China Car Purchasing Process Market Report 2022
£ 3,695 (Excl.Tax)
Report Summary
“After a temporary sluggishness in the second wave of the pandemic, China’s passenger car market has returned to steady growth, with NEV share growth being particularly notable. The car owners’ trading-up demand has not changed, and in addition to upgrading to better configurations, brands and models, there is also an increased demand for aftersales service upgrades. On the other hand, the trend towards smarter cars has raised car owners’ expectations of innovative technology. Brands need to continue to build on technological innovation and convey their technological advantages to potential users through marketing channels such as test drives, to establish a user base for conquering the smart car market.”
– Austin Yuan, Research analyst
Key issues covered in this Report:
- Energy type and branding trends.
- Purchasing budgets and upgrade awareness.
- Effective information channels.
- Factors that drive offline car viewing.
- Number of car brands test-driven in different channels.
- Current vs future car purchases considerations.
Table of Contents
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Overview
- What you need to know
- Key issues covered in this Report
- Report scope
- What you need to know
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Executive Summary
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- The market
- China’s passenger car retail volume nearly on par with last year and likely to approach 22.93 million units over the next five years
- Figure 1: Retail sales volume of passenger cars in China, 2017-22 (est)
- Figure 2: Wholesale sales volume of passenger cars in China, 2017-22 (est)
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- Figure 3: Retail sales volume and forecast of passenger cars in China, 2017-27
- Additional purchases and car replacements are the key engines of the automotive market
- Figure 4: Share of first, additional and replacement cars, 2016-21
- Trading-up behaviour continues to drive up car purchase prices
- Figure 5: Sales volume structure of the passenger car market, by price range, 2016-22
- Fast-growing NEV could achieve 20% volume share three years in advance
- Figure 6: Share of NEVs in China, by retail sales volume, 2018-22
- NEVs are credited with further expansion in the share of sales of domestic brands
- Figure 7: Share, by sales volume, by origin country, 2018-22
- Companies and brands
- New retail innovations continue to emerge
- Figure 8: Contracting the car deal in the metaverse, 2022
- Subscription service meets the need for flexible car use
- Figure 9: Zeekr Subscription, 2022
- Expanding in-car usage scenarios to bring additional value to users
- Figure 10: Zoom videoconferencing in Tesla
- Figure 11: Cutting-edge in-car entertainment platform for Audi vehicles
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- Figure 12: Inter-vehicle gaming solution
- The Consumer
- The share of NEVs increases rapidly
- Figure 13: Car energy type, by length of car ownership, car energy type and city tier, 2022
- 60% of car owners bought their cars over budget, with demand for configuration upgrades remaining
- Figure 14: Purchase budget and upgrade awareness, 2020 and 2022
- The effectiveness of short video platforms in promoting car viewing cannot be underestimated
- Figure 15: Effective information channel, 2022
- The attractiveness of innovative technologies has increased significantly
- Figure 16: Factors that drive offline car viewing, by length of car ownership, 2022
- The diversity of test drive channels brings more uncertainty to brand choice
- Figure 17: Number of car brands test-driven in different channels, 2022
- Growing awareness in terms of aftersales warranties and environmentally friendly
- Figure 18: Current vs future car purchase considerations, 2022
- What we think
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Issues and Insights
- Miniseries resonance with car buyers
- The facts
- The implications
- Figure 19: ‘ID. New Life of Hao Shi Couple’ (《皓史成双的ID.新生活》), the miniseries produced by SAIC Volkswagen, 2022
- Digital interactive innovation for the online car buying experience
- The facts
- The implications
- Figure 20: BMW Live Car Interactive Platform, 2020
- Trendy promotion scenarios including ‘convenience stores’ and science museums
- The facts
- The implications
- Figure 21: BMW Convenience Store, 2021
- Miniseries resonance with car buyers
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Market Size and Forecast
- China’s passenger car retail volume nearly on par with last year and likely to approach 22.93 million units over the next five years
- Figure 22: Retail sales volume of passenger cars in China, 2017-22 (est)
- Figure 23: Wholesale sales volume of passenger cars in China, 2017-22 (est)
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- Figure 24: Retail sales volume and forecast of passenger cars in China, 2017-27
- China’s passenger car retail volume nearly on par with last year and likely to approach 22.93 million units over the next five years
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Market Factors
- Additional purchases and car replacements are the key engines of the automotive market
- Figure 25: Share of first, additional and replacement cars, 2016-21
- Trading-up behaviour continues to drive up car purchase prices
