Automobile
© 2017 Beyond Summits
2
Summary:
• In 2016, China’s automobile market apparent consumption increased with rebounding growth
rate.
• Affected by factors such as purchase tax preferential policies, China’s auto production and
sales volume also broke records in 2016, ranking first in the world for eight consecutive years.
• Among the four types of current domestic passenger cars, Chinese consumers particularly
preferred SUV. The Ministry of Finance’s policy to reduce passenger vehicle purchases tax of
1.6 liters or less has also boosted sales of this type of passenger cars.
• Chinese government has attached great importance to the development of new energy
vehicles and has introduced a series of policies and measures to promote the development of
new energy vehicles, including high subsidies on the purchase price of new energy vehicles
and unlimited open-ended policies, which have further boosted the production and sales of
new energy vehicles.
© 2017 Beyond Summits
3
Summary:
• Automobile industry was a male-dominated industry with a larger proportion of groups aging
between 25 and 34, among which, people with a bachelor’s degree accounted for the largest
proportion.
• Groups in automobile industry were highly related to male, high education, tourism and real
estate. People focusing on luxury car were more lower in age.
• The traditional car information channels are no longer popular, and consumers are increasingly
inclined to obtain car-related information from digital media. According to the survey,
professional automotive websites and forums such as Autohome are the most popular
information channels today, with 58% of respondents using such channels.
© 2017 Beyond Summits
4
In 2016, China’s automobile apparent consumption increased with rebounding growth rate.
Source: China Automotive Industry Association, China Customs Note: Apparent consumption= output + import - export
© 2017 Beyond Summits
Year Output Apparent
Consumption Export Import
2009 13.79 13.86 0.35 0.42
2010 18.26 18.53 0.54 0.81
2011 18.42 18.63 0.82 1.04
2012 19.27 19.41 0.99 1.13
2013 22.12 22.39 0.92 1.19
2014 23.72 24.25 0.90 1.42
2015 24.50 24.85 0.76 1.10
2016 28.12 28.33 0.83 1.04
China’s Automobile Supply & Demand (million)
5
18.26 18.42
19.27
22.12
23.72 24.50
28.12
18.06 18.51 19.31
21.98 23.49
24.60
28.03
32.4%
0.8%
4.6%
14.8%
7.3%
3.3%
14.5%
2.5% 4.3%
13.9%
6.9%
4.7%
13.7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5
10
15
20
25
30
2010 2011 2012 2013 2014 2015 2016
China’s Automobile Production & Sales(million)
Output Sales Output YoY Sales YoY
Source: China Automotive Industry Association
© 2017 Beyond Summits
Affected by factors such as purchase tax preferential policies, China’s auto production and sales
volume also broke records in 2016 at over 28 million vehicles, ranking first in the world for eight
consecutive years.
6
In 2016, for the production output of China’s automobiles, passenger cars accounted for 86.8%,
while commercial vehicles accounted for 13.2%.
Source: China Automotive Industry Association
© 2017 Beyond Summits
Passenger Car, 86%
Commercial Car, 14%
China’s Automobile Output in 2016
7
13.90 14.49
15.52
18.09
19.92 21.08
24.42
13.76 14.47
15.50
17.93
19.70 21.15
24.38 33.8%
4.2% 7.2%
16.5%
10.1%
5.8%
15.5%
33.2%
5.2% 7.1%
15.7%
9.9%
7.3%
14.9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5
10
15
20
25
30
2010 2011 2012 2013 2014 2015 2016
China’s Passenger Car Production & Sales(million)
Output Sales Output YoY Sales YoY
In 2016, the passenger vehicle market in China represented a booming trend in both production
and sales. Among them, the volume of passenger car production was 24,421,000, an increase of
15.5% year-on-year.
Source: China Automotive Industry Association
© 2017 Beyond Summits
8
Among the four types of current domestic passenger cars, Chinese consumers particularly
preferred SUV. In 2016, the domestic sales of SUVs were 9.05 million, a year-on-year increase of
44.6%.
Source: China Automotive Industry Association SUV=Suburban Utility Vehicle MPV=Multiple Purpose Vehicle
© 2017 Beyond Summits
12.15
9.05
2.50
0.68
3.4%
44.6%
18.4%
-37.8%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
0
2
4
6
8
10
12
14
Sedan SUV MPV Crossover
China’s Passenger Car Sales Distribution and Sales Growth Rate (million)
Sales Sales YoY
9
In 2016, the Ministry of Finance’s policy to reduce passenger vehicle purchases tax of 1.6 liters or
less had also boosted the sales of this type of passenger cars.
