The return of A-segment cars in China
- Segment A cars (i.e. the cheapest on the market) nearly disappeared from the Chinese market in 2015-2016, after a peak in sales in 2010 (650,000 units) and then a steady decline from 2010 to 2016 (200,000 units). The development of A-segment car sales in China in the early 2000s was boosted by the rise of the Suzuki Alto and the Chery QQ, which were their first car purchase for many less fortunate Chinese. The development of LSEVs (Low Speed Electric Vehicles) was also relatively important in rural areas.
- From 2017, Chinese A-segment cars are gradually converting to electric engines and these cars then become a second car in wealthy families. With the increase in purchasing power in China, A-segment customers often move directly to B-segment and even C-segment. Less fortunate customers then turn to second-hand. After a drop in sales of A-segment electric cars in 2019, following the reduction of government aid, the A-segment market is picking up vigorously in 2020 and especially 2021 with the appearance of the Wuling Hongguang Mini EV which is creating a new market that tends to replace the old LSEV market.
- In 2021, the Wuling Mini EV sold nearly 430,000 units in China, becoming the best-selling model in this market and reinvigorating the A segment which, thanks to the launch of competing models, reached a new sales peak of 865,000 units last year. However, the A segment remains very weak in China with a market share of 4% in 2021 (8% in Europe).
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