Lin Lei delivers a speech
Lin pointed out that the Chinese SUV market had gone through three development stages--- dominance of off-road SUVs, co-existence of off-road and on-road SUVs and dominance of on-road SUVs (after 2005, on-road SUVs began to take the dominance in the Chinese SUV market). In the narrowly-defined passenger vehicle market, the market share of SUVs is small but grows rapidly. In 2009, the year-on-year growth rate of SUVs reached 8.7%, even higher than that of sedans.
Currently, the domestic SUVs in the Chinese market can be divided into three groups by their countries of origin--- Chinese SUVs, Japanese SUVs, and Korean SUVs. Of them, Japanese SUVs hold the largest market share and the launch of RAV4 and Highlander in 2009 further boosts their sales. The market share of Korean SUVs also records a great increase since 2005, but the market share of Chinese SUVs shrinks gradually. The top 10 best-selling domestic SUVs of 2009 in China were all on-road SUVs, and the market performance of Japanese-origin SUVs was the most impressive. In addition, the SUVs priced between RMB 150,000-300,000 dominate the market with their market share achieving 63.9% in 2009, and most of them are Japanese-origin SUVs.
Of the imported vehicles, the SUV is the fastest-growing model and the biggest contributor to the sales growth of imported vehicles. According to the data released by China Automobile Trading Co., Ltd., the registration volume of imported vehicle in 2009 reached 353,000 units, up 30.9% over the previous year and the registration volume of imported SUVs in 2009 was 194,000 units, up 37.2% over the previous year.
The SUV market has become the second most important segment for passenger vehicle manufacturers, and the competition in this market is becoming increasingly fierce. Many domestic private companies and joint ventures are ambitious to enter this market--- the former will launch more domestically-made SUVs, and the latter will accelerate their localization processes. According to Lin, the SUV market in China will maintain fast growth in the next 3-5 years--- the domestic SUV market will continue to outpace the average growth rate of the narrowly-defined passenger vehicle market, and the imported SUV market will keep growing steadily.
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