Table of Contents
Introduction
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- Definition
- Report structure
- Methodology
- Abbreviations
Executive Summary
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- The market
- Forecast
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- Figure 1: Forecast – volume sales of new cars, 2008-18
- Figure 2: Forecast – volume sales of used cars, 2008-18
- Car market in 2013
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- Figure 3: Car volume sales, by new cars, 2008-13
- Figure 4: Car volume sales, by used cars, 2008-13
- SUVs grew strongly to become the second largest car segment
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- Figure 5: Share of Car volume sales, by segment of passenger cars, 2008-13
- Alternative-fuel cars still in infancy
- German makers further extend their lead among international brands
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- Figure 6: Market share of passenger cars by volume, by car origins, 2010-13
- Multinational joint ventures dominate
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- Figure 7: Market share of top ten passenger car manufacturers by volume, by passenger cars, 2013
- Market drivers and barriers
- Retail Channels
- Car retailing development trends
- Key policy updates in 2013
- Dealership groups
- The consumer: car ownership status
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- Figure 8: Household car ownership status, December 2013
- The consumer: car purchase plan
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- Figure 9: Car purchase plan, December 2013
- The consumer: resources used for last car bought
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- Figure 10: Resources used for last car bought, by comparisons, December 2013
- The consumer: channel of last car bought
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- Figure 11: Channel of distribution used for last car bought, December 2013
- The consumer: attitudes towards car aftersales services
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- Figure 12: Attitudes towards car aftersales services, December 2013
- The consumer: attitudes towards car and car retailing
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- Figure 13: Attitudes towards car and car retailing, on any agreement, December 2013
- Key issue: How to target consumers through differentiation
- Key issue: Improvements required for current 4S model
- Key issue: Does online car retailing have a chance?
- What we think
The Market
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- Key points
- Car market in 2013
- New car sales exhibited positive growth
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- Figure 14: Car volume sales, by new cars, 2008-13
- Used car transaction still stunted
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- Figure 15: Car volume sales, by used cars, 2008-13
- Segmentation
- SUVs still grew strongly…
- SUVs and MPVs emerge as two fastest growth segments
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- Figure 16: Volume growth rate of car sales, by car type, 2008-13
- …and became the second largest car segment
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- Figure 17: Share of Car volume sales, by passenger car and commercial car, 2008-13
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- Figure 18: Share of Car volume sales, by segments of passenger cars, 2008-13
- Alternative-fuel cars still in their infancy
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- Figure 19: Share of alternative-fuel car sales, by electric cars and plug-in hybrid electric cars, 2013
- German makers further extend the lead among international brands
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- Figure 20: Volume sales and growth rate, by Audi, BMW, and Mercedes-Benz, 2013
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- Figure 21: Market share of passenger cars in volume, by car origins, 2010-13
- Multinational Joint Ventures dominate
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- Figure 22: Market share of passenger car manufacturers in volume, by passenger cars, 2010-13
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- Figure 23: Market share of top ten passenger car manufacturers in volume, by passenger cars, 2010-13
- Market drivers
- Economic growth continues
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- Figure 24: GDP and growth rates, China, 2008-13
- Urban and rural income rise
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- Figure 25: Annual per capita net income and actual growth rate of urban and rural residents in China (RMB), 2008-13
- Urbanisation
- Still room for car parc growth
- Change of car ownership dynamics
- Booming luxury cars
- Alternative energy push
- Growth barriers
- Restriction on licence plates
- City congestion and traffic pressure
- Parking space limitation
- Car exhaust emissions impact on environment
- The risk of structural excess production
- Forecast
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- Figure 26: Forecast – volume sales of new cars, 2008-18
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- Figure 27: Forecast – volume sales of used cars, 2008-18
Retail Channels
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- Key points
- Car retailing development trends
- Dynamics of production and retailing
- The 4S model still dominates but multiple channels start to demonstrate greater potential
- The benefits of alternative retailing models in lower tier cities
- Online car purchasing has taken off, but still has a long way to go
- Key policy updates in 2013
- Implementation of Provisions on the Liability for the Repair, Replacement and Return of Household Automotive Products
- Discussion on revising the Administration of Automobile Brands Sales Implementing Procedures”
- Announcement of the Specifications of Used Car Appraisal
- Dealership groups
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- Figure 28: Top ten China auto dealer groups, 2012
- Retailer profiles
- China Grand Automotive Service Co., Ltd.
- Pang Da Automobile Trade Co., Ltd.
- Zhejiang Materials Industry Yuantong Automobile Group Co., Ltd.
