Automobile · 2018. 4. 4. · 2 Summary： • In 2016, China’s automobile market apparent consumption increased with rebounding growth rate. • Affected by factors such as purchase

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.


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.


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


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


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%.



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)


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.



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


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.



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


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)


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.


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


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


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.



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)


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.



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.



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


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


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


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


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

We have collaborating offices in

· SH · HK · TYO · SEL · SYD · MOS · BER · LON · PAR · ROM · NYC · SF ·

Visit our website to learn more: https://beyondsummits.com/

Your Global All-media Marketer

Documents

Automobile · 2018. 4. 4. · 2 Summary： • In 2016, China’s automobile market apparent consumption increased with rebounding growth rate. • Affected by factors such as purchase