China’s auto market, the world’s largest, turns on the economic and social polices of the government. So what’s in store when the nation’s 13th Five-Year Plan kicks off in 2016? The experience of the past may be the signpost of the future.

In the years from 2000 to 2005, when China’s economy was bubbling along, passenger car sales rose an average 38 percent a year, from 600,000 units to 3.19 million. In the next five years, the market expanded about 29 percent annually, with sales hitting 11.3 million in 2010. In the last five years, as the nation’s growth slowed, car sales braked to growth of 12 percent.

As car ownership has surged, so have vehicle-related problems. Traffic capacity is choked in major cities and the density of vehicles contributes to periodic blankets of smog in some areas. Officials tapped the brakes on car purchases, starting in Beijing in 2011 and expanding to eight cities by 2015.

As it enters the 13th Five-Year Plan, China is trying to keep vehicle numbers in line with what the environment can handle, without imposing the kind of draconian measures that trigger panic buying ahead of their implementation. The China Passenger Car Association calls it the coming era of “natural growth.”

The current year might be viewed as one of transitions to that new era, or what the central government calls the “new normal” of moderate, sustainable economic growth.

The age of masstige

Masstige, a word coined to refer to mass-produced, relatively inexpensive goods that are marketed as luxurious or prestigious, is now applicable to the auto industry amid fierce price wars.

In the price range of 200,000 yuan to 300,000 yuan (US$30,860 to US$46,290), a tangled war has broken out between B+ and C- segments, between the top-ranging models of mass-market brands and the entry-level offers of high-volume luxury players.

China’s “face consumption” culture highly worships prestigious nameplates, while its pragmatic side leans toward the saying, “Better be the head of a dog than the tail of a lion.”

Making up for the lack of brand premium with upgraded vehicle features is a strategy that has made a comeback this year, as extravagance and flamboyance fade along with China’s gilded car age.

Among the example of masstige, Ford Taurus brands now sell for between 248,800 yuan and 348,800 yuan, offering a space even bigger than some luxury-branded products in the same segment.In the back seat, which has become a nuanced symbol of status in China, the car boasts a number of segment firsts, including inflatable seat belts and power-reclining seats with optional adjustable lumbar support and a massage function.

Accommodating larger families

“A car for a second baby” has suddenly become the buzz phrase for carmakers since China announced the abolition of its single-child policy, allowing all couples to have two children.

“A bigger family needs a bigger car!” Carmakers cannot wait to convince consumers of the merits of their seven-seater SUVs and seven-seater MPVs.

The three-row SUVs, having been long overlooked by urban travelers who prefer a more compact size, may now be entering their heyday in upscale offers by both mass-market and luxury brands. The Ford Edge, Land Rover Discovery Sport, Volvo XC90, and Toyota Highlander head the list of 7-seater SUVs launched this year, all touted with innovative 5+2 seating. Hauling a big family around in these cars feels stylish, but they are not always comfortable because the additional flexible seats can be really tight spots.

Targeting those weaknesses with independent seats and sliding-door designs, MPVs traditionally defined as minivans and used primarily as commercial vehicles are now also being marketed to families. The chief purveyors are carmakers in the mid- to low-end of the market, where MPV offers are concentrated. They include the newly launched BAIC Huansu H3 and Dongfeng Fengxing S500, both selling for under 100,000 yuan. On the far side of the price spectrum is the newly imported Toyota Alphard, a seven-seater MPV highly sought-after by wealthy families. It costs between 759,000 yuan and 814,000 yuan.

‘Under the Dome’

The undisputed controversial documentary of the year is “Under the Dome,” which awakened the Chinese public to its shared responsibility for the country’s air pollution miasma. Although it may not be the only cause, vehicle exhaust is copping a lot of the blame.

Still, it’s an uphill battle to convince ordinary consumers that it is in their best interest to ditch traditional combustion-engine cars and buy clean energy models, especially when there aren’t enough sweeteners to sway their buying choices.

The fledgling status of electric cars has been eroded by governments scaling back on purchase subsidies and other incentives. Toyota’s locally produced hybrids, which for the first time make semi-green vehicles as affordable and convenient to use as petrol cars, may hold sway over the cleaner energy market for some time.

Having their electricity generated within the hybrid system without the need for external recharging, Toyota hybrids don’t qualify for any subsidy programs in China, where they are regarded as a “half-way solution” in cutting emissions and saving fuel. But consumers, who have been finicky about embracing all-electric cars, seem to like the solution as they wait for more extensive electricity charging stations to be built.

One month after the launch, Toyota’s hybrid Corolla and Levin each received about 5,000 orders, outperforming China’s best-selling officially recognized green car — the BYD Qin.

From 2016 to 2020, China plans to implement the most ambitious fuel economy standards in the world, seeking to bring the level from 6.9 liters per 100 kilometers down to 5 liters. Environmentally conscious consumers will be asked to choose sides — either buy into the official promotion of purely electric cars and plug-in hybrids or stick with more market-friendly players like Toyota.

Differences notwithstanding, both sides claim to be promoting the interests of the general public, breathing the same air under the same sky.