Index > Authors> NewsTurbo> New-energy SUVs on the rise in China

New-energy SUVs on the rise in China

Source: | Date: Oct. 13

  • Recent data shows that China's auto market was flat in Sept., with sales of commercial vehicles, sedans, crossovers, and MPVs suffering from negative growth. The only bright spot is the SUV market, which saw robust growth. This means that the country's market conditions showed no significant improvements in Sept. compared with Aug.

  • SUVs are popular in China because they meet a growing appetite among Chinese consumers for vigorous off-road performance and satisfactory riding comfort. What's more, SUVs' relatively small market share also provides room for sales to grow rapidly.

  • However, SUVs consume excessively high levels of fuel, a problem that has hindered their further growth, especially as the Chinese government is tightening its grip on fuel consumption.

  • As a result, in order to maintain robust sales growth and meet government requirements for fuel economy, automakers need to do one thing - developing SUVs supported by new energy sources. In fact, a number of automakers, including Tesla and BYD, have already begun doing it. As the market of cars powered by traditional gasoline engines reach its maximum capacity, it has become increasingly important for automakers to capitalize on the booming SUV segment. In this regard, new-energy based SUVs are expected to help the auto market move forward.