SUVs to be star of the Beijing auto show
April 25, 2016 Category Automotive, Weekly
Sales of SUVs soared 52% last year. That helped the overall market grow 7.3% even though car and minivan sales fell. “Ten years ago, no one wanted an SUV because it was considered to be a bulky truck for peasants,” said Michael Dunne, Consultant on Chinese auto market strategy. “Now the cool factor has kicked in and SUVs are super-hot in the China market.” Scrambling for a piece of that action, automakers from General Motors and Volkswagen to local players Great Wall and BYD are making SUVs the star of this week’s Beijing auto show, the biggest of the year in the world’s biggest auto market. The show “will highlight the growing tension between international and local brands as they fight to outshine each other with new products,” said Namrita Chow of IHS Automotive in a report. Overall auto sales growth is likely to fall further this year to 6%, though total volume might reach 25 million vehicles. Total profit for Chinese brands fell last year despite a 10% sales growth, said Robin Zhu of Bernstein Research. Chinese brands account for 65% of SUVs sold, dominating the market’s lowest tiers, where profits are slim. This month, BYD Auto unveiled the Yuan compact SUV, starting at CNY59,000 for the gasoline version and CNY209,900 for a gas-electric hybrid. Also ahead of the Beijing show, Geely debuted the Boyue SUV, starting at CNY98,800. Fiat Chrysler Automobiles’ Jeep is due to debut its China-manufactured Renegade, while Honda Motor Co plans to unveil two SUVs designed for China, the Shanghai Daily reports.
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