Table of Contents
Executive Summary
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- The market
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- Figure 1: China total volume new passenger car sales forecast, 2010-20
- Companies and brands
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- Figure 2: Leading companies’ market shares in the China car market, by volume, 2014-15 (till June)
- The consumer
- German brands are facing challenges, though they still dominate China car market
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- Figure 3: Brand ownership, July 2015
- 64% of females claim they are the main drivers
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- Figure 4: Car driving status, by age and gender, July 2015
- Fuel economy and in-car entertainment system generate the lowest user satisfaction
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- Figure 5: Car performance satisfaction, July 2015
- Running errands for family and daily-commuting are the top two reasons for first car purchase
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- Figure 6: reasons for purchasing first car, July 2015
- Safety upgrade is the top reason for replacing cars
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- Figure 7: Reasons for purchasing replacement cars, July 2015
- People have high purchase intentions when it comes to new energy cars
- Charging and power problems remain the main barriers to purchase
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- Figure 8: Reasons for not purchasing new energy car, July 2015
- What we think
Issues and Insights
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- Brands could promote new energy cars as fulfilling consumers’ daily transport needs
- The facts
- The implications
- Encourage car owners’ second purchase through fulfilling their aspirations
- The facts
- The implications
- What else can brands do to enhance competitiveness?
- The facts
- The implications
The Market – What you need to know
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- New passenger car sales only grew 4.8% in the first half of 2015
- New energy car sales increased rapidly
- People’ aspirations towards a better quality of life drive further growth
Market Size and Forecast
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- Strong growth in SUVs and MPVs
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- Figure 9: Total volume sales of new passenger cars, 2011-15 (till June)
- Growth fails to offset the slowdown in total car market
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- Figure 10: Total volume sales of second-hand cars, 2009-14
- New energy cars become a driver of future market growth
- Slower growth forecasted over 2015-20
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- Figure 11: China total volume new passenger car sales forecast, 2010-20
Market Factors
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- Purchase intention from new drivers
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- Figure 12: The number of civil motor vehicles and car drivers, total China, 2012-15 (till June)
- Car owners are active in replacing their cars
- Demand from lower tier cities
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- Figure 13: Private car ownership, tier one cities and total China, 2011-14
- The relaxation of the One Child Policy may also encourage further growth
- Increasing cost of finding a parking space in major cities
Key Players – What you need to know
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- Car market in China becomes more competitive than before
- Brands are trying different methods to improve competitiveness
- Local tech giants are entering the automotive industry
Market Share
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- A good year for domestic brands
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- Figure 14: Sales volume of new passenger cars, by country of the brand, 2012-15 (till June)
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- Figure 15: Top ten SUV models, by sales volume, 2012-15 (till July)
- China car market is becoming more competitive
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- Figure 16: Leading companies’ market shares in the China car market, by volume, 2012-15 (up to June)
Competitive Strategies
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- Working with car rental companies
- BMW Zinoro collaborates with eHi Car Services
- Shanghai Volkswagen works with China Auto Rental
- Dongfeng Nissan partners Baojia to enter car sharing business
- Major brands are all investing to compete in the new energy car segment
- Volkswagen
- Toyota
- Hyundai and Kia
- Ford
- BYD
- Car brands are cutting their price to be more competitive
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- Figure 17: Price cutting tactics implemented by some brands, 2015
Who’s Innovating?
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- More flexible digital advertising
- Local tech giants are moving into automotive industry
The Consumer – What you need to know
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- German brands are facing challenges and losing appeal
- Increasing influence from women in car purchasing
- American and Japanese brands are scoring higher than German brands on multiple attributes
- German cars are very popular among those buying a car to get married
- Chinese consumers replace their cars for a better experience
- Chinese consumers have high purchase intention towards new energy cars
Car Ownership
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- German brands are facing challenges, but still dominate the China car market
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- Figure 18: Brand ownership, July 2015
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- Figure 19: Brand ownership ranking, August 2013 and July 2015
- Car owners are open to more brands as they become sophisticated
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- Figure 20: Brand ownership, by car ownership status, Jul 2015
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- Figure 21: Car purchase intention, August 2013 and July 2015
- Demographic differences
- German brands are losing appeal among 30-49-year-olds
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- Figure 22: Brand ownership, by age, August 2013 and July 2015
- High earners are more open-minded when selecting car brands
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- Figure 23: Brand ownership, by monthly personal income, August 2013 and July 2015
Who Drives the Car
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- 64% of females claim they are the main drivers
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- Figure 24: Car driving status, by age and gender, July 2015
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- Figure 25: Factors important to consumers in choosing which car to buy, by gender, June 2014
Car Performance Satisfaction
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- Fuel economy and in-car entertainment system generate the lowest satisfaction
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- Figure 26: Car performance satisfaction, July 2015
- American and Japanese brands are scoring high on multiple attributes
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- Figure 27: Car performance satisfaction – any satisfied*, by brand owners, July 2015
Reasons for Purchasing the First Car
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- Running errands for family and daily-commuting are the top two reasons
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- Figure 28: reasons for purchasing the first car, July 2015
- German cars are preferred by those buying a car to get married
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- Figure 29: reasons for purchasing first car, by brand that people have bought last time, July 2015
- Geographic differences also have an influence on consumers’ purchasing reasons
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- Figure 30: reasons for purchasing first car, by city, July 2015
Reasons for Purchasing Replacement Cars
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- Safety is the top reason pushing consumers’ car replacement behaviour
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- Figure 31: Reasons for purchasing replacement cars, July 2015
- Young and old consumers are triggered by different things
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- Figure 32: Reasons for purchasing replacement car, by age, July 2015
- Diverse reasons from consumers with different household incomes
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- Figure 33: Reasons for purchasing replacement car, by monthly household income, July 2015
Purchase Intention and Purchase Barriers of New Energy Cars
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- People have high purchase intention towards new energy cars
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- Figure 34: Purchase intention towards new energy cars, July 2015
- Who is more likely to purchase new energy cars?
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- Figure 35: Purchase intention towards new energy car, by demographics, Jul 2015
- Charging and power issues are still the top concerns
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- Figure 36: Reasons for not purchasing new energy car, July 2015
Meet the Mintropolitans
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- Basic profile of MinT
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- Figure 37: Car ownership, by MinT and non-MinT, July 2015
- Figure 38: Car performance satisfaction – any satisfied*, by MinT and non-MinT, July 2015
- MinT are more likely to buy their first cars because of self-drive travelling
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- Figure 39: Reasons for purchasing first cars, by MinT and non-MinT, July 2015
- MinT are more likely to replace their cars to upgrade their life
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- Figure 40: Reasons for purchasing replacement car, by MinT and non-MinT, Jul 2015
- MinT are more likely to try new energy cars
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- Figure 41: Purchase intention towards new energy cars, by MinT and non-MinT, Jul 2015
Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Mintropolitans
- Why Mintropolitans?
- Who are they?
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- Figure 42: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
- Figure 43: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
- Abbreviations
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