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 Retailing - China - March 2013

"The automotive industry is one of the pillar industries of the national economy, and plays a pivotal role in China's economic development. However, with the withdrawal of an auto consumption stimulus plan and slow growth in total car sales for two consecutive years, is the automobile market’s golden age of growth over?”

– Can Huang, Senior Research Analyst

Some questions answered in this report include:

  • How do government policy guidance and auto market policies affect the auto market and car retailing in China?
  • How have the changes in car retailing that occurred in 2012 impacted car retailing in China, and in particular dealers?
  • What does the road ahead look like for the car retailing model in China? As the 4S dealership model evolves, will after-sales service become part of the model?


Report Introduction:

Mintel predicts that car sales in China will maintain stable growth over the next five years. The annual growth rates of 20-30% of the previous few years will likely not be seen again.

The authorised brand dealership model forms the core framework of car retailing in China, which has enabled manufacturers to dominate and further strengthened the control and dominance of foreign capital in the automotive industry and retail market. The emergence of powerful car dealer groups will challenge the dominance of the manufacturers in the automotive retail market and will in the long term change the structure of the automotive retail industry.

The automotive retail industry will develop from the single 4S dealership model to a more diverse range of models. Reform of the 4S dealership model is imperative, and after-sales services still have much room for improvement. New models of dealers will offer not only traditional repair and maintenance, but also modern, higher value-added services such as auto finance and car tuning.”

 

Liqueurs - UK - January 2012

Take a look inside a sample report

Mintel’s consumer reports deliver insight and expert analysis into key consumer trends and behaviour in your marketplace, in addition to an overview of the market data and key brands. Mintel’s consumer reports provide you with easily digestible information to guide your future innovation and move your business forward.

Download now

 

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. Introduction

      • Definition
        • Report structure
          • Methodology
            • Abbreviations
            • Executive Summary

                • Car retailing market
                  • Following a period of rapid growth, the passenger car market will see steady growth
                    • Figure 1: Car sales in China ('000 vehicles), 2007-12
                  • Automakers’ market share
                    • Drivers and barriers to growth in the passenger car market
                      • The forecast
                        • New car market
                          • Figure 2: Forecast – volume sales of new cars in China ('000 vehicles), 2007-17
                        • Used car market
                          • Figure 3: Forecast – volume sales of used cars in China ('000 vehicles), 2007-17
                        • Car retail channels
                          • The consumer
                            • Car parc continues to grow
                              • Brand and model of main car
                                • Plans to buy a car in the next year
                                  • Resources used when buying a car
                                    • Choice of channel when buying a car
                                      • Important factors when buying a car
                                        • Attitudes towards after-sales service and car finance
                                          • Significant impact of policy on car retailing
                                            • Changes in car retail models and new business development
                                              • Room for improvement in after-sales services
                                              • Car Retailing Market

                                                • Key points
                                                  • Car retailing market in China moves from rapid growth to steady growth
                                                    • Figure 4: Car sales in China ('000 vehicles), 2007-12
                                                  • Vehicle types
                                                    • Figure 5: Car sales in China, by vehicle category ('000 vehicles), 2007-12
                                                  • Automakers’ market share
                                                    • Shanghai GM leads the passenger car market
                                                      • Figure 6: Market share of top ten passenger car manufacturers, by passenger car sales, 2010-12
                                                    • German brands are strong, Japanese brands decline and Chinese self-owned brands experience slow growth
                                                        • Figure 7: Market share of passenger car market in China, by car making nation, 2010-12
                                                      • Drivers of growth in the passenger car market
                                                        • Sustained economic growth in China
                                                          • The automotive industry is a pillar of the national economy
                                                            • Income levels of urban and rural residents continue to rise
                                                              • Figure 8: Per capita net income and actual growth rate of urban and rural residents in China, 2008-12
                                                            • Urbanisation is an opportunity for auto industry growth
                                                              • Figure 9: Urban/rural population split, 2008-12
                                                            • Rapid spread of motorway network and rise of road trips
                                                              • Large room for growth in car parc in China
                                                                • More choices for consumers
                                                                  • Car owners are trading up, and consumers without cars are eager to jump on the bandwagon
                                                                    • Barriers to growth in the auto market
                                                                      • Potential for excess production capacity
                                                                        • Rising petrol prices and sharp increase in the cost of keeping a car
                                                                          • Urban construction is slowing, and congestion and lack of parking in the city are becoming the norm
                                                                            • Car exhaust emissions
                                                                              • The forecast
                                                                                • New car market
                                                                                  • Figure 10: Forecast – volume sales of new cars in China ('000 vehicles), 2007-17
                                                                                • Used car market
                                                                                  • Figure 11: Forecast – volume sales of used cars in China ('000 vehicles), 2007-17
                                                                              • Car Retail Channels

