China’s rise in the global new energy vehicles market is analyzed to reflect the growing impact of increasing technological advancements and competition. The China new energy vehicles market has seen the rules of the game changed as consumers, especially the young lot, are putting large emphasis on quality. This is surprising because unexperienced consumers are usually attracted to flashy stuff instead of paying more attention to quality. However, this has changed now, and consumers are willing to shell out money on high-quality vehicles.
China is witnessing a rising trend of consumption upgrade, which is foretold to orchestrate its lead in the global new energy vehicles market. The country is witnessing strong demand for more technologically sophisticated functions in new energy vehicles.
Manufacturers to Target Older Consumers in Third-tier Cities
Third-tier cities in China are expected to become a new battleground for automakers in the near future. However, it may not be easy for new energy vehicles manufacturers to make their offerings appealing to consumers in third-tier cities, who are generally older. Potential consumers in third-tier cities stress more on maintenance cost, vehicle price, convenience, and comfort when it comes to vehicle purchase. Most of them are first-time purchasers of new energy vehicles and have a relatively low income.
Furthermore, vehicle owners in third-tier cities hesitate to accept new channels – they mainly depend on outdoor advertisements, vehicle exhibitions, recommendations from sales consultants, introduction from family and friends, and official stores to get vehicle information. Moreover, they highly demand battery services from manufacturers and commonly choose those with a wider service network.
Young, Educated Consumers are the Cream of China New Energy Vehicles Market
Young consumers have always been the favorite in the automobile industry. China is anticipated to take big strides in the global new energy vehicles market as manufacturers gain high sales from young and educated consumers who give priority to power performance, space, and riding convenience.
Young and educated consumers are also observed to give more preference to vehicles with a sense of technology than those going hard on fashion and elegance, although appearance still remains a theme. Therefore, young new energy vehicles owners find connection services and autonomous driving quite appealing. They significantly demand continuous upgrades and developments in vehicle operating systems and free APP access.
Low Availability of Charging Stations to Disturb China’s Growth in Global New Energy Vehicles Market
Sales of battery electric vehicles (BEVs) have grown tremendously in China in the recent years. This is envisaged to augur well for China as it aims big in the global new energy vehicles market. By technology, BEVs are projected to secure a leading position in the global new energy vehicles market, which may also be evident in China.
However, availability of charging facilities is currently a headache for new energy vehicles manufacturers. It may pose a challenge to China in the global new energy vehicles market. Nonetheless, some parts of the country such as Southeast China have shown quick growth in the number of public charging facilities. However, there is still a wide gap between the number of charging stations and BEVs that manufacturers have to deal with.
Nevertheless, against the odds, China’s success in the global new energy vehicles market is foreseen to continue to increase on the back of the improvements in products and services, technological innovation, and high focus on providing solutions for key pain points of consumers.
April 26, 2019
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