Automakers have used the Beijing Motor Show to introduce concept and new production SUV models as growth in the segment continues to outperform the overall passenger vehicle market in China.
IHS Automotive perspective | |
Significance | Automakers target different sections of the Chinese market by offering both entry and premium SUVs for buyers in China. |
Implications | Premium brands and mainstream brands all target the growing SUV market with models on offer at the Beijing Motor Show highlighting their different target segments. |
Outlook | IHS Automotive forecasts production levels of SUVs to grow in China to over 6 million units per annum in 2020 up from 1.39 million in 2010. |
The growth rates for the sport utility vehicle (SUV) segment continue to outpace the overall growth of the passenger vehicle (PV) market in China attracting a range of automakers to increase their offerings in the segment. The Beijing Motor Show 2014 has witnessed a steady line up of both concept and production SUV models ranging from long D-segment SUVs to smaller B-segment SUVs, as well as the mainstay C-segment SUV models. Automakers are increasing SUV models in premium and mainstream brand lineups in a bid to capture a larger slice of the growing SUV market in China.
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Mercedes Concept Coupe SUV |
Mercedes Benz shows new Concept Coupe SUV
The Mercedes Concept Coupe SUV shown at the Beijing show is a model made with the Chinese consumer in mind. Speaking at the reveal event, Dieter Zetsche said that the 4-door, 4-seater car is fitted with a 9-speed transmission and is built on the Mercedes brand's own DNA. The Concept Coupe SUV is potentially a strong edition for Mercedes and that Chinese consumers like Coupes–resulting in Mercedes developing the model. In a company press release the automaker states: "With this concept car, Mercedes-Benz is announcing the possible expansion of the previously uniform SUV off-roader family." The Coupe SUV illustrates the possibility of a more sporty "on-road line" of SUVs in addition to the GLK, GLA model families which stand for "off-road line", the automaker says in a statement given to IHS Automotive.
Technical details:
The Concept Coupe SUV measures 4935 mm in length, 1739 mm in height and 2208 mm in width (with mirrors). The SUV has a wheelbase of 2916mm. The model will have a 9G-Tronic Plus nine-speed automatic transmission system and a V6 engine with 4 valves per cylinder.
"Sensual as a coupé – visionary as an SUV," says Gorden Wagener, Head of Design at Mercedes-Benz, to describe the physiognomy of the Concept Coupé SUV.
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Lincoln MKX Concept SUV |
Lincoln reveals MKX SUV Concept
Lincoln has revealed an SUV concept designed specifically for its new customer base in China. The Lincoln MKX Concept was unveiled at the Beijing Motor Show and chief designer of the model, David Woodhouse explained to IHS Automotive how the car has been specifically tuned for Chinese buyers. For example, the "Crystal Gold" colour term highlights a colour specially created for the Chinese market, he said. Meanwhile in an interview with IHS Automotive, Jim Farley, global leader for Lincoln stated that the brand will be sold across 50 cities in China by 2016 amongst an independent network of 60 dealers.
The MKX Concept SUV will become the third of four all-new Lincoln vehicles due by 2016, the automaker says in a statement given to IHS Automotive. This reveal in Beijing marks the first time Lincoln has stepped beyond U.S. borders to reveal a concept vehicle.
"Drawing design inspiration from airplanes and motorcycles, the MKX Concept evokes a feeling of power and agility, offering a glimpse of the luxury brand's future as it enters the rapidly growing Chinese market.," the automaker says. The transformation of Lincoln is underway and launching our brand in China is an extremely important and exciting next step," said Jim Farley, executive vice president, global Ford marketing, sales and service and Lincoln. "The transformation of Lincoln is underway and launching our brand in China is an extremely important and exciting next step," said Farley.
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Ford Everest SUV |
Ford highlights Everest off-road SUV concept
In an interview with IHS Automotive, Ford's global CEO, Alan Mullaly stated that the Everest SUV is essentially a light truck. "They're trucks–body on frame," he said.
The mainstream Ford brand is expected to increase its product offering with the large SUV that could be produced with commercial vehicle partner Jiangling Motors Corp (JMC), chairman and CEO of Ford China, John Lawler said in an interview with IHS Automotive. "The Ford Everest Concept, created by our team in Australia previews a bold new direction for the midsize off-road SUV segment which would allow us to serve a wider range of customers here in China," Lawler is quoted saying in a statement given to IHS Automotive by the automaker.
Volkswagen premiers new Touareg SUV, shows T-ROC SUV Concept
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Volkswagen Touareg |
Volkswagen (VW) has also revealed ambitious plans to enhance its SUV lineup in China. The advanced version of the popular Touareg SUV combines both on-road and off-road features with the 2014 global version fitted with a V6 TDI engine and an 8-speed automatic gearbox. The engines meet Euro 6 standards that will take effect in Europe from 2015. In Asia, the new Touareg is being offered with three petrol and two diesel engines. The petrol engines for China produce 213 kW / 290 PS and 235 kW / 320 PS (both V6 TSI) and 265 kW / 360 PS (V8 TSI).
