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SUV Sales Boom in Chinese Auto Market

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Published on : Nov 23, 2015

The ongoing auto show in the Guangdong province of China is exhibiting increasing demand from Chinese customers for sport-utility-vehicles (SUV), as stated by a media report recently.

The participants of the Guangzhou Auto show are both domestic and foreign players; the auto show which is one of the biggest auto shows in China has been putting the spotlight on SUVs, as reported by the People’s Daily.

As stated by the Managing Director of Automotive Foresight, Yale Zhang, several auto brands such as the Haval H7 of the Great Wall Motor Co. and Ford’s Everest are shifting focus to manufacture larger SUVs, especially after the one-child policy was scrapped in China. The executive further stated that, many families are shifting from sedans to SUVs due to the comfort, safety, and bigger space of the latter over the former. 

This is because, for a family with children, owing a SUV is a smart bet than owning a sedan. Even for families with two kids¸ SUV is more appealing than a sedan. So the choice to own a SUV over a sedan is well reasoned and its popularity is growing.

Until the month of October, the sales of SUVs increased by 46% on a year-on-year basis for 2015 and 2015, for the broader market that displayed growth of 1.5%.

As stated by Automotive Foresight, which is a market research company, 32 new SUV models will be launched in China. In the interim, as stated by official data in China the car prices in China dropped by 3.4% in the first nine months of 2015, which outnumbered the 1.2% drop in the prices for overall passenger vehicles.

Carmakers such as Volkswagen have expressed interest to expand investments in the China auto market, with the plan to launch six new locally manufactured models in the next three to four years.