Falling car prices, increased domestic production, will drive future sales.
San Francisco, CA (PRWEB) June 08, 2013
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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