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SUVs score bulls-eye in targeting market
July 23, 2012, Monday
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WHEN I first heard about China's auto market, I was told that sedans were the dominant model and that Chinese drivers did not appreciate the hatchback.
The shape of sedans physically separates the passenger seating from the luggage compartment, which hatchbacks don't do.
Therefore, it was natural for me to jump to the conclusion that Chinese people wouldn't appreciate sports utility vehicles (SUVs) either, for they combine passenger-carrying and cargo-hauling functions.
Since I moved to Shanghai three years ago, I have been in a better position to observe the Chinese automotive market. A few thoughts cross my mind with regard to SUVs.
In January 2008, 40,000 SUVs were sold in China, accounting for 7 percent of the new car sales. At that time, there were only 44 models from 22 brands available.
Five years later, we are seeing a phenomenal growth in the SUV segment in China: 64 brands have at least one SUV in their product portfolio, bringing the total number of models to 137. That's close to a third of the country's car offerings.
China's monthly sales of SUVs rose to a record 231,000 units in March.
The market share of the segment had gained from mere 8.3 percent in January 2008 to 17.2 percent this May.
By comparison, the SUV segment comprises just 10 percent of new car sales in the European market.
It's quite a success story for a car segment that was supposedly being overlooked by domestic vehicle owners.
Individual preference
From a pure functional point of view, SUVs do have their appeal. Every car buyer can find a model in the segment that fits individual preferences.
Models can have four seats or eight, three doors or five, two-wheel drive or four, a combustion engine or a hybrid, a length anywhere from 3.65 to 5.3 meters, a weight from one to 3.3 tons, and a price from 56,000 yuan (US$8,790) to over 2.2 million yuan. The range of choices is quite incredible.
One might argue that the mid-car segment, which usually targets families of three to five people, can also address purely functional needs, but in reality, this segment has proved less attractive to Chinese drivers.
SUVs are particularly popular among the second car drivers in China - those who already have a car.
As experienced motorists, they are confident about their driving skills and eager to demonstrate their prowess on the road.
Many Chinese look upon their vehicles as status symbols, and the elevated driving position of SUVs gives drivers a sense of dominance.
Being higher up from the ground, drivers feel more secure from highway dangers. This perception is reinforced by the external design of SUVs, with visible protection devices along the sides and on the front of the car.
SUVs also feature large width, muscled wheel arches and aggressive front grills, which convey strength, robustness and, most importantly, power.
Off-road terrain
Although SUVs lend themselves well to rugged off-road terrain, the urban market for them is also growing fast, answering the need of those who consider the city a dangerous and inhospitable place, which is what it feels like sometimes.
The city SUV has a wide range of features designed for the urban driving, including reverse radar, automatic parking assistance and lower trunk threshold.
The evolution of SUVs shows us how carmakers can address the changing needs of consumers by taking initiatives to change the status quo.
The shape of sedans physically separates the passenger seating from the luggage compartment, which hatchbacks don't do.
Therefore, it was natural for me to jump to the conclusion that Chinese people wouldn't appreciate sports utility vehicles (SUVs) either, for they combine passenger-carrying and cargo-hauling functions.
Since I moved to Shanghai three years ago, I have been in a better position to observe the Chinese automotive market. A few thoughts cross my mind with regard to SUVs.
In January 2008, 40,000 SUVs were sold in China, accounting for 7 percent of the new car sales. At that time, there were only 44 models from 22 brands available.
Five years later, we are seeing a phenomenal growth in the SUV segment in China: 64 brands have at least one SUV in their product portfolio, bringing the total number of models to 137. That's close to a third of the country's car offerings.
China's monthly sales of SUVs rose to a record 231,000 units in March.
The market share of the segment had gained from mere 8.3 percent in January 2008 to 17.2 percent this May.
By comparison, the SUV segment comprises just 10 percent of new car sales in the European market.
It's quite a success story for a car segment that was supposedly being overlooked by domestic vehicle owners.
Individual preference
From a pure functional point of view, SUVs do have their appeal. Every car buyer can find a model in the segment that fits individual preferences.
Models can have four seats or eight, three doors or five, two-wheel drive or four, a combustion engine or a hybrid, a length anywhere from 3.65 to 5.3 meters, a weight from one to 3.3 tons, and a price from 56,000 yuan (US$8,790) to over 2.2 million yuan. The range of choices is quite incredible.
One might argue that the mid-car segment, which usually targets families of three to five people, can also address purely functional needs, but in reality, this segment has proved less attractive to Chinese drivers.
SUVs are particularly popular among the second car drivers in China - those who already have a car.
As experienced motorists, they are confident about their driving skills and eager to demonstrate their prowess on the road.
Many Chinese look upon their vehicles as status symbols, and the elevated driving position of SUVs gives drivers a sense of dominance.
Being higher up from the ground, drivers feel more secure from highway dangers. This perception is reinforced by the external design of SUVs, with visible protection devices along the sides and on the front of the car.
SUVs also feature large width, muscled wheel arches and aggressive front grills, which convey strength, robustness and, most importantly, power.
Off-road terrain
Although SUVs lend themselves well to rugged off-road terrain, the urban market for them is also growing fast, answering the need of those who consider the city a dangerous and inhospitable place, which is what it feels like sometimes.
The city SUV has a wide range of features designed for the urban driving, including reverse radar, automatic parking assistance and lower trunk threshold.
The evolution of SUVs shows us how carmakers can address the changing needs of consumers by taking initiatives to change the status quo.
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