Carmakers to put focus on SUVs at Beijing Motor Show, reports IHS
That’s the forecast from IHS Automotive, adding that the SUV segment continues to be where the main battle for growth is taking place in China.
According to IHS, production forecasts show 50 new SUVs will commence production in China this year, of which the majority (78%) are Chinese brand products.
It adds that in the last five years, Chinese brands have steadily been gaining market share in China. In 2014, the total volume of Chinese brands' products accounted for just 25% of the local passenger vehicle (PV) market. Today, Chinese brands account for 36% of the local PV market, based on sales in the first two months of this year.
The sport utility vehicle (SUV) segment is where most of the action is taking place. Chinese brands have now overtaken international brands in the SUV segment, and control 58% of the SUV market following strong growth in the first two months of the year.
Sales of SUVs are forecast to rise 12.76% year on year (y/y) in China, while the overall market share of SUVs has risen to 30% of total light vehicle (LV) sales in China, up from just 10% in 2010. Sales have grown from 1.6 million SUVs sold in 2010 in China, to over 7.7 million SUVs forecasted to be sold this year.
Geely Automobile has already released the Bo Yue SUV ahead of the Beijing show, which highlights the automaker’s strategy to gain market share in the SUV segment and follows the introduction of the GC9 sedan at the end of 2015.
Changan Auto has already teased the industry with its new CX70 which will be launched at the Beijing Show and IHS says the automaker will begin production of another SUV by year-end, the CS95. The production version of this new CS95 model will be shown by Changan at the Beijing Motor Show.
Chery Automobile will also add two new SUVs to its line-up this year. The new Tiggo7 SUV has been based on the TX Concept from Chery and will be unveiled at the Beijing Motor Show. And Chery will also begin production of another new SUV at the end of the year.
Great Wall Motor will also launch a new SUV at the Beijing Motor Show. The new Haval H7 is expected to be joined by a new engine variant of the Haval H9, which in the future is also rumoured to have a diesel variant.
In addition, Roewe from SAIC will launch a new SUV, Guangzhou Auto will add to its Trumpchi line-up with three SUVs this year, while Dongfeng Motor will add three new SUVs to its line-up in 2016. The number of SUVs that will commence production in China this year will add around 500,000 units in volume, increasing the total volume of SUVs forecasted to be sold in China this year to over 7.7 million units, while local production of SUVs will hit around 7.23 million units this year.
International automakers are pulling out the stops to gain a stronger foothold in the SUV segment. This year, Cadillac will begin production of the XT5 SUV. Honda will launch production of the Acura CDX, while Mazda will reveal the CX-4 SUV at the Beijing show and will also begin production of this new global model in China in the second quarter of the year. Renault has already launched production of the Kadjar SUV and IHS forecasts show that the automaker will by year-end begin production of another SUV in China. Peugeot will also bring in an SUV this year, while Japanese automakers Mitsubishi and Suzuki will also add SUVs to their existing models produced in China.
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