Table of Contents
Executive Summary
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- The market
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- Figure 2: Best- and worst-case forecast of the market volume of SUVs, China, 2013-23
- Figure 3: SUV sales volume share, by segment, China, 2016-18
- Companies and brands
- Only Haval lost share among the top 10 brands
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- Figure 4: Top 10 brands in SUV sales, by sales volume, 2016-18
- Entry price further lowered
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- Figure 5: Starting price of top 10 best-selling SUV models, 2018
- Localising manufacture and more electric models
- Innovation highlights: extended range electric SUVs and more pet-friendly features
- The consumer
- SUV ownership increased significantly in tier one cities
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- Figure 6: Type of cars owned in tier one cities*, November 2018 vs December 2017
- Tier two and below: compact cars still lead in ownership but SUV is catching up
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- Figure 7: Type of cars owned, in tier two or lower cities*, November 2018 vs December 2017
- Mid/full-size SUVs most wanted in tier one cities
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- Figure 8: Type of car planning to buy, in tier one cities*, November 2018 vs December 2017
- German brands become more popular
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- Figure 9: Favourite SUV brand, in tier one cities*, 2019 vs 2018
- Japanese brands are good at converting buyers in the purchasing journey
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- Figure 10: Brand intended to buy, by intended SUV buyers at different purchasing stages, November 2018
- SUVs need better fuel consumption levels
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- Figure 11: Unsatisfied point for SUV owners, November 2018
- Optimal pricings for SUVs
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- Figure 12: Optimal prices of different types of SUVs based on Price Sensitivity Analysis, November 2018
- What we think
Issues and Insights
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- What’s the future for domestic brands?
- The facts
- The implications
- Fuel consumption challenge
- The facts
- The implications
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- Figure 13: Comparison between hybrid versions and regular versions
- Make driving compact SUVs a lifestyle for females
- The facts
- The implications
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- Figure 14: Jeep compass commercial
The Market – What You Need to Know
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- SUV market showed resilience
- SUV competition set to intensify
Market Size, Segmentation and Forecast
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- Annual sales set to linger around 10 million units over next five years
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- Figure 15: Best- and worst-case forecast of the market volume of SUVs, China, 2013-23
- Trading up for mid/full-size SUVs in replacement/second car purchase
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- Figure 16: SUV sales volume share, by segment, China, 2016-18
Market Factors
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- Elimination of foreign share limit for joint ventures
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- Figure 17: Foreign share limit cancellation plan
- Rising fuel price creates demand for new energy SUVs
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- Figure 18: Fuel price per litre, 2015-18
- Figure 19: Volvo XC 60 Hybrid and Porsche Macan
- Consumers’ spending preferences
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- Figure 20: Financial confidence, 2017-19
Key Players – What You Need to Know
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- Top ten is gaining more market share
- Compete by giving consumers more choices
- Innovations in the car usage experience
Market Share
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- Market becoming more consolidated
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- Figure 21: Top 10 brands in SUV sales, by sales volume, 2016-18
- Key players in 2018
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- Figure 22: Haval F5 and H6
- Figure 23: Geely S1, X3 and Emgrand GS
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- Figure 24: T-ROC, Tayron and Tharu
Competitive Strategies
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- Entry price of SUVs lowering further
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- Figure 25: Starting price of top 10 best-selling SUV models, 2018
- Domestic production of high-end models
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- Figure 26: Domestic produced models
- Electrification
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- Figure 27: Pure electric models coming in 2019
- Figure 28: Plug-in hybrid vehicles
Who’s Innovating?
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- Extended range electric SUVs
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- Figure 29: CHJ Leading Ideal One
- Figure 30: Interior design of CHJ Leading Ideal One
- Noise-cancelling technology
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- Figure 31: Dog kennel from ford
- Popscape
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- Figure 32: An Airstream trailer towed by a Tesla Model X
The Consumer – What You Need to Know
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- Ownership and purchase intention remain strong
- Watch out for German and Japanese brands
- Fuel consumption remains the biggest frustration
- Optimal pricing suggests room for price increase
Type of Cars Owned and Planning to Purchase
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- The ownership of SUVs surged in 2019
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- Figure 33: Type of cars owned in tier one cities*, November 2018 vs December 2017
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- Figure 34: Type of cars owned, in tier two or lower cities*, November 2018 vs December 2017
- Future purchase intention of SUVs remains strong
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- Figure 35: Type of car planning to buy, in tier one cities*, November 2018 vs December 2017
- Non-first time car buyers switching to bigger, premium cars
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- Figure 36: Type of car owned and planning to buy, by non-first time car buyers, November 2018
- Potential buyers for mid/full-size SUVs
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- Figure 37: Type of car planning to buy – mid/full-size SUV, by selected demographics, November 2018
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- Figure 38: Type of car planning to buy – mid/full-size SUV, by city tiers, November 2018
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- Figure 39: Type of car planning to buy – Select items, by type of car buyers, November 2018
Favourite SUV Brands
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- German brands become more popular
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- Figure 40: Favourite SUV brand, by tier one cities, 2019 vs 2018
- Favourite brands among SUV owners and intended buyers
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- Figure 41: Favourite SUV brand – word cloud, November 2018
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- Figure 42: Favourite SUV brand, November 2018
- Brands that consumers intend to buy
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- Figure 43: Brand that consumers intend to buy, November 2018
- Figure 44: Gap between favourite brand and brand intending to buy, November 2018
- Japanese brands are good at converting buyers in the purchasing journey
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- Figure 45: Brand intended to buy, by intended SUV buyers at different purchasing stages, November 2018
Dissatisfaction about SUVs
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- Fuel consumption is still the biggest complaint
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- Figure 46: Unsatisfied point for SUV owners, November 2018
- Group most sensitive to fuel consumption
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- Figure 47: Unsatisfied point for SUV owners – monthly household income, November 2018
Perceptions of SUVs
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- Perceptions reveal popularity of compact SUVs as a first car
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- Figure 48: Correspondence Analysis – SUV advantages, Nov 2018
- Lifestyle pursuers of compact SUVs
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- Figure 49: Perceptions of compact SUVs – can reflect my lifestyle, by gender and age, November 2018
Optimal Pricing of SUVs
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- Methodology
- Ideal SUV price according to consumers
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- Figure 50: Price sensitivity – compact SUVs optimal price, November 2018
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- Figure 51: Price sensitivity – compact SUVs threshold prices, November 2018
- Compact SUVs over RMB200,000 still stand a chance
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- Figure 52: Price points that are considered as expensive but still would consider buying, by monthly household income, November 2018
- Optimal price for mid-size SUVs
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- Figure 53: Price sensitivity – mid-size SUVs optimal price, November 2018
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- Figure 54: Price sensitivity – mid-size SUVs threshold prices, November 2018
- Ideal price of full-size SUVs according to consumers
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- Figure 55: Price sensitivity – full-size SUVs optimal price, November 2018
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- Figure 56: Price sensitivity – full-size SUVs threshold prices, November 2018
- Pricing strategies for SUVs
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- Figure 57: Optimal prices for SUVs, November 2018
Meet the Mintropolitans
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- MinTs are potential mid-size SUV buyers
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- Figure 58: Type of car owned and planning to buy, by consumer classifications, November 2018
- More favourable towards German brands
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- Figure 59: Brand that consumers intend to buy, by consumer classifications, November 2018
- MinTs are more demanding about vehicle dynamics and interior materials
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- Figure 60: Unsatisfied point for SUV owners, by consumer classifications, November 2018
Appendix – Market Size and Forecast
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- Figure 61: The market volume of SUVs, 2013-23
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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