Passenger Car Manufacturing in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
3721aRevenue
$640.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
1m
Businesses
128
Wages
$XX.Xbn
Passenger Car Manufacturing in China industry analysis
Revenue for the Passenger Car Manufacturing in China is expected to fall at an annualized 1.4% to $640.9 billion over the past five years, including a 3.9% rise in 2024 alone, when profit is anticipated to stay relatively steady at 8.2%.<br />As income levels in China have risen, road conditions have improved, and prices have become more competitive, passenger cars have become more affordable for Chinese residents. To meet the needs of consumers, automobile enterprises have been launching many new models to attract consumers. A series of favorable government policies have also stimulated new energy passenger vehicle purchases in rural and urban China. The total terminal sales volume of alternative-fuel passenger cars in China increased to 7.7 million units in 2023, up 36.2% from 2022.<br />Domestic passenger car manufacturers have been promoting the electric and intelligent development of passenger cars and improving product structure. In addition, Increasing numbers of domestic passenger car manufacturers have also been expanding into foreign markets, driving demand for industry exports. The industry exports have increased at an annualized 60.0% over the past five years, with exports' share of total industry revenue growing from 1.3% in 2019 to an estimated of 13.2% in 2024.<br />ACMR-IBISWorld forecasts that the industry will increase steadily over the next five years, with revenue increasing at an annualized 3.2% over the five years through 2029, to total $750.2 billion. Domestic passenger car manufacturers are improving product quality and low pricing has led to strong acceptance in emerging countries.
Trends and Insights
- A shortage of upstream supply has caused particular negative effects on industry development. However, with measures having been taken to help solve the issue, the chip shortage of automobiles will gradually be alleviated in the future.
- Sport utility vehicles are the largest segment, accounting for 50.7% of total sales volume of the industry in 2024. Mini buses have the smallest market share, accounting for 1.0% of total sales volume in 2023.
- Historically being a major car manufacturing center, Jilin is the largest passenger car manufacturing province. Being the second-largest passenger car manufacturing province, Shanghai is building an automobile industry cluster.
- Market competition is becoming increasingly fierce. Passenger car manufacturers typically expand their market share through improving brand awareness and launching new products.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.4 % over the past five years, to reach an estimated $640.9bn in 2024.
Trends and Insights
The COVID-19 outbreak has had a negative effect on the industry's development
- Outbreak of COVID-19 directly caused a reduced production capability at the beginning of 2020. Meanwhile, COVID-19 epidemic had also weakened consumers' purchasing power and lowered their future income growth expectation, resulting in sales reduction. In the first quarter of 2020, the year-on-year growths of output and sales volume of passenger cars declined largely, at 48.7% and 45.4% respectively.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Alternative-fuel technology and intelligent development will continue lead industry transformation
- With increasing of challenges of energy shortage, environmental pollution and driving safety, electrification and intelligence are becoming new directions of the industry.
Biggest companies in the Passenger Car Manufacturing in China
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
BYD Company Limited | 76,100.8 | |
SAIC Motor Corporation Limited | 60,306.7 | |
China FAW Group Co., Ltd. | 51,315.6 |
To view the market share and analysis for all 10 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including MPVs, SUVs and Basic vehicles. MPVs is the largest segment of the Passenger Car Manufacturing in China.
Trends and Insights
Sport utility vehicles (SUVs) make up the largest segment
- Sport utility vehicles (SUVs) are a kind of vehicle with the space function of a station wagon and the off-road capability of a cargo truck. SUVs can carry both passengers and cargo, which makes them more versatile. As SUVs have larger vehicle bodies and adjustable seats, they also provide customers with comfort and convenience in daily use.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Automobile Manufacturing in China
- Automobile Body and Trailer Manufacturing in China
- Auto Parts Manufacturing in China
International industries
- There are no industries to display.
Table of Contents
About this industry
Industry definition
The industry primarily manufactures complete automobiles used to transport passengers. The major products manufactured in this industry include basic passenger cars, multipurpose vehicles (MPVs), sport utility vehicles (SUVs) and mini buses.
What's included in this industry?
Basic vehiclesMPVsSUVsMini busesCompanies
BYD Company LimitedSAIC Motor Corporation LimitedChina FAW Group Co., Ltd.Purchase this report to view all 10 major companies in this industry.
Related Terms
SPORTS UTILITY VEHICLE (SUV)MULTIPLE PURPOSE VEHICLE (MPV) 4S AUTOMOBILE DEALERSPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
A shortage of upstream supply has caused particular negative effects on industry development. However, with measures having been taken to help solve the issue, the chip short...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Sport utility vehicles are the largest segment, accounting for 50.7% of total sales volume of the industry in 2024. Mini buses have the smallest market share, accounting for ...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Historically being a major car manufacturing center, Jilin is the largest passenger car manufacturing province. Being the second-largest passenger car manufacturing province,...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Market competition is becoming increasingly fierce. Passenger car manufacturers typically expand their market share through improving brand awareness and launching new produc...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry is dominated by state-owned enterprises. Companies BYD, SAIC Motor, FAW and BAIC Motor rank in the top four in terms of sales revenue in 2024.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of BYD Company Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of SAIC Motor Corporation Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of China FAW Group Co., Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 7 additional companies
Detailed analysis
- Description and key data for BYD Company Limited, and factors influencing its performance in the industry
- Description and key data for SAIC Motor Corporation Limited, and factors influencing its performance in the industry
- Description and key data for China FAW Group Co., Ltd., and factors influencing its performance in the industry
- Description, key data and performance trends for 7 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
There has been encouragement to develop new energy vehicles in the Chinese market. New energy vehicle market in China will be significantly more competitive, and major breakt...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit has declined resulted from fierce competition, especially after the COVID-19 outbreak. Car manufacturers have reduced sales prices in the face of increasing competitio...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Passenger Car Manufacturing industry in China in 2024?
The market size of the Passenger Car Manufacturing industry in China is $640.9bn in 2024.
How many businesses are there in the Passenger Car Manufacturing in China industry in 2024?
There are 128 businesses in the Passenger Car Manufacturing industry in China, which has grown at a CAGR of 1.6 % between 2019 and 2024.
Has the Passenger Car Manufacturing industry in China grown or declined over the past 5 years?
The market size of the Passenger Car Manufacturing industry in China has been growing at a CAGR of 1.4 % between 2019 and 2024.
What is the forecast growth of the Passenger Car Manufacturing industry in China over the next 5 years?
Over the next five years, the Passenger Car Manufacturing industry in China is expected to grow.
What are the biggest companies in the Passenger Car Manufacturing market in China?
The biggest companies operating in the Passenger Car Manufacturing market in China are BYD Company Limited, SAIC Motor Corporation Limited and China FAW Group Co., Ltd.
What does the Passenger Car Manufacturing in China include?
Basic vehicles and MPVs are part of the Passenger Car Manufacturing industry.
Which companies have the highest market share in the Passenger Car Manufacturing in China?
The company holding the most market share in China is BYD Company Limited.
How competitive is the Passenger Car Manufacturing industry in China?
The level of competition is high and increasing in the Passenger Car Manufacturing industry in China.
