Medium Cars - China

China

Revenue in the Medium Cars market is projected to reach €82,830m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.96%, resulting in a projected market volume of €86,890m by 2029.
Medium Cars market unit sales are expected to reach 5,103.0k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to €17k.
From an international perspective it is shown that the most revenue will be generated in China (€82,830m in 2024).

Key regions: India, United States, Germany, China, Europe

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Analyst Opinion

The Medium Cars market in China has been experiencing significant growth in recent years. Customer preferences have shifted towards medium-sized cars due to their practicality and affordability. In addition, there are several trends in the market that have contributed to its development.

Customer preferences: Chinese customers have shown a preference for medium-sized cars due to their versatility and functionality. These cars offer a good balance between fuel efficiency and interior space, making them suitable for both urban and long-distance driving. Additionally, medium-sized cars are often more affordable compared to larger luxury vehicles, making them an attractive option for the middle-class population in China.

Trends in the market: One of the key trends in the Medium Cars market in China is the increasing demand for electric and hybrid vehicles. With the government's push towards reducing carbon emissions and promoting sustainable transportation, many automakers have introduced electric and hybrid models in the medium-sized car segment. This trend is expected to continue as more Chinese consumers become environmentally conscious and seek greener transportation options. Another trend in the market is the integration of advanced technology and connectivity features in medium-sized cars. Chinese consumers are increasingly looking for vehicles that offer the latest in-car entertainment systems, navigation features, and smartphone integration. Automakers are responding to this demand by equipping their medium-sized cars with innovative technology, enhancing the overall driving experience for customers.

Local special circumstances: China's rapidly expanding middle class and urbanization have played a significant role in the growth of the Medium Cars market. As more people move to cities and experience higher income levels, the demand for personal vehicles has increased. Medium-sized cars offer a practical and affordable transportation solution for these urban dwellers, allowing them to navigate congested city streets and travel comfortably with their families.

Underlying macroeconomic factors: China's strong economic growth and rising disposable incomes have contributed to the development of the Medium Cars market. As consumers have more purchasing power, they are able to afford larger and more expensive vehicles. Additionally, favorable government policies, such as tax incentives for purchasing energy-efficient vehicles, have also stimulated the market. In conclusion, the Medium Cars market in China is experiencing growth due to customer preferences for practical and affordable vehicles, as well as the introduction of electric and hybrid models and advanced technology features. The expanding middle class and urbanization in China, coupled with favorable macroeconomic factors, have further fueled the market's development.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).