Table of Contents
Executive Summary
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- The market
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- Figure 2: Best- and worst-case forecast of total new passenger car sales volume, China, 2012-22
- Figure 3: Best- and worst-case forecast of SUV sales volume, China, 2012-22
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- Figure 4: Best- and worst-case forecast of basic passenger car sales volume, China, 2012-22
- Figure 5: Best- and worst-case forecast of MUV sales volume, China, 2012-22
- Companies and brands
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- Figure 6: Car brand market share, 2015-17
- The consumer
- Car purchasing plan differs between car owners and first-time buyers
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- Figure 7: Car purchasing plan, by decision-making stage and car buyer groups, July 2017
- Target price increases during the decision-making process
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- Figure 8: The price range of cars planning to purchase, July 2017 vs July 2016
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- Figure 9: Target price range, by car purchasing schedule, July 2017
- Information channel preference varies at different stages
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- Figure 10: Online information channel, by car purchasing stage, July 2017
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- Figure 11: Occasions see auto ads that can be clearly remembered, July 2017
- Tier two and three city car buyers are more practical
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- Figure 12: ‘Very important’ car purchasing influencing factors, by city tier, July 2017
- Make test drives more family-oriented
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- Figure 13: Test drive preference, July 2017
- What we think
Issues and Insights
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- How has technology reshaped the car purchasing journey?
- The facts
- The implications
- How is the role of cars evolving in China?
- The facts
- The implications
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- Figure 14: Greeting light display of MINI Vision concept model
- How to differentiate MPV models?
- The facts
- The implications
The Market – What You Need to Know
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- Double-digit growth unlikely to happen again in 2017
- SUV model is the only winner
- New challenges on the horizon
Market Size and Forecast
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- Slower growth than 2016
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- Figure 15: Sales volume and growth rate of total new passenger car market, 2012-17
- Market expected to grow at a CAGR of 10.5% till 2022
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- Figure 16: Best- and worst-case forecast of total new passenger car sales volume, China, 2012-22
Market Drivers
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- Vehicle purchase tax discount coming to the end
- Phenomenal popularity of SUVs
- The support of new energy car sales
- Second-hand car market is gaining momentum
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- Figure 17: Comparison of sales volume of second-hand and new passenger cars, 2010-17
- Car sharing is reshaping commuting behaviour, not purchasing
- Rebound in confidence level
- Growing replacement demand
- Buying an extra car for the family
Market Segmentation
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- Struggling basic passenger car market
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- Figure 18: Best- and worst-case forecast of basic passenger car sales volume, China, 2012-22
- MPV market is expected to recover slowly
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- Figure 19: Best- and worst-case forecast of MUV sales volume, China, 2012-22
- SUV sales to hit a record high of 20,000 units in 2020
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- Figure 20: Best- and worst-case forecast of SUV sales volume, China, 2012-22
Key Players – What You Need to Know
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- Local brands are squeezing the space of Korean brands
- S&E strategy
- Go premium in products, but down to earth on ads
- Spoiler to the market
Market Share
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- Top 10 becoming even bigger
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- Figure 21: Car brand market share, 2015-17
- Distinct situation of Korean and Japanese brands
- Local brands start to differentiate
Competitive Strategies
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- High-end sub-brand
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- Figure 22: Lynk & Co 01
- Figure 23: WEY VV7
- S&E strategy
- Go autonomous
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- Figure 24: Definition of level 0-5 autonomy
- Down to earth
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- Figure 25: Land Rover Weibo posts
Who’s Innovating?
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- Establish self-owned lifestyle media channel
- Use VR as an assistant
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- Figure 26: Registration page of Volvo ‘Jiadao’
- Event marketing
- Unconventional car sharing
- Spoiler to the market
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- Figure 27: CITY eTAXI
The Consumer – What You Need to Know
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- First-time car buyers make decisions faster
- RMB 20,000 more in budget in the final purchase stage
- Brand-owned media channels are critical
- Family theme to be added in test drives
Car Purchasing Schedule
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- 21% of current car owners are considering buying another car
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- Figure 28: Car purchasing plan of current car owners, July 2017
- First-time car buyers are quicker at decision-making
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- Figure 29: Car purchasing plan, by decision-making stage and car buyer groups, July 2017
Car Price
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- RMB 150,000-200,000 remains the most popular price range
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- Figure 30: The price range of cars planning to purchase, July 2017 vs July 2016
- Average target price remains on a high level
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- Figure 31: Average target price, 2014-17
- Target price increases along with the decision-making process
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- Figure 32: Target price range, by car purchasing schedule, July 2017
Online Information Channel
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- Brands’ websites and WeChat accounts are critical in final decision-making
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- Figure 33: Online information channel, by car purchasing stage, July 2017
- Dynamic sorting habits of different car buyer groups
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- Figure 34: Online information channel, by car buyer groups, July 2017
- Tier one city car buyers more likely to go for unconventional channels
- Females value social networks more than males
Influencing Factors
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- Tier two and three city car buyers are more practical
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- Figure 35: ‘Very important’ car purchasing influencing factors, by city tier, July 2017
- Luxury car owners value driving experience
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- Figure 36: Gap between luxury car owners and other car buyers (benchmark) on the claim rates of ‘very important’ influencing factors, July 2017
- Technology equipment outweighs word of mouth in the final stage
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- Figure 37: Claim rates of ‘very important’ on selected factors, by car purchasing stage, July 2017
Out-of-home Media Exposure
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- More likely to remember an ad when in a relaxed mood
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- Figure 38: Occasions see auto ads that can be clearly remembered, July 2017
- Target female car buyers at specific occasions
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- Figure 39: Gap between females and males (as benchmark) on occasions see auto ads that can be clearly remembered, July 2017
- Out-of-home ads work better at early car purchasing stage
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- Figure 40: Numbers of online and out-of-home media channels referred to, by car purchasing stage, July 2017
Test Drive Preference
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- Family themes and technologies to be highlighted
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- Figure 41: Test drive preference, July 2017
- Males and females are looking for different test drive activities
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- Figure 42: Gap between females and males (as benchmark) on test drive preference, July 2017
- Prepare adventures for luxury car owners
Meet the Mintropolitans
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- Higher (luxury) car ownership
- MinTs make a decision faster
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- Figure 43: Car purchasing schedule in the final decision-making stage, by consumer classification, July 2017
- The target car price of MinTs is above RMB 250,000
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- Figure 44: The price range of cars planning to purchase, by consumer classification, July 2017
- MinTs check more information channels than Non-MinTs
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- Figure 45: Gap between MinTs and non-MinTs (as benchmark) in information channel preference at different stages, July 2017
- Car brand matters to MinTs
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- Figure 46: Gap between MinTs and non-MinTs (as benchmark) on the claim rate of ‘very important’ factors, July 2017
- Invest in advertising in airports
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- Figure 47: Occasions see auto ads that can be clearly remembered, by consumer classification, July 2017
- No significant gap between MinTs and Non-MinTs in test drive preference
Appendix – Market Size and Forecast
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- Figure 48: Total sales volume of new passenger cars, 2012-22
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Appendix – Market Segmentation
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- Figure 49: Total sales volume of SUVs, 2012-22
- Figure 50: Total sales volume of MUVs, 2012-22
- Figure 51: Total sales volume of basic passenger cars, 2012-22
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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