Summary: Prospects for hatchback sales in China

Gasgoo.com (Shanghai) - According to China Passenger Car Association statistics compiled by Gasgoo.com (Chinese), a total of 921,732 sedans were sold in China over the month of May. The figure, which represents slight year-on-year growth of 0.6%, marks the first month in several that Chinese sedan sales haven’t fallen.

One thing worth mentioning is that only one of the 20 best-selling sedan models in the month of May was a hatchback model: the VW New Polo. By comparison, other previously best-selling hatchbacks like the Ford Focus and Honda Fit have seen their rankings on the sales charts greatly undermined.

A major reason why hatchback models have become a lot less popular is because their market share has been eaten up by more attractive compact SUVs. Previously these two categories of vehicles dominated different price brackets, with small SUVs priced in the 160,000 RMB to 200,000 RMB range, while hatchbacks were priced in the 90,000 RMB to 150,000 RMB range. However, In response to increased competition, prices for entry-level SUVs have been constantly slashed. Now priced in the 100,000 RMB to 150,000 RMB range, these small SUVs show tremendous prospects for growth as consumers flock to them for their roomier interiors and clearer views of the road. As a result, hatchbacks, which have already been suffering due to declining sedan sales across the board, have now had to deal with fierce competition from vehicles more attractive to the typical Chinese consumer.