Car Dealers in China Industry Research Report – Now Available from IBISWorld

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In the five years to 2013, the Car Dealer industry in China has been growing at an annualized rate of 24.0% to reach $387.1 billion. After a boom in car sales in 2009 and 2010 – driven by favorable government policies – industry revenue growth slowed down in 2011 and 2012.

Falling car prices, increased domestic production, will drive future sales.

In the five years to 2013, the Car Dealer industry in China has been growing at an annualized rate of 24.0% to reach $387.1 billion. After a boom in car sales in 2009 and 2010 – driven by favorable government policies – industry revenue growth slowed down in 2011 and 2012. In 2013, car sales are expected to recover gradually, says IBISWorld.

Demand for passenger cars in China has increased substantially in the past decade. Initially, demand increased in China's major cities, such as Beijing and Shanghai, says IBISWorld. Demand in China's second-tier and third-tier cities has also increased at a rapid rate in recent years. Major demand drivers have been increased household income levels, increased domestic production of automobiles, and lower pricing levels by manufacturers and retailers. The most common types of vehicle retail and service dealers in China are 4S (sales, spare parts, service and survey) stores.

The top four companies in the Car Dealer industry in China– China Grand Automobile Service, Pang Da Automobile Trade, Lei Shing Hong Group, and Yuantong Mechanical & Electrical Equipment – account for about 11.3% of industry revenue in 2013. In different product segments, concentration levels can vary, however. The higher the vehicle value, the higher the concentration level, says IBISWorld. For example, the number of Porsche dealers in China is limited, which increases the concentration level of this brand and the luxury market segment.

Over the next five years, car prices will continue to decrease, as higher demand and supply volumes, import tariff reductions and increased efficiencies drive down costs. Greater demand is also expected from China's second-tier and third-tier markets, says IBISWorld.

For more information, visit IBISWorld’s Car Dealers in China industry report page.

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IBISWorld Industry Report Key Topics

The Car Dealer industry in China retails new and used passenger automobiles. These cars are used to carry passengers and their personal luggage, and have no more than nine seats. The main products retailed within this industry include: sedans and general cars, multi-purpose vehicles (MPVs), sports utility vehicles (SUVs), and cross-over passenger cars.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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