China's Passenger Car Market Trends Upgrading and International Expansion

TapTechNews August 14th news, yesterday (August 13th), Cui Dongshu, the secretary-general of the China Passenger Car Association, posted a blog. According to the data of the association, driven by consumption upgrading, the price segment sales structure trend of the national passenger car market continues to rise.

Strengthening the characteristics of high-end

Under the promotion of consumption upgrading, the price segment sales structure trend of the national passenger car market continues to rise, and the sales proportion of high-end models increases significantly, while the sales proportion of medium and low-priced models decreases.

In recent years, the price of the auto market has shown a continuous upward trend. It was 142,000 yuan in 2019 and 153,000 yuan in 2020. The cumulative average this year is 179,000 yuan, and it is 182,000 yuan in July. TapTechNews attaches the relevant chart content as follows:

The main reasons are as follows:

The price of hybrids and extended-range models is relatively high, forming a structural pull.

The original fuel vehicles also show an increase in the average sales price.

The high-end of fuel vehicles drives a relatively large price increase.

Structure

From the structural analysis, the entry-level shrinks, and the problem of the weak consumption base is relatively large. The purchasing power at the medium and low ends is insufficient, and the price war has also broken out significantly.

The price segment structure trend of the national urban market continues to rise, and the sales of high-end new energy models increase significantly, while the sales of medium and low-priced models decrease.

In recent years, the proportion of various segments of models above 300,000 yuan has continued to rise. The retail proportion of 300,000-400,000 yuan models in 2023 is 10.6%, and in July it is 10.4%. The domestic retail proportion of models above 400,000 yuan in 2023 is 3.2%, and in July this year it is 4.0%. The breakthrough of independent brands' high-end reflects the obvious trend of high-end development brought by the growth of passenger car new energy.

Independent brands going global

From the monitoring of the retail data of independent brands exported to overseas markets, the proportion of A0-class electric vehicles once reached nearly 50%, which is the absolute main force of independent exports. Small electric vehicles of independent brands such as SAIC performed relatively strongly in Europe in the early stage, so they were subject to relatively targeted tax increase measures. This also reflects that small and mini electric vehicles are the core of competition in the world electric vehicle market. We urgently need to guide the fiscal and tax policies for the miniaturization of electric vehicles and encourage the development of small and mini electric vehicles, so that Chinese electric vehicles can continue to go global.