Published By : 30 Nov 2015 | Published By : QYRESEARCH
Automakers in China are betting that mini-van will be embraced by Chinese families, with the hope that the larger uninviting sibling of the popular SUV will be the next big thing as Beijing relaxes its one-child policy.
At the front of the Guangzhou auto show that ended recently were multi-purpose vehicles (MPVs) or mini-vans, where Volkswagen AG introduced a supersized version of its Touran and a subsidiary of GAC Motor, the Guangzhou Automobile Group showcased the prototype of a mini-van.
Currently, these mini-vans account for only ten percent of passenger car sales in China, but sales are increasing at a faster pace as compared to the entire auto market, which is the largest in the world.
Industry experts opine that the market for bigger cars in robust in China, wherein extended families many times live under one roof, which could turn China to be the largest market for multi-purpose vehicles (MPV) after the U.S., where automakers have been selling big cars to families for the last many years.
At the end of October, with further relaxation of the one-child policy in China, a move which would not lead to abrupt increase of the average family size, as per experts. However, Chinese authorities speculate that it will boost the population to 1.45 billion by 2030, which totaled at 1.37 billion at the end of 2014.
Since the two-child policy has been rolled out, the market share of 7 seater SUVs and MPVs are likely to further strengthen, as stated by the general manager at GAC Motor. The sales of multi-purpose vehicles in the first ten months of 2015 grew by 7.8%, according to the statistics of the China Association of Automobile Manufacturers, which will outperform the 1.5% growth observed in the overall car market in the country.