China's passenger car market is entering a new stage of development.
While the market may grow at a slower pace in the coming decade, the driving force behind its long-term growth is not going to be weakened, especially factoring in the favorable conditions for the new energy auto segment, according to a report by Fitch analysts.
Competition in the world's largest passenger car market will go ever fiercer for both joint venture and indigenous brands, making it more important to make the right decision on products, price, and sales strategy.
Meanwhile, constant progress in China's urbanization, growing household income, and better transport infrastructure will continue to support future growth of the car market in China, said the report.
The Fitch report predicted that China's passenger car penetration will grow from lower than 80 vehicles per 1,000 people at present to 150 to 200 vehicles per 1,000 people in the next two decades.
While consumers in the first and second tier cities are moving on to more expensive and higher-end cars, in faster-growing medium and small-sized cities, entry-level cars will continue to dominate the local markets.
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