Improvement in Consumption Has Caused Drop in Sales of Subcompact in China
Sales of subcompact dropped by 31% while there was double-digit increase in sales of the auto market overall in China in August.
Consumers in China now have preferred SUVs to subcompacts. Moreover, reportedly, Chinese automakers have reduced investment on development of subcompacts, leading to a great drop in market share.
Sale of small car was 2.1851 million units with a year-on-year rise in 2011, taking up 21.6% of market shares. However, that was only 2.1971 units in 2012, with a slight rise of 0.3%. In the first half of 2013, sales of subcompact dropped by 2.7%. In the first eight months this year, market share of small cars was only 15.3%.
Chinese consumers prefer vehicle of large space and displacement, leading to great increase in sales of SUV. Now, market share of large car has been 65%, indicating improvement in consumption structure.
Development in consumption structure is inevitable, which means there may be great changes in customer demands.
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