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Luxury Cars - China - June 2017

Published By :

Mintel

Published Date : Jun 2017

Category :

Machines

No. of Pages : N/A

It’s been a trend for luxury car brands to introduce compact models targeting young car buyers with the hope of boosting sales. This strategy works for customisable car models under big names with pleasing appearances. While for brands that are still cultivating the market, it is critical to reinforce the brand image of craftsmanship and authenticity.

Table of Content

OVERVIEW
What you need to know
Covered in this Report
Definition
Excluded

EXECUTIVE SUMMARY
The market
Figure 1: Best- and worst-case forecast of luxury cars sales volume, 2012-22
Companies and brands
Figure 2: Market share of luxury car brands, by sales volume, 2015 and 2016
The consumer
Brand as the first criterion
Figure 3: Luxury car definition, January 2017
Improving living quality while showcasing personal taste
Figure 4: Perceived reasons for purchasing luxury cars, January 2017
Lincoln stands out in perceived luxury level
Figure 5: Perceived level of luxury of car brands, January 2017
Brands to reinforce different features
Figure 6: Brand perception, average as benchmark, January 2017
Love at first sight
Figure 7: Attention on interior and exterior features, January 2017
What we think

ISSUES AND INSIGHTS
How are luxury cars defined in China?
The facts
The implications
How is Mercedes-Benz winning back the China market?
The facts
The implications
How to target young car buyers effectively?
The facts
The implications
Figure 8: Lexus GS X Yohji Yamamoto

THE MARKET – WHAT YOU NEED TO KNOW
Luxury cars have better sales record than conventional ones in China
Trading up for better living quality

MARKET SIZE AND FORECAST
Faster growth than the total new passenger car market
Figure 9: Sales volume and growth rate of luxury cars and total new passenger cars in China, 2011-16
Becoming the most important luxury car market
Figure 10: The US and China markets’ luxury car sales volume and share, 2012-16
Exceeding 5 million annual sales in 2022
Figure 11: Best- and worst-case forecast of luxury cars sales volume, 2012-22

MARKET DRIVERS
The trading up trend of car buyers
Figure 12: Car purchase price comparison of first-time and replacement car buyers, July 2016
Luxury brands introducing entry-level models
Figure 13: Mercedes-Benz Concept A Sedan in Shanghai Auto Show 2017
Purchasing a car to improve living quality

KEY PLAYERS – WHAT YOU NEED TO KNOW
Mercedes-Benz is taking over leadership again
The rivalry of tier two luxury car brands
Continuous investment into China market
Getting closer to young generation

MARKET SHARE
Mercedes-Benz is catching up in sales volume
Figure 14: Market share of luxury car brands, 2015 and 2016
Audi’s sales drop due to dealer crisis
Figure 15: Annual sales growth of luxury car brands, 2016 vs 2015
The rise of American luxury car brands
Distinct performance of Japanese car brands
Figure 16: Infiniti QX50 Concept in Shanghai Auto Show 2017
2017 is a critical year for Volvo
Figure 17: Sales volume of luxury car brands, 2016
Steadily developing Jaguar Land Rover
The bestselling ‘premium’ luxury brand Porsche

COMPETITIVE STRATEGIES
Control the cost through localised production
Figure 18: Luxury car brands that have domestically produced models
Introducing specific models catering to China market
Forging a stable brand/dealer relationship
Connecting younger generations
Figure 19: Key slogans of luxury car brands in the China market
Figure 20: Audi’s first answer on Zhihu
Figure 21: Eddie Peng X Volvo

WHO’S INNOVATING?
Marketing through livestreaming platforms
Showing technology innovations innovatively
Cross-category partnership

THE CONSUMER – WHAT YOU NEED TO KNOW
Brand and craftsmanship
Different reasons for purchase
American luxury car brands stand out
Highlighted features of different luxury car brands

LUXURY CAR DEFINITION
Brand over price
Figure 22: Luxury car definition, January 2017
Luxury car owners value the authenticity of brands
Figure 23: Luxury car definition, luxury car owners vs luxury car non-owners (as benchmark), January 2017
New generation value craftsmanship more
Figure 24: Claim rates of selected luxury car definition attributes, by age, January 2017

ATTITUDES TOWARDS LUXURY CAR PRICE
RMB 500,000 as a threshold
Figure 25: Perceived luxury car price, January 2017
Higher entry price perceived by luxury car owners
Figure 26: Perceived luxury car price, by luxury car owners and non-owners, January 2017
Females perceive luxury cars to be more expensive than males
Southern residents have a lower entry price of luxury cars
Figure 27: Perceived luxury car price, by region, January 2017

REASONS FOR PURCHASING LUXURY CARS
Living quality, taste and success
Figure 28: Perceived reasons for purchasing luxury cars, January 2017
Business owners from tier two and three cities more driven by status
Luxury car owners are less willing to (admit) showing off
Figure 29: Perceived reasons for purchasing luxury cars, by luxury car owners and non-owners, January 2017

LUXURY CAR BRAND AWARENESS
Porsche, Lincoln and Cadillac stand out
Figure 30: Perceived level of luxury of car brands, January 2017
Higher recognitions of luxury car owners
Figure 31: Gap between luxury car owners and non-owners on the claim rates of super-luxury, non-owners as benchmark, January 2017

LUXURY CAR BRAND PERCEPTIONS
Craftsmanship and safe as the top perceived features
Figure 32: Top mentioned features, January 2017
The competitive advantages of different car brands
Figure 33: Brand perception, average as benchmark, January 2017
Brand images of German car brands
Figure 34: Perception of German car brands, January 2017
Brand images of Land Rover, Jaguar and Volvo
Figure 35: Perception of British car brands plus Volvo, January 2017
Brand images of American car brands
Figure 36: Perception of American car brands, January 2017
Brand images of Japanese car brands
Figure 37: Perception of Japanese car brands, January 2017
Perceived advantages of different car brand origins
Figure 38: Perceptions of different origins of car brands, January 2017
More differentiation among luxury car owners
Figure 39: Perception of selected car brands, by car brand owners and non-owners, January 2017

ATTENTION ON EXTERIOR AND INTERIOR FEATURES
More about an overall feeling
Figure 40: Attention on interior and exterior features, January 2017
Northern consumers prefer a masculine design
Newlyweds value space the most
Luxury car owners care more about the materials used
Figure 41: Top five mentioned interior and exterior features, by luxury car owners and non-owners, January 2017

MEET THE MINTROPOLITANS
The devil is in the details
Figure 42: Luxury car definition, by MinTs and Non-MinTs, January 2017
An holistic brand experience matters
Figure 43: Perceived reasons for purchasing luxury cars, by MinTs and non-MinTs, January 2017
The expression of ‘this is my car’

APPENDIX – MARKET SIZE AND FORECAST
Figure 44: Total sales volume of luxury cars, 2012-22

APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

List of Table

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