Table of Contents
Overview
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- What you need to know
- Covered in this Report
- Definition
- Excluded
Executive Summary
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- The market
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- Figure 1: Best- and worst-case forecast of luxury cars sales volume, 2012-22
- Companies and brands
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- Figure 2: Market share of luxury car brands, by sales volume, 2015 and 2016
- The consumer
- Brand as the first criterion
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- Figure 3: Luxury car definition, January 2017
- Improving living quality while showcasing personal taste
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- Figure 4: Perceived reasons for purchasing luxury cars, January 2017
- Lincoln stands out in perceived luxury level
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- Figure 5: Perceived level of luxury of car brands, January 2017
- Brands to reinforce different features
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- Figure 6: Brand perception, average as benchmark, January 2017
- Love at first sight
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- Figure 7: Attention on interior and exterior features, January 2017
- What we think
Issues and Insights
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- How are luxury cars defined in China?
- The facts
- The implications
- How is Mercedes-Benz winning back the China market?
- The facts
- The implications
- How to target young car buyers effectively?
- The facts
- The implications
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- Figure 8: Lexus GS X Yohji Yamamoto
The Market – What You Need to Know
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- Luxury cars have better sales record than conventional ones in China
- Trading up for better living quality
Market Size and Forecast
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- Faster growth than the total new passenger car market
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- Figure 9: Sales volume and growth rate of luxury cars and total new passenger cars in China, 2011-16
- Becoming the most important luxury car market
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- Figure 10: The US and China markets’ luxury car sales volume and share, 2012-16
- Exceeding 5 million annual sales in 2022
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- Figure 11: Best- and worst-case forecast of luxury cars sales volume, 2012-22
Market Drivers
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- The trading up trend of car buyers
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- Figure 12: Car purchase price comparison of first-time and replacement car buyers, July 2016
- Luxury brands introducing entry-level models
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- Figure 13: Mercedes-Benz Concept A Sedan in Shanghai Auto Show 2017
- Purchasing a car to improve living quality
Key Players – What You Need to Know
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- Mercedes-Benz is taking over leadership again
- The rivalry of tier two luxury car brands
- Continuous investment into China market
- Getting closer to young generation
Market Share
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- Mercedes-Benz is catching up in sales volume
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- Figure 14: Market share of luxury car brands, 2015 and 2016
- Audi’s sales drop due to dealer crisis
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- Figure 15: Annual sales growth of luxury car brands, 2016 vs 2015
- The rise of American luxury car brands
- Distinct performance of Japanese car brands
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- Figure 16: Infiniti QX50 Concept in Shanghai Auto Show 2017
- 2017 is a critical year for Volvo
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- Figure 17: Sales volume of luxury car brands, 2016
- Steadily developing Jaguar Land Rover
- The bestselling ‘premium’ luxury brand Porsche
Competitive Strategies
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- Control the cost through localised production
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- Figure 18: Luxury car brands that have domestically produced models
- Introducing specific models catering to China market
- Forging a stable brand/dealer relationship
- Connecting younger generations
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- Figure 19: Key slogans of luxury car brands in the China market
- Figure 20: Audi’s first answer on Zhihu
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- Figure 21: Eddie Peng X Volvo
Who’s Innovating?
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- Marketing through livestreaming platforms
- Showing technology innovations innovatively
- Cross-category partnership
The Consumer – What You Need to Know
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- Brand and craftsmanship
- Different reasons for purchase
- American luxury car brands stand out
- Highlighted features of different luxury car brands
Luxury Car Definition
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- Brand over price
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- Figure 22: Luxury car definition, January 2017
- Luxury car owners value the authenticity of brands
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- Figure 23: Luxury car definition, luxury car owners vs luxury car non-owners (as benchmark), January 2017
- New generation value craftsmanship more
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- Figure 24: Claim rates of selected luxury car definition attributes, by age, January 2017
Attitudes towards Luxury Car Price
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- RMB 500,000 as a threshold
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- Figure 25: Perceived luxury car price, January 2017
- Higher entry price perceived by luxury car owners
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- Figure 26: Perceived luxury car price, by luxury car owners and non-owners, January 2017
- Females perceive luxury cars to be more expensive than males
- Southern residents have a lower entry price of luxury cars
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- Figure 27: Perceived luxury car price, by region, January 2017
Reasons for Purchasing Luxury Cars
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- Living quality, taste and success
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- Figure 28: Perceived reasons for purchasing luxury cars, January 2017
- Business owners from tier two and three cities more driven by status
- Luxury car owners are less willing to (admit) showing off
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- Figure 29: Perceived reasons for purchasing luxury cars, by luxury car owners and non-owners, January 2017
Luxury Car Brand Awareness
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- Porsche, Lincoln and Cadillac stand out
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- Figure 30: Perceived level of luxury of car brands, January 2017
- Higher recognitions of luxury car owners
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- Figure 31: Gap between luxury car owners and non-owners on the claim rates of super-luxury, non-owners as benchmark, January 2017
Luxury Car Brand Perceptions
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- Craftsmanship and safe as the top perceived features
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- Figure 32: Top mentioned features, January 2017
- The competitive advantages of different car brands
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- Figure 33: Brand perception, average as benchmark, January 2017
- Brand images of German car brands
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- Figure 34: Perception of German car brands, January 2017
- Brand images of Land Rover, Jaguar and Volvo
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- Figure 35: Perception of British car brands plus Volvo, January 2017
- Brand images of American car brands
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- Figure 36: Perception of American car brands, January 2017
- Brand images of Japanese car brands
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- Figure 37: Perception of Japanese car brands, January 2017
- Perceived advantages of different car brand origins
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- Figure 38: Perceptions of different origins of car brands, January 2017
- More differentiation among luxury car owners
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- Figure 39: Perception of selected car brands, by car brand owners and non-owners, January 2017
Attention on Exterior and Interior Features
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- More about an overall feeling
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- Figure 40: Attention on interior and exterior features, January 2017
- Northern consumers prefer a masculine design
- Newlyweds value space the most
- Luxury car owners care more about the materials used
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- Figure 41: Top five mentioned interior and exterior features, by luxury car owners and non-owners, January 2017
Meet the Mintropolitans
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- The devil is in the details
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- Figure 42: Luxury car definition, by MinTs and Non-MinTs, January 2017
- An holistic brand experience matters
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- Figure 43: Perceived reasons for purchasing luxury cars, by MinTs and non-MinTs, January 2017
- The expression of ‘this is my car’
Appendix – Market Size and Forecast
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- Figure 44: Total sales volume of luxury cars, 2012-22
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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