China's SUV sales expected to grow 20% in '09

Shanghai, February 24 (Gasgoo.com) Following the rapid growth its SUV market in 2008, China may see the sales of SUV models grow by nearly 20% this year from 447,700 units sold in 2008, to more than double the average auto market growth rate, xinhuanet.com said today, citing the forecast of an industry survey firm.

In 2009, more than ten SUV models will be launched to the Chinese auto market. The Volvo XC60, Lexus RX350, and Acura RDX will come to the luxury SUV segment. FAW Toyota, Shanghai VW, Hainan Mazda, GAC Toyota will also roll out their SUV models this year. The Toyota RAV4 to be made by FAW Toyota will compete with the Honda CR-V at a price above 200,000 yuan ($29,300).

In addition, the Chinese-brand SUV models such as Great Wall Motor's Hover and Chery Auto's Tiggo are likely to maintain their sales growth in the low- and mid-end market. Geely Auto will also release its first SUV model, Geely NL, in 2009. Chery Auto will launch its new 1.6L Tiggo 3 this year, while Great Wall will put 1.3L, 1.5L mini SUV models to the market.

The sales of low-emission SUV models have been growing remarkably in the Chinese market. Last year, the 2.0L-minus SUV models sold 213,400 units, accounting for 47.67% of the total SUV sales. The 2.0L-2.5L SUV models sold 180,900 units, or 40.41% of the total, and the 2.5L-plus SUV models only sold 53,400 units.

China's SUV market has huge potentials for growth as SUV sales currently make up less than 5% of the Chinese auto market, compared with SUV's 20% coverage rate of global markets. With the launch of many new models, more Chinese customers will buy SUVs. China's SUV sales are expected to grow by 20% this year.