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Luxury Cars - China - June 2017

“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.”
– Aaron Guo, Senior Analyst, China

This Report answers the following key questions:

  • How are luxury cars defined in China?
  • How is Mercedes-Benz winning back the China market?
  • How to target young car buyers effectively?

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Table of contents

  1. 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

                                                                                          Companies Covered

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

                                                                                          Luxury Cars - China - June 2017

                                                                                          US $3,990.00 (Excl.Tax)