The Chinese prefer local crossovers and electric cars

21 August 2017

In the first half of 2017 in China, increased sales of SUVs and EVS

For the first half of 2017, production and sales of vehicles in China (by SAAM) amounted to 13 million 526 thousand and 13 million 354 thousand, respectively, 4.6% and 3.8% higher in annual terms over the same period last year.

Most popular 2017 Chinese sedan Buick Excelle GT

Production and sales of passenger cars in the first half amounted to 11 million 483 thousand and 11 million 253 thousand, respectively, 3.2% and 1.6% higher year on year, but 1.4 and 2.2 percentage points below the overall growth of the industry and the market. With regard to the distribution of cars by types, compared with the same period last year, grew only SUV segment (SUV) – 18.9% in production and 16.8% of sales, but all the other market segments experienced a decline. Thus, the production and sale of ordinary passenger cars decreased by 1.8% and 3.2%, respectively. Production and sales of mini-vans (MPV) decreased by 12.8% and 15.8%, respectively. The situation with compact vans was even worse – their output fell 32.7%, while sales – by 25.3%. The production of "privileged" cars with an engine capacity of 1.6 liters and below has reached 7 million 697 thousand, which is 2.6% less than last year, while sales of 3.0% worse, while the market share of passenger cars was 68.4%.

Manufacture and sale of commercial vehicles for the first half of the year reached 2 million 43 thousand and 2 million 101 thousand, respectively, 13.8% and 17.4% yoy higher than last year. In the bus segment, their production decreased by 15.3%, while sales by 14% compared to the previous year. For cars these figures, on the contrary, increased by 18.7% and 22.6%.

Crossover Haval (Great Wall) H6 is at the peak of demand the first year

Total car sales of 10 brands in the Chinese market for the first half of the year reached 11 million 811 thousand that is 4% higher yoy. Accordingly, sales of Top 10 brands represented 88.5% of the total volume of the issue.

According to customs data, in June, the total import of cars in China in the first six months reached 589 thousand, that is by 24.2% more than in the previous year. Accordingly, the exports reached 450,000 units, which is 29.8 per cent more than in the previous year.

The sympathy of the Chinese families are given a mini van Wuling Hongguang S series

Sales of passenger cars of Chinese brands for the first half of the year reached 4 million 940 thousand, which is 4.3% more than last year. Their market share increased by 1.1 percentage points compared with the previous year, and amounted to 43.9%. In particular, sales of Chinese passenger cars (especially sedans and hatchbacks) amounted to 1 million 64 thousand, which is 0.8% higher than a year earlier, and their market share increased by 0.8 percentage points to 19.7 percent. Sales of SUVs (SUVs and crossovers) of Chinese brands reached 2 million 700 thousand, which is 24,4% more than in the previous year. Their market share increased by 3.6 percentage points to 59.6 per cent. Sales of MPVs (mini-vans) Chinese brands amounted to 859 million, which is 20.8% more than last year, which accounted for 85% of the total MPV sales in China amounted to 5.4 percentage points from the market.

Most popular electric car in China was the kid Zhidou D2 price 49 000 yuan into account the benefits (price without benefits – has 158 800 yuan) 

In conclusion, let us mention that the manufacture and sale of vehicles on alternative fuels (i.e. electric cars and hybrids) for the first half reached 212 thousand and 195 thousand, respectively, an increase of 19.7% and 14.4% yoy. Specifically, the production and sales of battery electric vehicles (BEV) has reached 175 thousand and 160 thousand, an increase of, respectively, 30.4% and 26.2% yoy. For a PHEV (rechargeable hybrids) these figures were, respectively, 37 and 35 thousand thousand, or 14.4% and 19.7% higher year on year.

Thus, the Chinese automobile industry is quite continues to rise to new heights, although some structural changes still occur. So the traditional sedans and hatchbacks frankly give the market to crossovers and mini-vans of domestic brands. Besides the main interest of local consumers, driven by taxes in downsizing segment from 1.2 to 1.6 liters displacement. Due to significant commercial and tax breaks for buyers of electric vehicles and hybrids, as well as the upcoming 2018 and 2020 the government's draconian measures with the growth of mandatory quotas for the issuance and sale (from 8 to 12% of sales for each automaker) of such vehicles on "alternative energy sources" their growth today, China is the highest. Even the rooms in the megacities electric vehicles are given free of charge, despite the fact that the usual car owner – the inhabitant of the metropolis may redeem room for a lot of money (often more than the cost of the car itself) or win at auction.   

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