SUVs - China | Statista Market Forecast

SUVs - China

China

Highlights

Revenue in the SUVs market is projected to reach US$227bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.96%, resulting in a projected market volume of US$238bn by 2029.
SUVs market unit sales are expected to reach 8.9m vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$27k.
From an international perspective it is shown that the most revenue will be generated United States (US$333bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The SUVs market in China has been experiencing significant growth in recent years.

Customer preferences: Chinese consumers have shown a strong preference for SUVs due to their versatility, spaciousness, and perceived safety. SUVs are seen as a status symbol and are often associated with a higher social status. Additionally, Chinese consumers value the higher driving position and better visibility that SUVs offer.

Trends in the market: One of the key trends in the Chinese SUVs market is the increasing demand for electric SUVs. With the government's push for electric vehicles and the growing concern over air pollution, Chinese consumers are increasingly opting for electric SUVs as a more environmentally friendly option. This trend is expected to continue as the government provides incentives and subsidies to promote the adoption of electric vehicles. Another trend in the market is the emergence of domestic Chinese SUV brands. Chinese automakers have been investing heavily in research and development to improve the quality and design of their SUVs, and they have seen significant success in gaining market share. Domestic brands are able to offer competitive pricing and cater to the specific preferences of Chinese consumers, which has contributed to their popularity.

Local special circumstances: One of the unique factors in the Chinese SUVs market is the presence of government regulations and policies. The Chinese government has implemented measures to control vehicle emissions and promote the adoption of electric vehicles. These policies include restrictions on the purchase of traditional internal combustion engine vehicles in certain cities, as well as subsidies and incentives for electric vehicles. These regulations have had a direct impact on the preferences and purchasing decisions of Chinese consumers, leading to the growth of the SUVs market.

Underlying macroeconomic factors: The strong economic growth and rising disposable income in China have also contributed to the growth of the SUVs market. As more Chinese consumers enter the middle class and experience an increase in purchasing power, they are more likely to consider purchasing an SUV. Additionally, the rapid urbanization in China has led to increased demand for larger vehicles that can accommodate families and provide a comfortable driving experience. In conclusion, the SUVs market in China is experiencing significant growth due to customer preferences for spacious and versatile vehicles, the increasing demand for electric SUVs, the emergence of domestic Chinese brands, government regulations and policies, and the underlying macroeconomic factors of strong economic growth and rising disposable income. This trend is expected to continue as Chinese consumers continue to prioritize SUVs for their practicality and status symbol.

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).