                                                                                • Key points
                                                                                  • Car retail channels overview
                                                                                    • The 4S dealership model
                                                                                      • Other retail formats
                                                                                        • Market trends
                                                                                          • Retail channels are moving into lower tier markets and further West in China
                                                                                            • Two opposite directions in which the 4S dealership model may develop
                                                                                              • Government regulation of car retailing
                                                                                                • Retail channels of major car manufacturers
                                                                                                  • Dealership groups
                                                                                                    • Top ten dealership groups
                                                                                                      • Figure 12: Top ten China auto dealers, 2011
                                                                                                    • Car dealership groups stock listings
                                                                                                      • Figure 13: Overview of car dealership group stock listings
                                                                                                    • Main dealership groups
                                                                                                      • China Grand Automotive Service Co., Ltd.
                                                                                                        • Pang Da Automobile Trade Co., Ltd.
                                                                                                          • Lei Shing Hong
                                                                                                            • Zhongsheng Group Holdings Limited
                                                                                                              • China Yongda Automobiles Services Holdings Limited
                                                                                                              • The Consumer

                                                                                                                • Key points
                                                                                                                  • Car parc continues to grow
                                                                                                                      • Figure 14: Individual car ownership status, January 2013
                                                                                                                    • Brand and model of main car
                                                                                                                      • Japanese and German cars are the most popular amongst consumers, whilst Volkswagen is the top brand
                                                                                                                          • Figure 15: Brand of the main car, January 2013
                                                                                                                          • Figure 16: Characteristics of car buyers of different brands of main car, by car brand, January 2013
                                                                                                                          • Figure 17: Model of the main car, January 2013
                                                                                                                        • Plans to buy a car in the next year
                                                                                                                            • Figure 18: Car ownership of the family and car purchase plan, January 2013
                                                                                                                          • Resources used when buying a car
                                                                                                                            • Growing role of online information
                                                                                                                              • Emergence of social media
                                                                                                                                  • Figure 19: Resources used for last car bought, January 2013
                                                                                                                                • Choice of channel when buying a car
                                                                                                                                  • 4S dealers are the main channel for car retail in China
                                                                                                                                    • Figure 20: Channel of last car bought, January 2013
                                                                                                                                  • Primary considerations in choosing a car dealer
                                                                                                                                      • Figure 21: Important factors in choosing a car dealer, January 2013
                                                                                                                                    • Attitudes towards after-sales service and car finance
                                                                                                                                        • Figure 22: Attitudes towards buying a car and services, January 2013
                                                                                                                                    • The Impact Of Policy On Car Retailing

                                                                                                                                      • Key points
                                                                                                                                        • The major policies affecting the auto industry
                                                                                                                                          • Automotive Industry Development Policy
                                                                                                                                            • Automobile industry restructuring and revitalisation plan
                                                                                                                                              • Main policies affecting car retailing
                                                                                                                                                • Administration of Automobile Brand Sales Implementing Procedures
                                                                                                                                                  • What this means
                                                                                                                                                  • Changes In Car Retail Models And New Business Development

