2013
- Women have growing buying power
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- Figure 64: Car purchasing intentions, by gender and age, August 2013
- More advanced in-car telematics
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- Figure 65: Additional attitudes towards the car purchasing process, by target group, August 2013
- What does it mean?
Key Issue – Hybrid Cars – the Path towards the Alternative-energy Future
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- Key points
- Definition and types of energy-saving and alternative-energy cars
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- Figure 66: Evolution of car technology in terms of energy saving, 2013
- Alternative-energy cars are the future of car market development
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- Figure 67: Comparisons of benefits of HEVs, PHEVs, and EVs, 2013
- Regulatory environment gives energy-saving and alternative-energy cars development strong support
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- Figure 68: Major policies relating to alternative-energy car market development, 2007-13
- Latest technology development
- Current obstacles for alternative-energy car development
- Alternative-energy cars are yet to win over Chinese consumers
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- Figure 69: Additional attitudes towards the car purchasing process, August 2013
- Price barrier
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- Figure 70: Additional attitudes towards the car purchasing process, August 2013
- Safety concerns
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- Figure 71: Important factors in choosing a car, August 2013
- Limited choice
- Infrastructure lag
- Technology awaiting further development
- Hybrid technology – the short-to-mid-term solution
- Hybrid cars a short- and mid-term solution
- Start with luxury car segment first by targeting the adventurers
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- Figure 72: Attitudes towards the car purchasing process, August 2013
- Setting up indigenous alternative-energy car brands
- Improving consumer awareness
- What does it mean?
Appendix – Individual Car Ownership Status
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- Figure 73: Individual car ownership status, August 2013
- Figure 74: Individual car ownership status, by demographics, August 2013
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- Figure 75: Individual car ownership status – Car owner, by demographics, August 2013
- Figure 76: Individual car ownership status – Don’t own a car and Non-user, by demographics, August 2013
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Appendix – Car Purchasing Intentions
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- Figure 77: Car purchasing intentions, August 2013
- Figure 78: Car purchasing intentions, by demographics, August 2013
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- Figure 79: Car purchasing intentions, by individual car ownership status, August 2013
- Figure 80: Car purchasing intentions, by individual car ownership status – Car owner, August 2013
- Figure 81: Car purchasing intentions, by individual car ownership status – Don’t own a car, August 2013
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Appendix – Current Car Brand and Model
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- Figure 82: Brand and model of the main car, August 2013
- Figure 83: Brands of the main car, by demographics, August 2013
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- Figure 84: Price range of the main car, by demographics, August 2013
- Figure 85: Body type of the main car, by demographics, August 2013
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- Figure 86: Most popular fuel type of the main car, by demographics, August 2013
- Figure 87: Next most popular fuel type of the main car, by demographics, August 2013
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- Figure 88: Most popular displacement of the main car, by demographics, August 2013
- Figure 89: Next most popular displacement of the main car, by demographics, August 2013
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Appendix – Previous Car Brand and Model
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- Figure 90: Brand and model of the previous car, August 2013
- Figure 91: Brands of the previous car, by demographics, August 2013
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- Figure 92: Price range of the previous car, by demographics, August 2013
- Figure 93: Body type of the previous car, by demographics, August 2013
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- Figure 94: Most popular fuel type of the previous car, by demographics, August 2013
- Figure 95: Next most popular fuel type of the previous car, by demographics, August 2013
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- Figure 96: Most popular displacement of the previous car, by demographics, August 2013
- Figure 97: Next most popular displacement of the previous car, by demographics, August 2013
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Appendix – Future Car Brand and Model
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- Figure 98: Brand and model of the future car, August 2013
- Figure 99: Brands of the future car, by demographics, August 2013
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- Figure 100: Price range of the future car, by demographics, August 2013
- Figure 101: Body type of the future car, by demographics, August 2013
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- Figure 102: Most popular fuel type of the future car, by demographics, August 2013
- Figure 103: Next most popular fuel type of the future car, by demographics, August 2013
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- Figure 104: Most popular displacement of the future car, by demographics, August 2013
- Figure 105: Next most popular displacement of the future car, by demographics, August 2013
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Appendix – Important Factors in Choosing a Car
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- Figure 106: Important factors in choosing a car, August 2013
- Figure 107: Most popular important factors in choosing a car – Rank 1, by demographics, August 2013
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- Figure 108: Next most popular important factors in choosing a car – Rank 1, by demographics, August 2013
- Figure 109: Other important factors in choosing a car – Rank 1, by demographics, August 2013
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- Figure 110: Most popular important factors in choosing a car – Rank 2, by demographics, August 2013
- Figure 111: Next most popular important factors in choosing a car – Rank 2, by demographics, August 2013
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- Figure 112: Other important factors in choosing a car – Rank 2, by demographics, August 2013
- Figure 113: Most popular important factors in choosing a car – Rank 3, by demographics, August 2013
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- Figure 114: Next most popular important factors in choosing a car – Rank 3, by demographics, August 2013
- Figure 115: Other important factors in choosing a car – Rank 3, by demographics, August 2013
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- Figure 116: Important factors in choosing a car, by car purchasing intentions, August 2013
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Appendix – Attitudes Towards Car Purchasing Process
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- Figure 117: Additional attitudes towards car purchasing process, August 2013
