McKinsey & Company/Baan, Gao, Wang & Zipser: Savvy and sophisticated: Meet China’s evolving car buyers

Savvy and sophisticated: Meet China’s evolving car buyers

By Wouter Baan, Paul Gao, Arthur Wang, and Daniel Zipser


Our 2017 survey of Chinese auto consumers shows they’re demanding more from carmakers. How can companies keep up with shifts in this must-win market?


After China’s automotive market registered its lowest growth since 2011, it rebounded strongly in 2016 (Exhibit 1). Jumping 20 percent from 2015, much of this vigorous expansion resulted from the country’s temporary suspension of sales taxes for cars with small engines. Volatility continued in 2017. A large drop early in the year reflected the strong “pull ahead” sales in December 2016, as many consumers sought to take advantage of a lower sales tax rate before an increase took effect on January 1, 2017. However, sales growth eventually picked up again over the course of the year.
Exhibit 1
China passenger car sales volume, 2010 to 2016, measured in millions of cars and % growth year on year