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Middle and high-end MPVs emerging as choice for families

By Zhang Dandan | China Daily | Updated: 2020-04-20 10:22
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Buick's new SUV GL8 of GM is displayed during the media day for the Shanghai auto show last year. [Photo/Agencies]

Lower value cars in segment see drop-off

The increasing demand for family cars, especially in the wake of the novel coronavirus outbreak, is expected to stimulate the market demand development for multipurpose vehicles, according to insiders.

The MPV, which combines the large space of a station wagon, the comfort of a sedan and the functionality of a van, specializes in meeting families' travel needs.

"The months spent with my family during the coronavirus epidemic reinforced that having a companion is very important to elderly parents and little kids, and we should spend more time with them," said a netizen, reported by ce.cn.

"When the epidemic ends, I want to buy a larger car to take vacations with my family."

However, compared with sport utility vehicles and sedans, the MPV has shown a trend of increasing marginalization over the years.

In 2019, 1.38 million units of MPV were sold, representing a 20.2 percent decrease from the previous year. Analysts said that the decline in the MPV market in recent years hit the low-end models hardest, while middle and high-end MPVs generally maintained stable market performance. Such vehicles included the Buick GL8, Honda Odyssey and Honda Elysion.

The sales volume of high-end MPVs reached 272,562 units in 2019, with a market share of 19.87 percent, up 2.63 percentage points from 2018.

A total of 147,644 units of Buick GL8 were sold last year, up 5.99 percent year-on-year.

In December 2019, the model had a sales volume of 14,743 units, soaring by 46.9 percent from the same period of the previous year.

On Apr 12, SAIC-GM launched the latest-generation Buick GL8 Avenir, as part of the joint venture's efforts to consolidate its presence in the high-end MPV segment.

"China has entered a new era of consumption. Chinese consumer market is being reshaped, especially by the middle and affluent classes with strong purchasing power.

"It has been proven by the development of China's luxury car market in recent years," said Gu Yebin, head of Buick marketing with SAIC-GM.

Gu's words were echoed by Cui Dongshu, secretary-general of the China Passenger Car Association, who said that high-end MPVs have a prospective market.

"In the long run, the MPV has market potential," said Yale Zhang, managing director of Shanghai-based consultancy Automotive Foresight.

More market players are expected to join the MPV segment to intensify the competition and lower the selling price, Zhang said. That way, more individuals and families will consider buying a MPV.

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