China’s car market is huge. It is home to the biggest brands and models as well as the most expensive and cheapest vehicles. Whether you live in China or somewhere else, you might still don’t know many things about this gigantic market. Here are some facts about the Chinese car market:
It is the Largest Passenger Car Market in the World
The car market in China is the largest market for passenger cars. It started to achieve this status in 2009 and continues to keep it since. In fact, this year, the sales growth for passenger cars is projected to reach 8%, sizing the automobile market at 22.8 million sales.
This is Where you Find the Most Models and Brands
Car buyers in China can pick between more China cars and brands. The Chinese car market has a staggering number of car brands. Car brands in the country include local and foreign brands as well as sub-brands under foreign-Chinese car manufacturing joint ventures. Often, local brands sell vehicles under different brands that feature their own logo, sales, and marketing channels.
It’s Where you can Buy the Most Expensive Cars in the World
The country charges hefty taxes on vehicles with at least four liters of engine capacity. This contributes to how exclusive cars are priced in the country. Cars here can cost more than their price elsewhere. But, a big part of the entire difference comes from the potential of car manufacturers charge higher prices in the country considering the eagerness of Chinese buyers to spend money on exclusive cars.
It is Home to the Cheapest Cars
Average car buyers in the country pay less for an affordable China car than buyers in other countries. This is because the Chinese car market is also home to the cheapest cars in the world, in nearly all categories. Car prices can be so low as car manufacturers usually make use of decades-old platforms and technologies to lower the manufacturing cost. Also, the labor and development costs are low. But, while the margins are thin, the majority of manufactures only produce just enough models that they can sell.
China cars are not only available in China itself. The expanding reach of the Chinese car market has allowed it to reach more and more countries that include Indonesia. But, China is expected to remain an exciting nation for the auto industry for a long time.