About the Passenger Vehicle Market in China
China is leading the global automotive industry since 2009, when it overtook the US in terms of total vehicle production. China represents one of the fastest-growing auto industries and is one of the key regions for original equipment manufacturers (OEMs) across the globe. Passenger cars are a key segment of the automotive industry in China. This segment constituted more than 80% of the total automotive industry (passenger cars commercial vehicles). The year 2015 recorded sales of 21.15 million vehicles in China, led by sedans and small cars, followed by SUV/crossovers, MPV, and luxury car segments, respectively.
Technavio’s analysts forecast the Passenger Vehicle Market in China to grow at a CAGR of 5.39% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the Passenger Vehicle Market in China for 2016-2020. Technavio's report, Passenger Vehicle Market in China 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Passenger Vehicle Market in China 2016-2020
Technavio recognizes the following companies as the key players in the Passenger Vehicle Market in China: BAIC Group, Changan Automotive, Dongfeng Motor, FAW, Geely, and SAIC Motor.
Other Prominent Vendors in the market are: Brilliance Auto, BYD Auto, Chery, GAC (Guangzhou Automobile Corp.), GM China, Great Wall, and Volkswagen China.
Commenting on the report, an analyst from Technavio’s team said: “One among many trends driving market growth in China is that OEMs to focus on new product development and strong product portfolio to secure market share. The Chinese automotive industry is highly segment oriented, where certain segments outperform the overall automotive industry. Therefore, one of the key profitability criteria for OEMs hinges on the segment focus approach. The SUV, electric vehicle, and luxury car segment are registering strong growth in China. As the market is segment oriented, product portfolios for these segments remain paramount in obtaining a competitive advantage in the highly fragmented Chinese automotive industry.”
According to the report, a key growth driver is the high adoption of electric vehicles which is expected to provide new business opportunities. Electric vehicles are considered the next stage of evolution in automobiles. Currently, electricity is considered a substitute propulsion technology. Electric vehicles are one of the most commercially viable alternatives to conventional gasoline or diesel vehicles in terms of technology. But market dynamics remain complex and are governed by various factors, such as support infrastructure, government regulations, and the high cost of manufacturing electric vehicles. These factors are influencing the commercial prospects of these vehicles in China.
Further, the report states that one challenge that could hamper market growth is the increasing cost pressure on OEMs from the demand side. "
BAIC Group, Changan Automotive, Dongfeng Motor, FAW, Geely, SAIC Motor, Brilliance Auto, BYD Auto, Chery, GAC (Guangzhou Automobile Corp.), GM China, Great Wall, Volkswagen China.
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