Author: Mintel Group Ltd.
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Car Purchasing Process - China - December 2019
Overview
 
What you need to know
In this Report, Mintel summarises the big picture of the current Chinese new passenger market and outlines the reasons for change.

This Report also covers consumers’ consideration process when purchasing cars and their preferences for car energy types. It also examines the information sources that consumers refer to when looking to buy cars and their test drive channels are covered as well. Mintel also discusses what cars mean to consumers and their attitudes to car purchasing. 

Covered in this report
The cars in this Report continue to be defined as passenger cars for private individuals. 

Passenger cars are divided into basic passenger cars (saloon cars), sport utility vehicles (SUVs), multipurpose vehicles (MPVs) and cross-type passenger cars.

Basic passenger cars (saloon cars): used for the transportation of personnel and luggage; the driver is usually the central focus, with an emphasis on driving and riding comfort. Saloon cars generally come in two-box configuration (hatchback) and three-box configuration (sedan).

SUV: combines the comfort of a saloon car with off-road capability, functional versatility and a two-box configuration (hatchback).

MPV: combines the comfort of the saloon car, the space of a tourer and can be used to transport goods like a van. These vehicles usually come in a two-box configuration. MPVs are targeted mainly at household users, and the majority are manufactured based on passenger car platforms.

Cross-type passenger vehicles: also known as minibuses. This type of vehicle can transport either passengers or goods, and is therefore known as a cross-type, usually single-box.

In terms of power source, new energy cars are cars with an unconventional power source such as electric power, or cars with more than one major power source such as with both an internal combustion engine and an electric engine.

Mintel defines surveyed respondents with one car or more than one car as car owners. 

Replacement car buyers are car owners who plan to buy a new car in one year. 

Additional car buyers are car owners who already have cars and want to buy an additional one. 

First-time car buyers are defined as no-car respondents who plan to buy a new car in one year.

Excluded
Commercial vehicles are primarily used for moving freight or goods. 

Multiple passenger carriers which are usually designed/purpose-built for fare payers, such as taxis.

Mintel divides consumers into three groups based on their monthly household income (MHI) and residential city.

FIGURE 1: Definition of different monthly household income groups, by city tier
 
| Sample size | Tier one cities | Tier two and three cities
Low MHI | 929 | MHI = RMB5,000-17,999 | MHI = RMB5,000-13,999
Middle MHI | 921 | MHI = RMB18,000-23,999 | MHI = RMB14,000-19,999
High MHI | 1,150 | MHI >= RMB24,000 | MHI >= RMB20,000

Source: Mintel

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