- Online platform:
- Tmall
The Consumer – Car Ownership Status
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- Key points
- Consumers are mainly purchasing new cars
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- Figure 29: Household car ownership status, by car buyers, December 2013
- Currently car buyers are likely to be middle-aged, with higher incomes, and from tier one cities
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- Figure 30: Household car ownership status, by car buyers in demographics, December 2013
- Multiple car ownership is still rare
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- Figure 31: household car ownership status, by multiple car ownership, December 2013
- Room for a further car ownership boost…
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- Figure 32: Household car ownership status, by car non-buyers, December 2013
- …and these potential buyers are likely to be young, single, and from lower tier cities
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- Figure 33: Household car ownership status, by car non-buyers, by demographics, December 2013
The Consumer – Car Purchase Plan
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- Key points
- Car purchase intention is strong…
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- Figure 34: Car purchase plan, December 2013
- …especially among younger professionals, people with family and children
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- Figure 35: Car purchase plan, by demographics, December 2013
- Current car buyers show more interest in buying cars in the near future
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- Figure 36: Car purchase plan, by car ownership status, December 2013
The Consumer – Resources Used for Last Car Bought
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- Key points
- Online becomes the most important information source
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- Figure 37: Resources used for last car bought, by comparisons, December 2013
- Online information channels are most popular with people in their 30s
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- Figure 38: Resources used for last car bought, by demographics, December 2013
- Word-of-mouth and dealership visits are still key channels for consumer interaction
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- Figure 39: Resources used for last car bought, December 2013
- Limited influence of TV advertising and emerging appeal of mobile phone apps
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- Figure 40: Resources used for last car bought, by TV advertisements and mobile apps, December 2013
The Consumer – Channel of Last Car Bought
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- Key points
- 4S shops are still the mainstream point of purchase for cars
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- Figure 41: Channel of last car bought, December 2013
- Current 4S shop users tend to be older, married, and wealthier people
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- Figure 42: Channel of last car bought, by demographics, December 2013
- Consumers starting to embrace more alternative purchase channels
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- Figure 43: Channel of last car bought, by comparison, December 2013
The Consumer – Attitudes towards Car Aftersales Services
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- Key points
- The quality of aftersales services offered by 4S shops is recognised, but price is a likely barrier
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- Figure 44: Attitudes towards car aftersales services, by service quality and price, December 2013
- Consumers are not looking for the lowest cost, but for value-for-money services
- Quality aftersales services needed
- Half of consumers prefer to purchase new cars to avoid potential maintenance problems
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- Figure 45: Attitudes towards car aftersales services, by car usage, December 2013
- The quality of aftersales services will impact future consumer purchase choices
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- Figure 46: Attitudes towards car aftersales services, by satisfaction of aftersales services, December 2013
The Consumer – Attitudes towards Car and Car Retailing
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- Key points
- Further improvements required for 4S shops
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- Figure 47: Attitudes towards car and car retailing, by improvements to the 4S model, by any agreement, December 2013
- Online car buying channels are welcomed
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- Figure 48: Attitudes towards car and car retailing, by attitudes towards online car purchase, by any agreement, December 2013
- Convenience is an important factor in purchase choice
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- Figure 49: Attitudes towards car and car retailing, by car buying process, by any agreement, December 2013
Key Issue – How to Target Consumers through Differentiation
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- Key points
- Consumer segmentation
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- Figure 50: Target groups, December 2013
- Enthusiasts (33% of sample)
- Conservatives (21% of sample)
- Casualists (19% of sample)
- Skeptics (27% of sample)
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- Figure 51: Attitudes towards car and car retailing, by target groups, December 2013
- What it means
Key Issue – Improvements Required for Current 4S Model
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- Key points
- No longer the golden standard in car retailing, but the 4S model remains important
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- Figure 52: Channel of last car bought, by comparison, December 2013
- Ways for improvements
- Leveraging car dealership groups
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- Figure 53: Attitudes towards car and car retailing, by agreement with “4S stores of well-known dealership groups offer better car purchasing services”, December 2013
- Enhancing the in-store experience
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- Figure 54: Attitudes towards car and car retailing, by agreement with “I would like to see more advanced technologies that can facilitate my car buying process”, December 2013
- Attention on female power
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- Figure 55: Car purchase plan, December 2013
- What it means
Key Issue – Does Online Car Retailing Have a Chance?
