Industry Analysis & Industry Trends
Demand for passenger cars in China has increased substantially in the past decade. Initially, demand increased in China's major cities, such as Beijing and Shanghai. Demand in China's second-tier and third-tier cities has also increased at a rapid rate in recent years.
Major demand drivers have been increased household income levels, increased domestic production of automobiles, and lower pricing levels of cars by manufacturers and retailers. Intensified competition among vehicle dealers has resulted in price wars, which has also reduced industry profitability in recent years.
The most common types of vehicle retail and service dealers in China are 4S stores (sales, spare parts, service and survey).... purchase to read more
Industry Report - Industry Locations Chapter
Passenger cars can be divided into four markets, each consisting of different provinces or directly governed cities.
First-tier markets refer to directly governed cites such as Beijing, Shanghai and Tianjin, with a total population of 43.6 million and a car population per thousand people of greater than 20 units.
Second-tier markets refer to provinces such as Jiangsu, Zhejiang, Liaoning and Guangdong, with a total population of 257.9 million and a car population per thousand people of between 10 and 20 units.
Third-tier markets refer to provinces such as Jilin, Shanxi and Shandong, with a population of 616.5 million and a car population per thousand people of between five and 10 units... purchase to read more