Demand for large vehicles increases in Chinese car market

The Chinese car market is one of the most prolific in the whole world right now, which is why so many car manufacturers are trying to appeal to the Chinese public and benefit from the expanding market. Compact and eco-friendly cars used to be the most popular type of vehicle in China, especially as the country is so keen to reduce its pollution and carbon emissions, which is why it’s surprising that it’s been revealed that SUVs are now becoming increasingly sought after in the Chinese car market.

At the Shanghai auto show last weekend there was a range of midsize and sports utility vehicles on show that proved extremely popular with the visitors, so much so that many car manufactures are planning on producing more of these types of vehicles in the near future. For example, General Motors has recently announced that they will be introducing nine new or restyled SUV models in China within the next five years and that they are planning on buying more factories and creating six thousand more jobs in the country in order to keep up with demand.

Meanwhile, other big names in the car manufacturing business such as Chrysler have also announced that they will be producing Jeep Cherokees in Changsha in southern China by the end of next year, and Ford has already started promoting its Lincoln brand across the country. Discussing the increase in demand for SUVs, president of GM China, who is in direct competition with China’s most popular car manufacturer Volkswagen, Bob Socia said: “Our focus is on luxury vehicles and SUV’s going forward. Not long ago, both were considered niche segments. Both are now mainstream and growing rapidly.”

Whilst Volkswagens used to be the most popular cars in China, other companies are starting to see their sales increase as since March last year alone the percentage of new car sales has jumped by a massive 49 per cent. Not only is this great news for car manufacturers but also others that depend on the motor industry such as motor insurance providers, service centres and mechanics, as well as the Chinese economy in general. It will be interesting to see what cars will be popular in six months’ time, and how car manufacturers across the world will attempt to keep up with these changing demands.

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