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- Key points
- Online purchase savvy nation
- Online car purchase channel starts to emerge
- Online car buying activities in 2013
- The pros and cons of online car retailing
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- Figure 56: Attitudes towards car and car retailing, December 2013
- O2O has the potential to aid online car purchasing
- The success of Tesla
- What it means
Appendix – Car Ownership Status
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- Figure 57: Household car ownership status, December 2013
- Figure 58: Most popular household car ownership status, by demographics, December 2013
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- Figure 59: Next most popular household car ownership status, by demographics, December 2013
- Figure 60: Other household car ownership status, by demographics, December 2013
- Repertoire analysis
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- Figure 61: Repertoire household car ownership status, December 2013
- Figure 62: Repertoire household car ownership status, by demographics, December 2013
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- Figure 63: Car purchase plan, by repertoire of household car ownership status, December 2013
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Appendix – Car Purchase Plan
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- Figure 64: Car purchase plan, December 2013
- Figure 65: Car purchase plan, by demographics, December 2013
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- Figure 66: Car purchase plan, by most popular household car ownership status, December 2013
- Figure 67: Car purchase plan, by next most popular household car ownership status, December 2013
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Appendix – Resources Used for Last Car Bought
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- Figure 68: Resources used for last car bought, December 2013
- Figure 69: Most popular resources used for last car bought, by demographics, December 2013
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- Figure 70: Next most popular resources used for last car bought, by demographics, December 2013
- Figure 71: Other resources used for last car bought, by demographics, December 2013
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- Figure 72: Resources used for last car bought, by household car ownership status, December 2013
- Figure 73: Resources used for last car bought, by channel of last car bought, December 2013
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Appendix – Channel of Last Car Bought
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- Figure 74: Channel of last car bought, December 2013
- Figure 75: Most popular channel of last car bought, by demographics, December 2013
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- Figure 76: Next most popular channel of last car bought, by demographics, December 2013
- Figure 77: Channel of last car bought, by household car ownership status, December 2013
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- Figure 78: Channel of last car bought, by car purchase plan, December 2013
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Appendix – Attitudes towards Car Aftersales Services
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- Figure 79: Attitudes towards car aftersales services, December 2013
- Figure 80: Most popular attitudes towards car aftersales services, by demographics, December 2013
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- Figure 81: Next most popular attitudes towards car aftersales services, by demographics, December 2013
- Figure 82: Attitudes towards car aftersales services, by household car ownership status, December 2013
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- Figure 83: Attitudes towards car aftersales services, by car purchase plan, December 2013
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Appendix – Attitudes towards Car and Car Retailing
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- Figure 84: Attitudes towards car and car retailing, December 2013
- Figure 85: Agreement with the statement ‘There is still room for improvement in terms of the expertise of sales consultants in 4S stores’, by demographics, December 2013
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- Figure 86: Agreement with the statement ‘Overall, I am satisfied with the services provided by 4S stores’, by demographics, December 2013
- Figure 87: Agreement with the statement ‘4S stores of well-known dealership groups offer better car purchasing services’, by demographics, December 2013
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- Figure 88: Agreement with the statement ‘I would like to see more advanced technologies that can facilitate my car buying process’, by demographics, December 2013
- Figure 89: Agreement with the statement ‘The prices of services offered by 4S stores currently are not transparent enough’, by demographics, December 2013
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- Figure 90: Agreement with the statement ‘Buying a car from online retailers is appealing to me’, by demographics, December 2013
- Figure 91: Agreement with the statement ‘The after sales services offered by online car retailers are not sophisticated enough’, by demographics, December 2013
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- Figure 92: Agreement with the statement ‘I would like to see more online car retailers to choose from’, by demographics, December 2013
- Figure 93: Agreement with the statement ‘The quality of the car sold online is as good as those sold offline’, by demographics, December 2013
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- Figure 94: Agreement with the statement ‘The current car buying process is too complicated’, by demographics, December 2013
- Figure 95: Agreement with the statement ‘Lower prices is always prioritized over offering good sales service when buying a car’, by demographics, December 2013
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- Figure 96: Agreement with the statement ‘The one-stop car buying service offered by car zones/car cities makes the car purchasing process more convenient’, by demographics, December 2013
- Figure 97: Attitudes towards car and car retailing, by household car ownership status, December 2013
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- Figure 98: Attitudes towards car and car retailing, by car purchase plan, December 2013
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Appendix – Further analysis
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- Figure 99: Target groups, December 2013
- Figure 100: Target groups, by demographics, December 2013
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- Figure 101: Household car ownership status, by target groups, December 2013
- Figure 102: Car purchase plan, by target groups, December 2013
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- Figure 103: Resources used for last car bought, by target groups, December 2013
- Figure 104: Channel of last car bought, by target groups, December 2013
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- Figure 105: Attitudes towards car after sales services, by target groups, December 2013
- Figure 106: Attitudes towards car and car retailing, by target groups, December 2013
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