Influenced by continuous localization process, imported SUV account for less than 60% shares for the first time

Currently, the 13th China Imported Auto Forum was held in Beijing. Sinomach Automobile released 2016-2017 Research Report on the Development of China’s Imported Auto Market on the forum, which shows that the imported vehicle market faces decreasing supplies and demands, continuous inventory pressure and preferential prices in 2016.

According to data, there is a total imported volume of 830,000 units from January to October in 2016, decreasing 6.5%. Sales volume of imported vehicles delivered by dealerships reaches 727,000 units, decreasing 3.9%. It’s expected that the imported vehicle market has an annual sales volume of 1.1m units, decreasing 3%.

It’s noticeable that SUV models account for less than 60% of market shares for the first time. From January to September, the total imported volume of SUVs decreases 12.5%. And the number is 13.1% from January to October.

SUV models also show declining volumes in the growing parallel imported vehicle market. The share of SUV models decreases from January to October, and the numbers in July and September are less than 80%.

Report shows that imported SUV market has limited potential in increasing imported SUV market share, influenced by continuous localization process. But cars will face lifting shares, resulted by the launching of new products.

Chen Youquan, Board Director of Sinomach Automobile, believed that market supply will be the deciding factor for the growth of imported vehicle market during “13th-five” period. High-end demands, individual demands and alternative energy vehicles will be the main growing points.

It’s analyzed that with the localization of most A-class, B-class and C-class vehicles, under-A-class and C-class SUVs, D-class and E-class cars will be the main imported products. Under the guidance of national policies and adjustments of product structures by multi-national auto companies, new supplies will be the main growing points.