Passenger Vehicle Market in China 2016-2020

  • Published: May 2016
  • Pages: 80
  • SKU: IRTNTR9430

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This market research report presents a detailed segmentation of the passenger vehicle market in China by propulsion type (ICE and electric and hybrid) and by vehicle type (sedan and small cars, SUV and crossover, MPV, and luxury cars). The leading vendors in this market include BAIC, Dongfeng Motor, FAW, Geely, and SAIC.

Overview of the passenger vehicle market in China

Technavio’s market research analyst predicts the passenger vehicle market in China to grow at a CAGR of more than 5% by 2020. China is one of the fastest-growing auto industries and accounts for a major presence of original equipment manufacturers (OEMs) across the globe. Passenger cars are a key segment of the Chinese automotive industry, constituting more than 80% of the total automotive industry. Factors such as increasing disposable income, rapid urbanization, demand for new cars from lower tier cities, and low vehicle costs are driving the growth of passenger vehicles in China. The market is also expected to witness rapid sales of electric and hybrid cars during the forecast period due to the reduced cost of batteries used in these vehicles.

Owing to the presence of a well-established e-commerce chain and the growing preference for buying merchandise through online platforms, several automotive manufacturers are making their products available online. With more people willing to buy cars online, the OEMs and dealers are selling new cars online through various e-business platforms such as Alibaba, Autobytel, and AutoNation. Automotive OEMs in China are expected to focus on the online retail channels in the coming years as these channels will help the OEMs to maintain a direct relationship with buyers.

Segmentation by propulsion type and analysis of the passenger vehicle market in China

  • Internal combustion engine (ICE)
  • Electric and hybrid

By 2020, the electric and hybrid vehicle segment will be the fastest growing segment of the market and is expected to grow at a CAGR of more than 23%. The sales of electric and hybrid vehicles will increase significantly owing to government-sponsored cash subsidies, the expansion of EV infrastructure development, and declining prices of vehicle batteries. Factors such as stringent emission norms, fluctuating fuel prices, and the growing demand from customers for eco-friendly transportation are expected to drive the growth of this segment during the forecast period.

Segmentation by vehicle type and analysis of the passenger vehicle market in China

  • Sedan and small cars
  • SUV and crossover
  • MPV
  • Luxury Cars

The sedans and small cars segment dominated the passenger vehicle market in China in 2015 and occupied around 52% of the overall market share. Much of this segment’s growth can be attributed to economic slowdown ad government-sponsored subsidies for these vehicles. Rising demand for sedans in Tier three, four, and five cities and the introduction of small cars at low prices will contribute to the growth of this segment in the coming years.

Competitive landscape and key vendors

This market is extremely fragmented with the presence of many foreign and domestic players. It is primarily dominated by key players who collectively account for more than 62% of the total market share. Being the biggest market for passenger cars, several global OEMs are entering the Chinese market owing to the high market demand. Moreover, the regional players are offering products at low prices to acquire more market shares and to increase their profit margins.

The leading vendors in the market are -

  • BAIC
  • Dongfeng Motor
  • FAW
  • Geely
  • SAIC

Other prominent vendors in the passenger vehicle market in China are Brilliance Auto, BYD Auto, Chery, GAC (Guangzhou Automobile Corp.), GM China, Great Wall, and Volkswagen China.

Key questions answered in the report include

  • What will the market size and the growth rate be in 2020?
  • What are the key factors driving the passenger vehicle market in China?
  • What are the key market trends impacting the growth of the passenger vehicle market in China?
  • What are the challenges to market growth?
  • Who are the key vendors in the passenger vehicle market in China?
  • What are the market opportunities and threats faced by the vendors in the passenger vehicle market in China?
  • Trending factors influencing the market shares of China.
  • What are the key outcomes of the five forces analysis of the passenger vehicle market in China?

Technavio also offers customization on reports based on specific client requirement.

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Table of Contents

PART 01: Executive summary

  • Highlights

PART 02: Scope of the report

  • Report coverage
  • Definitions of products and market

PART 03: Market research methodology

  • Research methodology
  • Economic indicators

PART 04: Introduction

  • Key market highlights

PART 05: Value chain

PART 06: Market landscape

  • Overview
  • Five forces analysis

PART 07: Market segmentation by propulsion type

  • Passenger vehicle market in China market segmentation by propulsion type
  • ICE passenger vehicle market in China
  • Electric and hybrid passenger vehicle market in China

PART 08: Market segmentation by vehicle type

  • Passenger vehicle market in China by vehicle type
  • Sedan and small car market in China
  • SUV/crossover market in China
  • MPV market in China
  • Luxury car market in China

PART 09: Market drivers

  • Low vehicle per capita and high rural to urban migration to offer an attractive passenger vehicle market
  • High adoption of electric vehicles to provide new business opportunities
  • Strong profit margins to attract higher investments by domestic and international OEMs
  • Rapid growth expected from Tier 3, 4, and 5 cities

PART 10: Impact of drivers

PART 11: Market challenges

  • Increasing cost pressure on OEMs from demand side
  • Economic slowdown in China

PART 12: Impact of drivers and challenges

PART 13: Market trends

  • OEMs to focus on new product development and strong product portfolio to secure market share
  • Digitalization of China’s automotive industry
  • Domestic OEMs to capture higher market share than international OEMs
  • China to become testing ground for autonomous vehicles
  • OEMs to adopt localization to push luxury vehicles by reducing the cost

PART 14: Vendor landscape

  • Competitive benchmarking
  • Other prominent vendors

PART 15: Key vendor analysis

  • BAIC Group
  • Changan Automotive
  • Dongfeng Motor
  • FAW
  • Geely
  • SAIC Motor

PART 16: Appendix

  • List of abbreviations

PART 17: Explore Technavio

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.


Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases


Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts



  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis


  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape
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