China, now the world’s largest automotive market, is a goldmine for ambitious manufacturers. As “tier 1” cities like Beijing and Shanghai implement license plate restrictions to mitigate congestion, demand is rising in the country’s smaller cities. Since these cities are less likely to have such restrictions, it may explain the rising demand.
But what exactly are Chinese consumers wanting in their next automobile"
By The Numbers
Registered vehicles in Chinese cities with no license plate restrictions is expected to jump to about 23.7 million in 2020, up from 10.8 million in 2010. By contrast, registrations in restricted cities is expected to fall to 1.6 million in 2019, from a peak of 2.2 million in 2010. The data is according to IHS Markit?s latest China Provincial Forecast. And like in the United States, SUVs are all the rage.
Last year, the McKinsey Center for Future Mobility noted that China’s midsize SUV segment experienced an annual growth rate of 38 percent between 2012 and 2016. As a result, Chinese manufacturers are packing the market with SUVs, although one Michigan-based automaker wants a bigger piece of the pie.
Joint Collaboration
Meet the Ford Territory, an entry-level, midsize SUV, developed in partnership with Jiangling Motors Corporation (JMC).
?The Territory is a breakthrough for Ford in China in terms of our ability to successfully compete with Chinese automakers for millions of customers that we do not currently serv...