Source: China Automotive Industry Association
© 2017 Beyond Summits
60
65
70
75
80
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Proportion of Sales of Passenger Cars with a Capacity under 1.6 Liters
2014 2015 2016
10
In 2016, the sales of self-owned brand cars in China have not been very satisfactory, with a market
share of only 18.2%, which has shrunk from the previous year.
Source: Souhu Auto
© 2017 Beyond Summits
20.2%
26.4%
19.8%
16.4%
10.5%
6.7%
18.2%
30.7%
20.4%
16.8%
10.0%
4.0%
0%
10%
20%
30%
40%
Chinese Brands Germany Brands Japanese Brands American Brands South Korean Brands Others
Market Share of China & Foreign Branded Passenger Cars 2015 vs 2016
2015 2016
11
Source: CPAC
In 2016, SAIC Volkswagen ranked first in the sales of passenger vehicle companies in China,
followed by SAIC-GM and FAW-Volkswagen. It was worth noting that Geely Automobile entered
the top ten in 2016.
2,000.2
1,880.0
1,872.4
1,427.9
1,149.8
1,142.0
1,117.9
968.9
944.0
799.2
SVW-Volkswagen
SGM
FAW-Volkswagen
SAIC-GM-Wuling
Chang An
Hyundai
Nissan
GWM
Ford
Geely
Top 10 in Passenger Car Sales in 2016 (thousand)
© 2017 Beyond Summits
12
Source: CPAC
In 2016, Volkswagen’s sales were far higher than other brands in all passenger vehicle brands,
which was 3,006,215. It was worth noting that Changan, Hafu, Baojun and other Chinese self-
owned brands have great potential to catch up.
© 2017 Beyond Summits
3,006,215
1,229,804
1,187,667
1,149,820
1,138,125
1,064,686
1,017,521
948,681
938,019
760,292
Volkswagen
Buick
Toyota
Changan
Hyundai
Honda
Nissan
Ford
Haval
SGMW
Top 10 Passenger Car Brands in 2016 (unit)
13
Source: CPAC
© 2017 Beyond Summits
Top 10 Passenger Car Models in 2016 (unit)
Wuling Rongguang 650,018
Haval H6 580,683
Lavida 478,699
Buick Excelle 370,370
SGMW 730 370,169
Buick Bluebird Sylph 367,979
Jetta 348,437
Sagitar 341,331
Trumpche GS4 321,555
SGMW 560 307,360
Top 10 Sedan Models in 2016 (unit)
Lavida 478,699
Buick Excelle 370,370
Buick Bluebird Sylph 367,979
Jetta 348,437
Sagitar 341,331
Corolla 307,360
Escort 296,867
Santana 282,815
Elantra 253,804
Emgran EC7 223,781
In 2016, Wuling Rongguang and Lavida still ranked first in passenger car models and sedan
models respectively.
14
Source: CPAC
© 2017 Beyond Summits
Top 10 SUV Models in 2016 (unit)
Haval H6 580,683
Trumpche GS4 326,906
SGMW 560 321,555
Envision 275,383
Tiguan 240,510
Changan CS75 209,353
Refine S3 197,947
Haval H2 196,926
Honda CR-V 180,319
X-Trail 180,202
Top 10 MPV Models in 2016 (unit)
Wuling Rongguang 650,018
SGMW 730 370,169
Honor 152,607
Jing Koo M30 121,153
Null 118,185
Yinxiang H3 106,634
Fengguang 330 98,039
Lingzhi 90,700
GL8 79,600
Fengguang 730 70,634
In 2016, Haval H6 and Wuling Rongguang still ranked first in SUV and MPV respectively, showing
that Chinese self-owned branded cars have great influence in domestic market.
15
In 2016, the production and sales volume of China's commercial vehicle market rose for the first
time after falling for two consecutive years, reaching 3.488 million units and 3.651 million units
respectively, an increase of 8% and 5.8% from 2015.
Source: China Automotive Industry Association
© 2017 Beyond Summits
4,368
3,934 3,748 4,032
3,803
3,424
3,698
4,304
4,033 3,811
4,055 3,791
3,451 3,651
28.2%
-9.9%
-4.7%
7.6%
-5.7%
-10.0%
8.0%
29.9%
-6.3% -5.5%
6.4%
-6.5% -9.0%
5.8%
-20%
-10%
0%
10%
20%
30%
40%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2010 2011 2012 2013 2014 2015 2016
China’s Commercial Car Production & Sales (thousand)
Output Sales Output YoY Sales YoY
16
Chinese government has attached great importance to the development of new energy vehicles
and has introduced a series of policies and measures to promote the development of new energy
vehicles, including high subsidies on the purchase price of new energy vehicles and favorable
policies like no traffic restrictions based on even- and odd-numbered license plates, which have
further boosted the production and sales of new energy vehicles.
