China Luxury Car Market Size By Vehicle Type (Hatchback, Sedan, SUV), By Drive Types (IC Engine, Electric Vehicles) And Forecast

China Luxury Car Market Size And Forecast

China Luxury Car Market size was valued at USD 161.55 Billion in 2024 and is projected to reach USD 189.28 Billion by 2031, growing at a CAGR of 2.00% from 2024 to 2031.

The key driver of the segment’s expansion is China’s ongoing rise in ultra-high-net-worth people (UHNWI) and high-net-worth individuals (HNWI). As a result, demand for luxury automotive sales has migrated toward nations such as China. More regional demand for high-priced vehicles has drawn new participants to the market as a consequence of strong geographical and technical advancements, notably in China, leading to more new model debuts. In terms of growth pace, most major luxury brands consider China to be the fastest-growing market.

China Luxury Car Market Definition

A luxury car is a broad category of modern cars that prioritize passenger and driver comfort through opulent interiors, expanded capabilities, and cutting-edge safety features. When compared to modestly priced traditional automobiles, these vehicles provide a higher degree of technology and convenience. They may be tailored to individual desires, with visually pleasing designs and features such as Bluetooth or wireless fidelity (Wi-Fi) entertainment systems, sensors, anti-lock brakes, cameras, and more.

These technologies make driving safer by providing rearward visibility and security warnings while also optimizing overall vehicle efficiency. In China, luxury automobiles are extensively accessible, serving both business and passenger demands and offering a variety of engine systems to meet diverse preferences.

China Luxury Car Market Overview

China's been giving its auto industry a boost, which has helped luxury car sales and brought in fresh investment. Think of it as a helping hand from the government! They're even considering tax cuts to really get things moving again. This could be a game-changer for the car industry there. Plus, the government is letting foreign automakers team up with even more Chinese partners—most already have a bunch through joint ventures. And now, they can even set up shop completely on their own. This all means more opportunities for premium car brands to jump into the Chinese market and make a splash!

Luxury car brands, though, are trying to make their cars a little more affordable to boost sales in the future. Get thiselectric cars and plug-in hybrids are expected to make up 25% of all new car sales in China this year. Some experts say there are over 300 Chinese companies building EVs, everything from super cheap rides under $5,000 to fancy ones giving Tesla and German automakers a run for their money. Plus, there are already over four million charging stations in the country - that's more than four times what they had last year - and they're building even more! Big players are also working hard to create top-of-the-line electric cars all over China.

The rising offers of tangible opulent characteristics inside autos, as well as the shifting customer preference for branded autonomous luxury vehicles over conventional transit modes, are driving the industry in China. This is also driven by increased disposable money and customer knowledge of the benefits of luxury automobiles, including safety, resale value, prestige, the coexistence of beauty and comfort, cutting-edge technology, and the ability to add personalized flair. In conjunction with this, another growth-inducing aspect is the increased need for a comfortable driving experience and upgraded security measures to assure passengers’ optimal safety.

China Luxury Car Market Segmentation Analysis

The China Luxury Car Market is Segmented on the basis of Vehicle Type Drive Types, And Geography.

China Luxury Car Market, By Vehicle Type

• Hatchback
• Sedan
• SUV

Based on Vehicle Type, the market is segmented into Hatchback, Sedan, and SUV. The SUV segment is expected to have a significant share of the market. During the projection period, the SUV category will account for a significant market share. SUVs have a better ride, more ground clearance, and more room. The rising trend of purchasing SUVs is driving market expansion. The sedan segment, on the other hand, is expected to increase rapidly in the future years. The growing demand for sedans among government officials and middle-aged industrialists in the country is propelling the market segment forward.

China Luxury Car Market, By Drive Types

• IC Engine
• Electric Vehicles

Based on Drive Types, the market is segmented into IC Engine and Electric Vehicles. The electric vehicle category is expected to account for a significant portion of the estimated timescale. Because of the growing demand for electric vehicles, the sector continues to have enormous potential. premium carmakers reported strong sales growth in 2018, with a surge in demand for electrified premium vehicles among the young population.

China Luxury Car Market, By Geography

• Asia Pacific
• China
• Japan
• India
• Rest of Asia Pacific

On the basis of Geography, the market is classified into the Asia Pacific Region having countries like India, China, Japan, and the Rest of Asia Pacific.

Key Players

The “China Luxury Car Market” study report will provide valuable insight with an emphasis on the China market including some of the major players such as BMW Group, Volkswagen Group (Audi AG), Mercedes-Benz AG, General Motor Company, Zhejiang Geely Holding Group, Infinity (Nissan Motor Co. Ltd), JAGUAR LAND ROVER LIMITED (Tata Motors Limited), Tesla Inc., Dongfeng Motor Company, Acura (Honda Motor Co. Ltd).

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players in China.

Key Developments

• In November 2022, According to BYD’s official Weibo account, the company’s new premium automobile brand would be known as “Yangwang.” It will have a new and autonomous team for branding, goods, sales and service network, and operations, with items set to be formally introduced in the first quarter of 2023.
• In August 2022, At the 2022 Chengdu Motor Show, Infiniti will officially unveil the QX55, an all-new premium SUV. It will be offered in the nation as an imported model. It comes in four different configurations (one FWD and three AWD), with costs ranging from CNY 389,800 (USD 55,987.36) to CNY 475,300 (USD 68,267.81).
• In August 2022, Dongfeng Motor Company Limited (Dongfeng Motor) conducted a news conference in Wuhan, Hubei Province. At the conference, Dongfeng Motor unveiled Mengshi, a luxury off-road EV (electric vehicle) brand, as well as its own “M” logo. The first Mengshi model will be available in 2023.
• In July 2022, The new Hongqi H5 mid-size luxury car has been launched by China FAW Group Co., Ltd (FAW). It comes in seven different configurations, including two HEV versions. CNY 159,800 (USD 22,952.23) to CNY 225,800 (USD 32,431.88). When compared to previous versions, the new model has improved in look, size, and power.
• In April 2022, Maxus, a Chinese luxury manufacturer, has introduced its new premium MPV G90 in China.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. Porter’s five forces model can be used to assess the competitive landscape in China Luxury Car Market gauge the attractiveness of a certain sector, and assess investment possibilities.

Report Scope

Research Methodology of Market Research

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Reasons to Purchase this Report

We'll dig into the market using both qualitative and quantitative approaches, segmenting it by everything from money matters to other, less obvious things. You'll get hard numbers – USD Billion – for each market slice. We'll pinpoint the region and specific area poised for the biggest boom and market leadership. Plus, we'll break down product/service consumption by region and the local factors that are shaping each market. Expect a competitive rundown, complete with major player rankings and a look at their latest moves (new products, partnerships, expansions, and acquisitions) over the last five years, alongside detailed company profiles covering everything from overviews and insights to product comparisons and SWOT analyses. We'll also give you the present and future outlook, highlighting growth drivers, opportunities, and potential roadblocks in both emerging and established markets. Get ready for a deep dive with Porter's Five Forces analysis and a clear view of the Value Chain. We'll paint a picture of the market's dynamics and highlight where the growth opportunities lie in the years ahead. And finally, we'll back it all up with 6 months of analyst support after you receive the report; we're here to help!

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