- Figure 26: Sales volume structure of the passenger car market, by price range, 2016-22
- Fast-growing NEV could achieve 20% volume share three years in advance
- Figure 27: Share of NEVs in China, by retail sales volume, 2018-22
- Additional purchases and car replacements are the key engines of the automotive market
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Market Segmentation
- NEVs are credited with further expansion in the share of sales of domestic brands
- Figure 28: Share, by sales volume, by origin country, 2018-22
- SUV growth slows, but market potential remains amid electrification trend
- Figure 29: Share of different types of cars in China, by sales volume, 2018-22
- NEVs are credited with further expansion in the share of sales of domestic brands
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Marketing Campaigns
- New retail innovations continue to emerge
- Figure 30: Contracting the car deal in the metaverse, 2022
- Subscription service meets the need for flexible car use
- Figure 31: Zeekr Subscription, 2022
- New retail innovations continue to emerge
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New Product Trends
- Expanding in-car usage scenarios to bring additional value to users
- Figure 32: Zoom videoconferencing in Tesla
- Figure 33: Cutting-edge in-car entertainment platform for Audi vehicles
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- Figure 34: Inter-vehicle gaming solution
- Car peripherals to convey brand concepts and enhance user stickiness
- Figure 35: Nissan Office Chair, 2022
- Figure 36: Toyota Nap Seat
- Expanding in-car usage scenarios to bring additional value to users
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Energy Type and Branding Trends
- The share of NEVs increases rapidly
- Figure 37: Car energy type, by length of car ownership, car energy type and city tier, 2022
- Chinese brands overwhelmingly dominate the BEV market
- Figure 38: % of brands, by car energy type, 2022
- Remarkable premiumisation trend in NEV sector
- Figure 39: Car purchase price, by car energy type, 2022
- The share of NEVs increases rapidly
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Purchase Budget and Upgrade Awareness
- 60% of car owners bought their cars over budget, with demand for configuration upgrades remaining
- Figure 40: Purchase budget and upgrade awareness, 2020 and 2022
- More significant trading-up trend among younger car consumers
- Figure 41: Purchase budget and upgrade awareness, by age, 2022
- Increased proportion of those purchasing aftersales service or extended warranties
- Figure 42: Purchase budget and upgrade awareness, by car energy type, 2020 and 2022
- 60% of car owners bought their cars over budget, with demand for configuration upgrades remaining
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Effective Information Channels
- The effectiveness of short video platforms in promoting car viewing cannot be underestimated
- Figure 43: Effective information channel, 2022
- The halo of the professional and official platform is diminishing in terms of influence on young car consumers
- Figure 44: Effective information channel, by age, 2022
- Lower tier city car owners are less influenced by relatives and friends
- Figure 45: Effective information channels, by city tier and length of car ownership, 2022
- The effectiveness of short video platforms in promoting car viewing cannot be underestimated
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Factors that Drive Offline Car Viewing
- The attractiveness of innovative technologies has increased significantly
- Figure 46: Factors that drive offline car viewing, by length of car ownership, 2022
- New models are more likely to attract the attention of middle-aged car consumers
- Figure 47: Factors that drive offline car viewing, by age, 2022
- Innovative technology matters more to NEV consumers
- Figure 48: Factors that drive offline car viewing, by car energy type, 2022
- The attractiveness of innovative technologies has increased significantly
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Number of Car Brands Test-driven in Different Channels
- The diversity of test drive channels brings more uncertainty to brand choice
- Figure 49: Number of car brands test-driven in different channels, 2022
- Younger car owners test drive through various channels
- Figure 50: Test drive channels test-driven, by age, 2022
- Significant increase in the use of test drive channels other than 4S stores
- Figure 51: Test drive channels test-driven, by length of car ownership, 2022
- The diversity of test drive channels brings more uncertainty to brand choice
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Current vs Future Car Purchase Considerations
- Growing awareness in terms of aftersales warranties and environmentally friendly
- Figure 52: Current vs future car purchase considerations, 2022
- More than half of BEV owners consider buying extended warranties with their next car purchase
- Figure 53: Current vs future car purchase considerations, by car energy type, 2022
- Car owners in tier 1 cities place greater importance on software upgrade services
- Figure 54: Current vs future car purchase considerations, by city tier, 2022
- Growing awareness in terms of aftersales warranties and environmentally friendly
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Appendix
- Methodology
- Abbreviations
- Methodology
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