Skip to content

China auto consumer insights 2019

Here’s what you need to know to navigate the road ahead in the world’s largest auto market

As slowing economic growth becomes the new norm in China, the Chinese passenger-vehicle market has bid farewell to years of high-speed growth and entered a new phase of development.

In the short term, this era is characterized by falling overall sales. But this is more a pause for breath than the end of the road, as the potential for growth remains strong (Exhibit 1).

Moreover, the proportion of new buyers is declining, and attracting and maintaining the loyalty of existing car owners is becoming increasingly important.

Meanwhile, Chinese automakers face an urgent challenge to reframe their strategy toward autonomous, connected, electric, and shared (ACES) vehicles and technology if they are to secure the revenue they need to compete on the world stage.

In light of this transition, which entails a period of intense competition and a narrowing of opportunity for weak and challenger brands, automotive executives of both foreign and domestic brands must strive harder to understand their customers and communicate their advantages.

The McKinsey 2019 China Auto Consumer Survey, upon which our new report, China Auto Consumer Insights 2019 (PDF–3.5MB), is based, offers insights into Chinese automobile consumers’ behavior and preference at every stage of the customer journey.

This year, our sample spanned 2,500 respondents of varying demographics and vehicle-purchase experience in 20 major Chinese cities, aiming to assess their attitudes to brand, choice of channels, product preference, price sensitivity, and after-sales behavior.

China remains the world’s largest automotive market, and it exhibits strong demand from both prospective and existing car owners, and for both new cars and, increasingly, used vehicles. As such, we believe the current downturn will be short-lived, and the future of automotive in China remains bright.

Below are some recommendations that will assist decision makers as we move into the next phase of development in the world’s largest automotive market.

Please click here to view the full press release.

SOURCE: McKinsey & Company

Welcome back , to continue browsing the site, please click here