Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Car Purchasing Process - China - October 2015

“Even though the car market in China is experiencing a slowdown of market growth, there are still many reasons (eg government support, people’s aspirations towards better lives and the purchasing power from low tier cities) for both manufacturers and consumers to believe that it will finally shrug off the difficulties.”
– Yujing Li, Senior Research Analyst

This report looks at the following areas:

  • Brands could promote new energy cars as fulfilling consumers’ daily transport needs
  • Encourage car owners’ second purchase through fulfilling their aspirations
  • What else can brands do to enhance competitiveness?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

          • The market
            • Figure 1: China total volume new passenger car sales forecast, 2010-20
          • Companies and brands
            • Figure 2: Leading companies’ market shares in the China car market, by volume, 2014-15 (till June)
          • The consumer
            • German brands are facing challenges, though they still dominate China car market
              • Figure 3: Brand ownership, July 2015
            • 64% of females claim they are the main drivers
              • Figure 4: Car driving status, by age and gender, July 2015
            • Fuel economy and in-car entertainment system generate the lowest user satisfaction
              • Figure 5: Car performance satisfaction, July 2015
            • Running errands for family and daily-commuting are the top two reasons for first car purchase
                • Figure 6: reasons for purchasing first car, July 2015
              • Safety upgrade is the top reason for replacing cars
                • Figure 7: Reasons for purchasing replacement cars, July 2015
              • People have high purchase intentions when it comes to new energy cars
                • Charging and power problems remain the main barriers to purchase
                  • Figure 8: Reasons for not purchasing new energy car, July 2015
                • What we think
                • Issues and Insights

                  • Brands could promote new energy cars as fulfilling consumers’ daily transport needs
                    • The facts
                      • The implications
                        • Encourage car owners’ second purchase through fulfilling their aspirations
                          • The facts
                            • The implications
                              • What else can brands do to enhance competitiveness?
                                • The facts
                                  • The implications
                                  • The Market – What you need to know

                                    • New passenger car sales only grew 4.8% in the first half of 2015
                                      • New energy car sales increased rapidly
                                        • People’ aspirations towards a better quality of life drive further growth
                                        • Market Size and Forecast

                                          • Strong growth in SUVs and MPVs
                                            • Figure 9: Total volume sales of new passenger cars, 2011-15 (till June)
                                          • Growth fails to offset the slowdown in total car market
                                              • Figure 10: Total volume sales of second-hand cars, 2009-14
                                            • New energy cars become a driver of future market growth
                                              • Slower growth forecasted over 2015-20
                                                • Figure 11: China total volume new passenger car sales forecast, 2010-20
                                            • Market Factors

                                              • Purchase intention from new drivers
                                                • Figure 12: The number of civil motor vehicles and car drivers, total China, 2012-15 (till June)
                                              • Car owners are active in replacing their cars
                                                • Demand from lower tier cities
                                                  • Figure 13: Private car ownership, tier one cities and total China, 2011-14
                                                • The relaxation of the One Child Policy may also encourage further growth
                                                  • Increasing cost of finding a parking space in major cities
                                                  • Key Players – What you need to know

                                                    • Car market in China becomes more competitive than before
                                                      • Brands are trying different methods to improve competitiveness
                                                        • Local tech giants are entering the automotive industry
                                                        • Market Share

                                                          • A good year for domestic brands
                                                            • Figure 14: Sales volume of new passenger cars, by country of the brand, 2012-15 (till June)
                                                            • Figure 15: Top ten SUV models, by sales volume, 2012-15 (till July)
                                                          • China car market is becoming more competitive
                                                            • Figure 16: Leading companies’ market shares in the China car market, by volume, 2012-15 (up to June)
                                                        • Competitive Strategies

                                                          • Working with car rental companies
                                                            • BMW Zinoro collaborates with eHi Car Services
                                                              • Shanghai Volkswagen works with China Auto Rental
                                                                • Dongfeng Nissan partners Baojia to enter car sharing business
                                                                  • Major brands are all investing to compete in the new energy car segment
                                                                    • Volkswagen
                                                                      • Toyota
                                                                        • Hyundai and Kia
                                                                          • Ford
                                                                            • BYD
                                                                              • Car brands are cutting their price to be more competitive
                                                                                • Figure 17: Price cutting tactics implemented by some brands, 2015
                                                                            • Who’s Innovating?

