For the first time ever, sport utility vehicles account for more than 20% of all market share by vehicle type in China.
“[SUV] market size boomed by 46% [year-over-year] to 240,000 units in July, recording the highest monthly market share of 20.8% of the total [passenger vehicle] market,” say Morgan Stanley analysts Sheng Zhong and Frank Xu. “This is driven mainly by low and luxury SUV segment, which both rose over 60% [year-over-year] last month.”
In July, 239,683 of the 1.15 million vehicles sold in China were SUVs, which contributed 7.5% percentage points to the 13.5% overall sales growth rate last month.
The chart below shows how the SUV’s market share has evolved over the past several years. In 2006, it stood at only 5.4%, a quarter of where it is today.