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Customer LoginsBeijing Motor Show 2016: Automakers showcase models for consumers and government in China
One of the world's largest motor shows will open its doors on Monday (25 April) and automakers are scrambling to get out the message that they have products to entice consumers and appease the Chinese government.
IHS Automotive Perspective
- Significance: The SUV segment continues to grow, but automakers are also keen to highlight they can produce vehicles that meet China's fuel economy and new energy vehicle (NEV) requirements.
- Implications: IHS Automotive forecasts that NEV sales will continue to grow in China as the government seeks to attract consumers to the segment.
- Outlook: Despite the double-digit percentage growth expected for NEVs, the segment remains a small slice of the huge pie that is the Chinese car market.
The Beijing Motor Show opens its doors to the media and industry VIPs on Monday (25 April). The show promises to be a vast display of enticing sport utility vehicles (SUVs), as well as a smattering of new energy vehicle (NEV) variants to appease the Chinese government in its quest for the country to be a leader in cleaner and greener vehicles.
Some Chinese automakers have begun to release teasers of their latest SUVs just ahead of the show, while others have used the weeks and days leading up to the show to launch products to build consumer awareness before the exhibition opens. In the last few days, Shanghai Automotive Industry Corp (SAIC) has released images of the Roewe RX5 SUV, with the new model to be launched at the Beijing Motor Show.
Meanwhile, Changan Auto has released teaser images of the CX70 SUV and Dongfeng Motor has shown the new AX7 SUV and has published teaser images of the AX5. In addition, Geely has released the new Boyue SUV and BYD has launched the Yuan SUV. Beijing Auto Industry Corp (BAIC) has released teaser images of the Senova Offspace Concept car − a large SUV − which is poised to lead to a 2017 production variant. Additionally, there is the supercar from Qiantu Qiche. The K50 electric supercar is expected to be shown at the Beijing show and local media reports claim the model is the production variant for release later this year.
Meanwhile, international automakers have also highlighted their commitment to the introduction of new and refreshed SUVs following announcements by a number of brands. However, automakers are also keen to show that they can produce models that meet the government's mission to raise the volume of green and clean-emission vehicles in China.
Chinese automakers have highlighted they can meet demand for these vehicles. Chery released the new FV2030 electric concept in Beijing yesterday (20 April), while EV start-up LeEco has unveiled its LeSEE autonomous electric concept car.
Citroën will unveil an all-electric variant of the Elysée saloon at the Beijing Motor Show. The E-Elysée uses a lithium-ion battery and offers a 155-mile range on a single charge. The French automaker aims to begin production of this model soon. In a statement, the automaker said, "The brand is unveiling an all-electric version of its three-box saloon: Citroën E-Elysée. Scheduled for launch in China in 2017, this model reflects Dongfeng Citroën's ambitions to be a key player in electric vehicles for the Chinese market." The automaker added, "The emphasis on electric vehicles is also an opportunity for the brand to present its latest vehicle to the Chinese public for the first time, Citroën E-MEHARI, an all-electric 4-seater cabriolet with a unique personality." Meanwhile, the new C6 sedan is to be the flagship model from the Dongfeng Peugeot Citroën Automobile (DPCA) joint venture in China. "Targeting the upper business D segment, this 4.96-metre-long premium saloon is set to arrive at the end of the year. Designed by the Styling Centre in Paris alongside the Shanghai team, the Citroën C6 will be built in Wuhan," said DPCA.
Renault has announced that it will unveil the new Koleos SUV. The D-segment car has been designed and engineered to play a role in boosting Renault's international growth. The automaker has already this year begun an offensive in China with the Kadjar SUV. In addition, Kia has announced a hybrid SUV, while SsangYong will show the Tivoli Air SUV ahead of the beginning of sales in China.
Outlook and implications
The hype of the Beijing Motor Show is upon us and, with the non-stop influx of teasers and publicity from automakers, the show highlights the significance of the Chinese vehicle market for automakers and suppliers across the globe.
The new energy vehicle (NEV) trend is also witnessing strong growth in China, although the volume of sales in this segment is still a small fraction of the larger regular combustion engine market. IHS Automotive estimates that NEV sales, involving actual vehicle registrations, will rise by around 70% this year in China.
Our data of registrations of NEVs, which include pure electric vehicles (EVs) and plug-in hybrid EVs (PHEVs), show that around 195,000 units were registered to owners in China in 2015. This comprised around 135,000 units of pure EVs and 60,000 units of PHEVs.
Within the pure EV segment the top players are the Chinese brands and in the PHEV segment Chinese brands also lead the market the data shows.
With the influx of new models coming in to China, international brands are also keen to strengthen the models in both the EV and PHEV segments as well as in the high growth SUV segment. Meanwhile, automakers are also showcasing regular hybrids as the trend to move towards cleaner emission vehicles gains greater importance in China.
The cities of Shanghai and Beijing continue to be the main spearheads of NEVs, with Beijing leading as the main market for pure EVs and Shanghai leading as the main market in China for PHEVs.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.