China Auto Marketing and Retailing Market Report 2024
China's automotive industry is entering a golden age of free competition. Competition among brands is no longer solely determined by product strength.
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Executive summary
- Key issues covered in this Report
- Definition
- Overview
- Executive summary
- The market
- Market factors
- Marketing activities
- New product trends
- The consumer
- The demand for replacement/additional purchases in lower tier cities is booming
- Graph 1: Car purchase condition, by city tier, 2023
- Intelligent and health-related elements are the most engaging content for car owners
- The usage frequency of short video platforms is on the rise, while the usage of search engines is declining
- Graph 2: Changes in information channels, 2022 vs 2023
- Digital and outdoor peripheral products are more effective in helping car brands build brand associations
- Brand activities that embody the value of cars, environmental friendliness and culture are likely to receive greater support from car owners
- Joint venture brands are widely recognised for their technological advantages, BYD demonstrating the most significant improvement across all brand images
- Graph 3: Brand image, 2023
- The authenticity of sharing face-to-face with family and friends is highly valued
- Issues and insights
- What we think
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The market
- Market factors
- China's car market continues to rebound, with intensified competition marking the year 2024
- Graph 4: Retail sales volume of passenger cars in China, 2016-2023
- Beyond price wars: the value perceived through the lens of intelligence is leading the transformation of the Chinese car market
- Explore opportunities on lifestyle platforms and proactively cultivate diversified aesthetics
- The reference information for car purchases has extended to include overseas reputation, with its objectivity and impartiality attracting attention
- Automotive metaverse marketing enhances car owners' digital experience from offline to online
- Marketing activities
- Collaborate with content platforms and leverage the documentary format to create deep resonance with consumers
- Leverage live shows and interactive topics to infuse youthful elements
- Embracing hands-on validation: young tech influencer engages in a conversation with a car company leader
- New product trends
- AR technology transforms the immersive driving experience
- Emerging light field screen technology is shaping the future of the video-watching experience in advanced car entertainment
- Exit warning system: reducing danger when getting out of the car
- Improved accessibility: car equipped with powered lifting seat
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The consumer
- The difference between current car owners and potential car owners
- The demand for additional and replacement purchases is surging in lower tier cities
- Graph 5: Car purchase condition, by city tier, 2023
- The proportion of existing replacement/additional vehicle buyers choosing NEVs is significantly higher than that of first-time buyers
- Graph 6: Car purchase condition, by energy type, 2023
- Domestic brands are favoured by potential NEV owners
- Graph 7: Preferred energy type for potential car owners, by car brands region, 2023
- Changes in interest in car-related content
- Intelligent and health-related elements are the most engaging content for car owners
- Graph 8: Changes in interest in car-related content, 2023
- BEV owners are particularly interested in intelligent health features
- Graph 9: Changes in interest in car-related content, by energy type, 2023
- Female car owners show a greater interest in multi-functional scene configurations compared to male car owners
- Graph 10: Changes in interest in car-related content, by gender, 2023
- Owners of high-priced cars are particularly interested in exterior modifications
- Graph 11: Changes in interest in car-related content, by car purchase price, 2023
- Changes in information channels
- The usage frequency of short video platforms is on the rise, while the usage of search engines is declining rapidly
- Graph 12: Changes in information channels, 2022 vs 2023
- Short videos reach more car owners in tier 1 cities than in lower tier cities
- Graph 13: Changes in information channels, by city tier, 2022 vs 2023
- Owners of low-priced cars have significantly increased their use of automotive specialised platforms
- Graph 14: Changes in information channels, by car purchase price, 2022 vs 2023
- Interest in peripheral products
- Digital and outdoor peripheral products are in demand
- Graph 15: Interest in peripheral products, 2023
- Fuel car owners demonstrate a greater interest in outdoor products launched by their car brands compared to NEV owners
- Graph 16: Interest in peripheral products – brand of your most frequently driven car, by energy type, 2023
- BEV owners in lower tier cities exhibit a stronger interest in clothing accessories launched by their car brands compared to those in higher tier cities
- Graph 17: Interest in peripheral products – brand of your most frequently driven car, by city tier, 2023
- Besides digital products, newcomer brands have the potential to expand into lifestyle categories such as outdoor products
- Graph 18: Interest in peripheral products – foreign newcomers brands, by gender, 2023
- Graph 19: Interest in peripheral products – domestic newcomers brands, by gender, 2023
- Activities to enhance brand affinity
- Brand activities that embody the value of cars, environmental friendliness and culture are likely to receive greater support from car owners
- Graph 20: Activities to enhance brand affinity, 2023
- Promoting car brand concepts and enhancing on-site experiences are more effective when targeting potential NEV owners
- Graph 21: Activities to enhance brand affinity, by energy type, 2023
- Potential first-time BEV buyers show a greater interest in music festivals and sports events
- Graph 22: Activities to enhance brand affinity, by potential BEV buyers' car purchase conditions, 2023
- Brand image tracking
- Joint venture brands are widely recognised for their technological advantages, BYD demonstrating the most significant improvement across all brand images
- Graph 23: 2023 minus 2021
- Graph 24: Brand image, 2023
- BYD's youthful image is deeply entrenched in tier 1 cities
- Graph 25: Brand image – youthful, by city tier, 2021 vs 2023
- Graph 26: Brand image – up-to-date/trendy, by city tier, 2021 vs 2023
- Interest in Tesla among non-BEV owners has declined significantly
- Graph 27: Brand image – Tesla – strong technical capability, by energy type, 2021 vs 2023
- Experiences sharing on different platforms
- The authenticity of sharing face-to-face with family and friends is highly valued
- Graph 28: Positive vs negative experiences sharing on different platforms (rebased on respondents who have shared previously), 2023
- Graph 29: Experiences sharing on different platforms – shared before vs never shared before, 2023
- The proportion of female car owners who share their car usage experiences on Xiaohongshu has reached 30%
- Graph 30: Experiences sharing on different platforms – WeChat, by gender, 2023
- Graph 31: Experiences sharing on different platforms – lifestyle sharing platforms, by gender, 2023
- Fuel car owners have a stronger desire to share their experiences on traditional channels
- Graph 32: Experiences sharing on different platforms – shared before, by energy type, 2023
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Issues and insights
- Car companies are establishing official presences on lifestyle platforms and utilising various approaches to showcase both the appearance and capabilities of their cars
- In the era of AI, brands are introducing intelligent health cockpits that deeply understand their users, thus venturing into the realm of wellbeing
- Utilising the community aspect of interest-based marketing to establish an emotional bond between consumers and brand culture
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Appendix – methodology and abbreviations
- Methodology
China's automotive industry is entering a golden age of free competition. Competition among brands is no longer solely determined by product strength. Marketing content and formats have emerged as key factors directly influencing brand image and the trust established with car owners.
Austin Yuan, Senior Analyst, China Insights
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