100% Chinese brands see their market share increase in China
- In the Chinese passenger car market, foreign carmakers who manufacture in China as part of joint ventures (JV) with local manufacturers/assemblers still account for two thirds of total registrations, as was the case a decade ago.
- It should, however, be noted that these foreign manufacturers had already reached as much as 72% of the market for passenger vehicles in 2014, thanks to their sedans, but also to some extent their SUVs. In the same year, the share of 100% Chinese manufacturers in the passenger vehicle market fell to 28%, even though the Chinese government had set them a target to gain a 40% share of the market.
- It was the strong growth in sales of SUVs offered by Chinese 100% manufacturers which allowed these manufacturers to increase their market share substantially in 2015 and 2016 (1st quarter). Sales of electric cars also contributed modestly to this growth. From 28% in 2014, the market share of 100% Chinese manufacturers grew to 32% in 2015, and to 36% in the first quarter of 2016, returning to 2006-2007 levels.
- This trend shows no signs of decelerating over the course of the next few months, as around twenty new SUVs were unveiled at the Beijing Motor Show by 100% Chinese manufacturers.
- Inovev believes that the latter could indeed reach the goal of a 40% share of the market from 2017.
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