To create a better off-road experience, an air suspension system is offered to increase the vehicles ground clearance by up to 300 mm. The latest version of the Touareg will launch on the market in diesel (TDI), petrol (FSI and TSI) and hybrid (TSI plus e-motor) models this summer, the automaker says in a statement given to IHS Automotive.
VW has also used the Beijing Motor Show to show the T-ROC Concept SUV, which the automaker says illustrates a new approach to compact SUVs by VW. The T-ROC two-door SUV concept is another example of how coupe designs are being used to develop new SUV concepts.
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Volkswagen T-roc |
The T-ROC design is based on the modular transverse matrix (MQB) platform. It is 4,179 mm long, 1,831 mm wide and 1,501 mm tall; its wheelbase is 2,595 mm. The SUV weighs just 1,420 kg. The T-ROC can be driven in three different driving modes: "Street", "Off-road" and "Snow". The T-ROC is powered by a 135 kW / 184 PS turbodiesel engine with 380 Nm of torque. The gearbox used here is a 7-speed DSG. The fuel consumption of the 2.0 TDI is 4.9 l/100 km.
Jeep shows Renegade for China
Jeep showed the Renegade SUV model aimed at the Chinese consumer at the Beijing Show. The model has been specially styled with the Chinese consumer in mind, chief designer Robert Walker told IHS Automotive. Jeep CEO Mike Manley said the company plans to add about 50 dealerships this year to a network of about 250.
"It's clearly going to be the biggest market for SUVs in the world. And the good news is, that's all we do," Manley said.
Great Wall debuts Haval H9 SUV
Great Wall used the motor show to introduce a range of SUVs including the Haval 9 which is cross country SUV model fitted with either a 2.0L turbocharged direct injection engine and a 6 speed automatic transmission or a 3.0 litre direct injection turbocharged engine with a 8 speed AT.
The automaker also showed a smaller Haval H2 SUV in addition to the Haval 8.
Earlier this year General Motors showed the new Chevrolet Trax SUV while Nissan showed the X-trail and also the new Juke based SUV (see China: 18 April 2014: Infiniti to launch Chinese-exclusive crossover based on Juke). Almost every automaker has introduced an SUV to further gain market share in China (see China: 15 April 2014: Automakers expand lineups as competition for market share in China intensifies).
Outlook and implications
The trend is obvious. Create SUV models for the Chinese consumer. The SUV segment can be further divided and IHS Automotive data shows a significant growth in different sub segments.
IHS Automotive divides the SUV segments by price to indicate the relative positioning of the SUV model to the regional automotive market. For example, with reference to China, the growth in the total SUV market can be further divided by the different SUV segments. In 2010, a total of 1.39 million SUVs were produced in China, and this has risen to over 3.15 million in 2013. By 2020, we forecast the total number of SUVs to be produced in China will rise to 6 million units.
Under the segmentation based on price we see that there is growth across the Entry level, the Mid level and the Premium level SUVs in terms of increase in local production in China. The fastest growing segment is the Premium SUV segment which has seen production rates of 57.53% year-on-year (y/y) in 2013, followed by the Mid SUV segment which saw a growth rate of 54.6% y/y in 2013 while the Entry level SUV segment saw growth of 49.6% y/y in 2013.
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IHS Automotive SUV production forecast (China) |
Under the segmentation of size, the regional sales segmentation, the SUVs can be divided into four categories–the B-SUV, the C-SUV segment, the D-SUV segment and the E-SUV segment. Here the C-SUV segment is the largest by volume with 1.78 million units produced in 2013 in China, up from 1.2 million in 2012. The second largest is the D-SUV segment with 1.01 million produced in 2013, up from 715,080 units in 2012 in China. The B-SUV segment is next with a total of 355,926 units produced in 2013 up from just 131,094 units in 2012. The E-SUV segment's production volume in dropped 2013 with just 6,880 units produced down from 7,713 in 2012. However, the E-SUV segment will see a jump in 2014 with production forecast to rise to 19,900 units this year.
By combining the price and size segmentation systems, growth in the SUV segment in the entry level SUV segment is mainly dominated by the D- SUV segment with production levels of 554,564 units in 2013. For the mid level-SUV segment the largest volume was from the C-SUV segment with a total 1.24 million units produced in 2013. The premium SUV segment had the most volume from the D-SUV segment in 2013 with 141,378 units produced.
In 2010, there were just six players in the B-subcompact SUV segment with local production in China. In the same year the C-SUV segment had just under 20 players, while the D-SUV segment had 24 players and E-SUV segment had 6 players. In 2015, we forecast 19 players in the B-SUV segment, in the C-SUV segment there are currently forecast to be 60 players in 2015 while there are expected to be around 47 players in the D-SUV segment.
The sheer growth of the SUV segment has attracted a growing number of automakers to increase models on offer in China, with local production of the SUV segment soaring over the next few years in China.