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Passenger Vehicle Market in China 2016-2020

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.

Key vendors

  • BAIC Group
  • Changan Automotive
  • Dongfeng Motor
  • FAW
  • Geely
  • SAIC Motor
Other prominent vendors
  • Brilliance Auto
  • BYD Auto
  • Chery
  • GAC (Guangzhou Automobile Corp.)
  • GM China
  • Great Wall
  • Volkswagen China
Market driver
  • High adoption of electric vehicles to provide new business opportunities
  • For a full, detailed list, view our report
Market challenge
  • Increasing cost pressure on OEMs from demand side
  • For a full, detailed list, view our report
Market trend
  • OEMs to focus on new product development and strong product portfolios to secure market share
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

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. "

Companies Mentioned

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.

  • Executive summary
    • Highlights
  • Scope of the report
    • Report coverage
    • Definitions of products and market
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
  • Value chain
    • Table Value chain of passenger vehicle market in China
    • Table Component manufacturers' revenue segmentation in China 2015
  • Market landscape
    • Overview
      • Table Passenger vehicle market in China 2015-2020 (millions of units)
    • Five forces analysis
  • Market segmentation by propulsion type
    • Passenger vehicle market in China market segmentation by propulsion type
      • Table Passenger vehicle market in China by propulsion 2015-2020
      • Table Passenger vehicle market in China by propulsion 2015-2020 (millions of units)
    • ICE passenger vehicle market in China
      • Table ICE passenger vehicle market in China 2015-2020 (millions of units)
    • Electric and hybrid passenger vehicle market in China
      • Table Electric and hybrid passenger vehicle market in China 2015-2020 (millions of units)
  • Market segmentation by vehicle type
    • Passenger vehicle market in China by vehicle type
      • Table Passenger vehicle market in China by vehicle type 2015-2020
    • Sedan and small car market in China
      • Table Sedan and small passenger vehicle market in China 2015-2020 (millions of units)
      • Table Best-selling sedans and small cars in China 2015
    • SUV/crossover market in China
      • Table SUV/crossover vehicle market in China 2015-2020 (millions of units)
      • Table Top sold SUVs in China 2015
    • MPV market in China
      • Table MPV market in China 2015-2020 (millions of units)
      • Table Top MPV models sold in China 2015
    • Luxury car market in China
      • Table Luxury car market in China 2015-2020 (millions of units)
  • Market drivers
    • Low vehicle per capita and high rural to urban migration to offer an attractive passenger vehicle market
      • Table Chinese population split by age group 2015 and 2050 (years)
      • Table Urban population and disposable income in China 2015-2020
      • Table Chinese vehicle demand based on purchase pattern 2011-2016
      • Table Vehicle demand based on purchase pattern for key countries 2015
      • Table China's disposable income per capita and vehicle per capita per 1,000 people 2015- 2020
    • High adoption of electric vehicles to provide new business opportunities
      • Table Trend in Li-ion price index 2011-2020
      • Table Current governing emission norms in China 2015
      • Table Annual emission comparisons
      • Table Electric vehicle sales in China 2015-2020 (millions of units)
    • Strong profit margins to attract higher investments by domestic and international OEMs
      • Table Profitability and capacity utilization in Chinese automotive industry 2005-2015
      • Table Capacity expansion of key Chinese OEMs 2011-2016 (thousands of units)
    • Rapid growth expected from Tier 3, 4, and 5 cities
      • Table Comparisons of passenger car sales by Tier 1-5 cities in China 2014-2015
      • Table Estimated contribution of passenger car sales of tier cities 2015-2020
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Increasing cost pressure on OEMs from demand side
      • Table Average monthly wages in China 2010-2015 ($)
    • Economic slowdown in China
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • OEMs to focus on new product development and strong product portfolio to secure market share
      • Table New product launches by vehicle type of key Chinese OEMs 2014-2016
    • Digitalization of China's automotive industry
      • Table New car sales in China through e-commerce channel 2014-2015 (thousands of units)
    • Domestic OEMs to capture higher market share than international OEMs
      • Table Market share of domestic and international OEMs 2015-2020
      • Table Market share trend of key international OEMs 2015-2020
      • Table Market share trend of key domestic OEMs 2015-2020
    • China to become testing ground for autonomous vehicles
    • OEMs to adopt localization to push luxury vehicles by reducing the cost
  • Vendor landscape
    • Competitive benchmarking
      • Table China passenger vehicle market share 2015
    • Other prominent vendors
  • Key vendor analysis
    • BAIC Group
    • Changan Automotive
    • Dongfeng Motor
    • FAW
    • Geely
    • SAIC Motor
  • Appendix
    • List of abbreviations
  • Explore Technavio

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