China’s vehicle demand is shifting from the East towards the West

China’s PC market, which is divided into 4 regions namely East, Central, Northeast and West, has been led up until now by East provinces. In this region, PC sales rose from 2.94 million units in 2008 to 7.68 million units in 2013. In Central and West China, where personal income has been on the rise thanks to economic growth, PC sales reached 6.25 million units in these two regions.


Whereas the strong growth of 49% in 2009 experienced in the East went down to 13.4% by 2013, which indicates a shift in market demand from East China to West China (20% growth in 2013). This phenomena was boosted by the vehicle purchase regulations established by Eastern Chinese cities such as Beijing, Shanghai, Guangzhou, Tianjin in response to worsening air pollution.


In West China, SUVs reached a high with 29.7% market share in the first quarter of 2014. A market share way higher than in other regions due to its landscape which is very well suited to SUVs.


More an more manufactures are establishing their plants in Central and West China, such as VW, Hyundai and PSA alongside increasing sales network in this region.

 

14-21-11  


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