- Figure 118: Most popular additional attitudes towards car purchasing process, by demographics, August 2013
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- Figure 119: Next most popular additional attitudes towards car purchasing process, by demographics, August 2013
- Figure 120: Additional attitudes towards car purchasing process, by most popular individual car ownership status, August 2013
- Figure 121: Additional attitudes towards car purchasing process, by next most popular individual car ownership status, August 2013
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- Figure 122: Additional attitudes towards car purchasing process, by car purchasing intentions August 2013
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Appendix – Attitudes by Car Brand
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- Figure 123: Attitudes, by car brand, August 2013
- Figure 124: Attitudes, by car brand, August 2013 (continued)
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- Figure 125: Most popular attitudes, by car brand – Volkswagen, by demographics, August 2013
- Figure 126: Next most popular attitudes, by car brand – Volkswagen, by demographics, August 2013
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- Figure 127: Other attitudes, by car brand – Volkswagen, by demographics, August 2013
- Figure 128: Most popular attitudes, by car brand – Audi, by demographics, August 2013
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- Figure 129: Next most popular attitudes, by car brand – Audi, by demographics, August 2013
- Figure 130: Other attitudes, by car brand – Audi, by demographics, August 2013
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- Figure 131: Most popular attitudes, by car brand – BMW, by demographics, August 2013
- Figure 132: Next most popular attitudes, by car brand – BMW, by demographics, August 2013
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- Figure 133: Other attitudes, by car brand – BMW, by demographics, August 2013
- Figure 134: Most popular attitudes, by car brand – Mercedes-Benz, by demographics, August 2013
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- Figure 135: Next most popular attitudes, by car brand – Mercedes-Benz, by demographics, August 2013
- Figure 136: Other attitudes, by car brand – Mercedes-Benz, by demographics, August 2013
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- Figure 137: Most popular attitudes, by car brand – Toyota, by demographics, August 2013
- Figure 138: Next most popular attitudes, by car brand – Toyota, by demographics, August 2013
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- Figure 139: Other attitudes, by car brand – Toyota, by demographics, August 2013
- Figure 140: Most popular attitudes, by car brand – Honda, by demographics, August 2013
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- Figure 141: Next most popular attitudes, by car brand – Honda, by demographics, August 2013
- Figure 142: Other attitudes, by car brand – Honda, by demographics, August 2013
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- Figure 143: Most popular attitudes, by car brand – Buick, by demographics, August 2013
- Figure 144: Next most popular attitudes, by car brand – Buick, by demographics, August 2013
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- Figure 145: Other attitudes, by car brand – Buick, by demographics, August 2013
- Figure 146: Most popular attitudes, by car brand – Ford, by demographics, August 2013
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- Figure 147: Next most popular attitudes, by car brand – Ford, by demographics, August 2013
- Figure 148: Other attitudes, by car brand – Ford, by demographics, August 2013
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- Figure 149: Most popular attitudes, by car brand – Hyundai, by demographics, August 2013
- Figure 150: Next most popular attitudes, by car brand – Hyundai, by demographics, August 2013
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- Figure 151: Other attitudes, by car brand – Hyundai, by demographics, August 2013
- Figure 152: Most popular attitudes, by car brand – Chery, by demographics, August 2013
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- Figure 153: Next most popular attitudes, by car brand – Chery, by demographics, August 2013
- Figure 154: Other attitudes, by car brand – Chery, by demographics, August 2013
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Appendix – Attitudes Towards Car Purchasing Process
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- Figure 155: Attitudes towards car purchasing process, August 2013
- Figure 156: Agreement with the statement ‘It is only necessary to change your car when you can afford it rather than when you need to’, by demographics, August 2013
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- Figure 157: Agreement with the statement ‘I would consider switching between different car brands’, by demographics, August 2013
- Figure 158: Agreement with the statement ‘It’s more reliable to purchase from the same car dealer when buying a car’, by demographics, August 2013
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- Figure 159: Agreement with the statement ‘It is better to have a car as big as I can afford’, by demographics, August 2013
- Figure 160: Agreement with the statement ‘Brand is more of an indicator of ‘luxury’ than price’, by demographics, August 2013
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- Figure 161: Agreement with the statement ‘China offers a good range of its own luxury car brands compared to international brands’, by demographics, August 2013
- Figure 162: Agreement with the statement ‘A luxury car is a reflection of one’s social status’, by demographics, August 2013
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- Figure 163: Agreement with the statement ‘It is worth paying more for a car with advanced in-car information system/telematics’, by demographics, August 2013
- Figure 164: Agreement with the statement ‘Alternative-energy cars don’t perform as well as a regular one’, by demographics, August 2013
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- Figure 165: Agreement with the statement ‘It’s difficult to find an alternative-energy car suitable for my needs’, by demographics, August 2013
- Figure 166: Agreement with the statement ‘The government should have more favourable regulations for those who are planning to buy an alternative-energy car’, by demographics, August 2013
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- Figure 167: Attitudes towards car purchasing process, by most popular individual car ownership status, August 2013
- Figure 168: Attitudes towards car purchasing process, by next most popular individual car ownership status, August 2013
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Appendix – Target Group Analysis
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- Figure 169: Target groups, by demographics, August 2013
- Figure 170: Individual car ownership status, by target groups, August 2013
- Figure 171: Car purchasing intentions, by target groups, August 2013
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- Figure 172: Brand and model of the main car, by target groups, August 2013
- Figure 173: Brand and model of the previous car, by target groups, August 2013
- Figure 174: Brand and model of the future car, by target groups, August 2013
- Figure 175: Important factors in choosing a car, by target groups, August 2013
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- Figure 176: Additional attitudes towards car purchasing process, by target groups, August 2013
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