Source: China Automotive Industry Association
© 2017 Beyond Summits
Output in 2015 Sales in 2016 Output in 2016 Sales in 2016
0.34 million
0.52 million
0.33 million
0.51 million China’s New-energy Vehicle Production
& Sales 2015 vs 2016 (unit)
17
In 2016, the proportion of sales of pure electric vehicles in new energy vehicles exceeded 80%,
which was mainly due to the country’s significantly tilted policies on subsidy, traffic restrictions, and
restrictions on purchase of pure electric vehicles.
Source: China Automotive Industry Association
© 2017 Beyond Summits
Pure Electric Passenger Car, 50.7%
Pure Electric Commercial Car, 30.0%
Plug-in Passenger Car, 15.6%
Plug-in Commercial Car, 3.7%
China’s New-energy Car Sales in 2016
18
The easiness for applying the license plate was the primary factor to purchase new-energy car in
the past. Low purchase and use costs and environmental protection are important reasons for
future purchases.
Source: CTR,Research Report of New-energy Car Consumer
© 2017 Beyond Summits
The primary factor of Choosing
New-energy Car
No odd-even car/no restriction for number plate
82.3% Easy to apply the license plate
5.7%
4% Environmental compatibility
30.0%
24.4%
18.9%
16.7%
14.4%
12.2%
12.2%
8.9%
8.9%
Low cost of purchasing andusing
Environmental protection
Easy to get license plate
More mature technology
No odd-even carban/restriction for number plate
Convenient to use
Economival
Limit of license plate
Good Driving Feeling
The Reason of Purchasing New-energy Car in the Future
19
Automobile industry was a male-dominated industry with a larger proportion of groups aging
between 25 and 34, among which, people with a bachelor’s degree accounted for the largest
proportion. Moreover, the personas in the whole auto industry, new-energy car industry, new car
industry had not much difference.
Source: 360 Marketing Research Institute,Research Report of Automobile Industry
© 2017 Beyond Summits
68.8%
31.4%
8.7%
26.5%
52.3%
10.9%
1.6%
13.0%
35.4%
44.8%
6.8%
19.3%
8.9%
8.6%
8.5%
8.5%
70.6%
29.4%
8.5%
22.6%
54.8%
12.1%
2.1%
11.4%
34.5%
46.7%
7.4%
20.9%
9.8%
7.1%
8.2%
7.8%
75.0%
25.0%
7.4%
25.0%
55.5%
10.7%
1.4%
11.4%
35.3%
46.2%
7.1%
24.4%
8.8%
6.5%
8.3%
8.1%
Male
Famale
<18
19-24
25-34
35-49
≥50
Middle school and lower
High school
Undergraduate
Postgraduate and above
Automobile
Ads
IT
Government
Healthcare
Personas in Automobile Industry
Whole Auto Industry New-Energy Car New Car
20
Groups in automobile industry were highly related to male, high education, tourism and real estate.
People focusing on luxury car were more lower in age. Females paid more attention to small cars.
China's MPVs were mainly functional (such as delivering goods) and are relatively low-end.
Source: 360 Marketing Research Institute,Research Report of Automobile Industry
© 2017 Beyond Summits
Mini car Small car
Middle car
Middle-large car Compact SUV
MPV
Female
18 years old and below
19-24 years old
25-34 years old 35-49 year old
High school
Undergraduate
Advertisement
IT
Graduate and above
Healthcare
Real estate
Wholesale
Male Travel
Media
Groups’ Persona in Automobile Industry
Luxury car
Junior middle school and below
21
The traditional car information channels are no longer popular, and consumers are increasingly
inclined to obtain car-related information from digital media. According to the survey, professional
automotive websites and forums such as Autohome are the most popular information channels
today, with 58% of respondents using such channels.
Source: Mckinsey&Company, Survey on Chinese Automobile Consumers, 2016
© 2017 Beyond Summits
61% 65%
42%
7%
25%
13% 15%
54% 58%
22%
33%
21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Newspaper/Magazine Relatives/Friends/Colleagues ProfessionalWebsites/Forums
Social Network/Community Auto Manufacturers'OfficialWebsites
Online Ads
Channels Used by Chinese Consumers When Buying Automobile
2011 2016
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