                                                                              • More flexible digital advertising
                                                                                • Local tech giants are moving into automotive industry
                                                                                • The Consumer – What you need to know

                                                                                  • German brands are facing challenges and losing appeal
                                                                                    • Increasing influence from women in car purchasing
                                                                                      • American and Japanese brands are scoring higher than German brands on multiple attributes
                                                                                        • German cars are very popular among those buying a car to get married
                                                                                          • Chinese consumers replace their cars for a better experience
                                                                                            • Chinese consumers have high purchase intention towards new energy cars
                                                                                            • Car Ownership

                                                                                              • German brands are facing challenges, but still dominate the China car market
                                                                                                • Figure 18: Brand ownership, July 2015
                                                                                                • Figure 19: Brand ownership ranking, August 2013 and July 2015
                                                                                              • Car owners are open to more brands as they become sophisticated
                                                                                                • Figure 20: Brand ownership, by car ownership status, Jul 2015
                                                                                                • Figure 21: Car purchase intention, August 2013 and July 2015
                                                                                              • Demographic differences
                                                                                                • German brands are losing appeal among 30-49-year-olds
                                                                                                  • Figure 22: Brand ownership, by age, August 2013 and July 2015
                                                                                                • High earners are more open-minded when selecting car brands
                                                                                                  • Figure 23: Brand ownership, by monthly personal income, August 2013 and July 2015
                                                                                              • Who Drives the Car

                                                                                                • 64% of females claim they are the main drivers
                                                                                                  • Figure 24: Car driving status, by age and gender, July 2015
                                                                                                  • Figure 25: Factors important to consumers in choosing which car to buy, by gender, June 2014
                                                                                              • Car Performance Satisfaction

                                                                                                • Fuel economy and in-car entertainment system generate the lowest satisfaction
                                                                                                  • Figure 26: Car performance satisfaction, July 2015
                                                                                                • American and Japanese brands are scoring high on multiple attributes
                                                                                                  • Figure 27: Car performance satisfaction – any satisfied*, by brand owners, July 2015
                                                                                              • Reasons for Purchasing the First Car

                                                                                                • Running errands for family and daily-commuting are the top two reasons
                                                                                                    • Figure 28: reasons for purchasing the first car, July 2015
                                                                                                  • German cars are preferred by those buying a car to get married
                                                                                                    • Figure 29: reasons for purchasing first car, by brand that people have bought last time, July 2015
                                                                                                  • Geographic differences also have an influence on consumers’ purchasing reasons
                                                                                                    • Figure 30: reasons for purchasing first car, by city, July 2015
                                                                                                • Reasons for Purchasing Replacement Cars

                                                                                                  • Safety is the top reason pushing consumers’ car replacement behaviour
                                                                                                    • Figure 31: Reasons for purchasing replacement cars, July 2015
                                                                                                  • Young and old consumers are triggered by different things
                                                                                                    • Figure 32: Reasons for purchasing replacement car, by age, July 2015
                                                                                                  • Diverse reasons from consumers with different household incomes
                                                                                                    • Figure 33: Reasons for purchasing replacement car, by monthly household income, July 2015
                                                                                                • Purchase Intention and Purchase Barriers of New Energy Cars

                                                                                                  • People have high purchase intention towards new energy cars
                                                                                                    • Figure 34: Purchase intention towards new energy cars, July 2015
                                                                                                  • Who is more likely to purchase new energy cars?
                                                                                                    • Figure 35: Purchase intention towards new energy car, by demographics, Jul 2015
                                                                                                  • Charging and power issues are still the top concerns
                                                                                                    • Figure 36: Reasons for not purchasing new energy car, July 2015
                                                                                                • Meet the Mintropolitans

                                                                                                  • Basic profile of MinT
                                                                                                    • Figure 37: Car ownership, by MinT and non-MinT, July 2015
                                                                                                    • Figure 38: Car performance satisfaction – any satisfied*, by MinT and non-MinT, July 2015
                                                                                                  • MinT are more likely to buy their first cars because of self-drive travelling
                                                                                                    • Figure 39: Reasons for purchasing first cars, by MinT and non-MinT, July 2015
                                                                                                  • MinT are more likely to replace their cars to upgrade their life
                                                                                                    • Figure 40: Reasons for purchasing replacement car, by MinT and non-MinT, Jul 2015
                                                                                                  • MinT are more likely to try new energy cars
                                                                                                    • Figure 41: Purchase intention towards new energy cars, by MinT and non-MinT, Jul 2015
                                                                                                • Appendix – Methodology and Abbreviations

                                                                                                  • Methodology
                                                                                                    • Fan chart forecast
                                                                                                      • Mintropolitans
                                                                                                        • Why Mintropolitans?
                                                                                                          • Who are they?
                                                                                                            • Figure 42: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
                                                                                                            • Figure 43: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
                                                                                                          • Abbreviations

                                                                                                          Companies Covered

                                                                                                          To learn more about the companies covered in this report please contact us.

                                                                                                          Car Purchasing Process - China - October 2015

                                                                                                          £3,170.69 (Excl.Tax)