                                                                                                                                                    • Key points
                                                                                                                                                      • Overstocked inventories and dealers exiting distribution networks in 2012
                                                                                                                                                        • Figure 23: Auto dealer inventory survey findings, inventory coefficient, by month, 2012
                                                                                                                                                      • Source of major issues in the car retail market
                                                                                                                                                        • Rapid imbalances in market supply and demand
                                                                                                                                                          • Over-concentrated distribution of dealers nationally
                                                                                                                                                            • Manufacturers’ and distributors' unequal relationship, passing on of risk
                                                                                                                                                              • The 4S dealership model is being challenged
                                                                                                                                                                • Figure 24: China's top 100 car dealers’ income structure, 2009-11
                                                                                                                                                              • Trends in car retailing models
                                                                                                                                                                • Figure 25: Channel of last car bought, January 2013
                                                                                                                                                                • Figure 26: Resources used for last car bought, January 2013
                                                                                                                                                                • Figure 27: Attitudes towards buying a car and services, January 2013
                                                                                                                                                              • New business development
                                                                                                                                                                  • Figure 28: Attitudes towards buying a car and services, January 2013
                                                                                                                                                                • What this means
                                                                                                                                                                • Room For Improvement In After-Sales Services

                                                                                                                                                                  • Key points
                                                                                                                                                                    • Impact and potential of after-sales services
                                                                                                                                                                      • Figure 29: Important factors in choosing a car dealer, January 2013
                                                                                                                                                                      • Figure 30: Sample survey of 4S dealership after-sales services, March 2013
                                                                                                                                                                    • Price is a barrier to expanding share of after-sales services
                                                                                                                                                                        • Figure 31: Attitudes towards buying a car and services, January 2013
                                                                                                                                                                      • Possible divergence in the 4S dealership after-sales service model
                                                                                                                                                                        • Figure 32: Attitudes towards buying a car and services, January 2013
                                                                                                                                                                        • Figure 33: Attitudes towards buying a car and services, January 2013
                                                                                                                                                                      • Other after-sales service models
                                                                                                                                                                        • Auto finance
                                                                                                                                                                            • Figure 34: Attitudes towards buying a car and services, January 2013
                                                                                                                                                                          • What this means
                                                                                                                                                                          • Appendix – Car Ownership of the Family and Car Purchase Plan

                                                                                                                                                                              • Figure 35: Car ownership of the family and car purchase plan, January 2013
                                                                                                                                                                              • Figure 36: Car ownership of the family and car purchase plan, by demographics, January 2013
                                                                                                                                                                          • Appendix – Individual car Ownership Status

                                                                                                                                                                              • Figure 37: Individual car ownership status, January 2013
                                                                                                                                                                              • Figure 38: Individual car ownership status, by demographics, January 2013
                                                                                                                                                                          • Appendix – Brand and Model of the Main Car

                                                                                                                                                                              • Figure 39: Brand and model of the main car, January 2013
                                                                                                                                                                              • Figure 40: Brand and model of the main car, by individual car ownership status, January 2013
                                                                                                                                                                          • Appendix – Resources Used for Last Car Bought

                                                                                                                                                                              • Figure 41: Resources used for last car bought, January 2013
                                                                                                                                                                              • Figure 42: Resources used for last car bought, by individual car ownership status, January 2013
                                                                                                                                                                              • Figure 43: Resources used for last car bought, by demographics, January 2013
                                                                                                                                                                          • Appendix – Channel of Last Car Bought

                                                                                                                                                                              • Figure 44: Channel of last car bought, January 2013
                                                                                                                                                                              • Figure 45: Channel of last car bought, by individual car ownership status, January 2013
                                                                                                                                                                          • Appendix – Important Factors in Choosing a Car Dealer

                                                                                                                                                                              • Figure 46: Important factors in choosing a car dealer, January 2013
                                                                                                                                                                              • Figure 47: Important factors in choosing a car dealer, by individual car ownership status, January 2013
                                                                                                                                                                          • Appendix – Attitudes towards Buying a Car and Services

                                                                                                                                                                              • Figure 48: Attitudes towards buying a car and services, January 2013
                                                                                                                                                                              • Figure 49: Attitudes towards purchasing/dealership, by demographics, January 2013
                                                                                                                                                                              • Figure 50: Attitudes towards aftersales, by demographics, January 2013
                                                                                                                                                                              • Figure 51: Attitudes towards car finance services, by demographics, January 2013

                                                                                                                                                                          Companies Covered

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

                                                                                                                                                                          Car Retailing - China - March 2013

                                                                                                                                                                          £3,195.84 (Excl.Tax)