Carmakers turn bullish on medium and high-end MPV market in China

Shanghai (Gasgoo)-A growing number of carmakers launched their MPV models recently, aiming to march into the medium and high-end MPV market. Among them, the most striking models are the Buick GL6 MPV and the GAC Trumpchi GM8 MPV. As a leading brand in the medium and high-end MPV market, SAIC GM's Buick continues to eye the MPV segment and recently released a six-seater family MPV, the GL 6 with a price range between RMB 144,900 and RMB 166,900, which further lowers the entry-level price for MPVs. GAC Trumpchi, another booming MPV brand, also revealed its high-end MPV, the GAC Trumpchi GM8 with price range between RMB 180,000 and RMB 270,000. At the same time, JAC Refine and BYD also released medium and high-end MPV models to deploy the segment. 

During the last ten months, the total sales of MPVs reached 1,475,553 units with a year-on-year drop of 25.88%. The reasons that result in the falling are as following: first, the phasing out of preferential policy for vehicle purchase tax largely decreased the sales of small-size MPVs; second, the solid and steady economic base, the rising incomes, vehicle purchase restrictions in some big cities and the trend of high-end consumption lead people's consumption concept to change. It is a consumption trend to buy decent, high-quality and differentiated products currently.

Statistics from Gasgoo showed that the sales of self-owned MPV models decreased while the high-end MPV models under JV brands increased quickly. Among them, the Buick GL8 upgraded model contributes a lot for MPV sales growth. The Honda Odyssey and Elysion also help MPV gain market shares gradually. Moreover, the new Buick GL6 sold more than 3,000 units in one month after launch.

Generally speaking, the MPV suffered sales slump in 2017. According to the sales data, the low-end MPV market saw a smaller sales growth in 2017, while the medium and high-end MPV gradually gained its market shares. These changes can be attributed to the upscale of consumption concept, the opening up of two-child policy and the introduction of new MPV models. Compared with the seven-seater SUV models, the MPV models are more spacious and can deliver more comfortable driving experience. Its flexible products position greatly meets the consumers' needs, driving more and more carmakers to enter into the MPV market. Currently, though the market shares of MPV still remains small, it is promising for the medium and high-end MPV market to see a sales growth in the future in China. 

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