電通中國-通往中國電動(dòng)車市場的成功之路（英）-

June2022

THEROADTOSUCCESS

INCHINA’SELECTRICVEHICLEMARKET

TheroadtosuccessinChina’sEVmarket

Theautomotivefutureiselectric–butnotjust.Whatappearsatthesurfacetobeamereswitchfromtraditional

fuel-basedpowertraintoelectrictechnology–NewEnergyVehicles–isinrealitythebeginofasubstantialchangeoftherolethatthecarplaysinpeople’slives.Inessence,thecarchangesfroma‘meansoftransportation’toan‘enablerofindividualmobility’.

NowherecanthistransformationbeobservedmoreimpressivelythaninChina.Withinashortperiodoftime,mainlandconsumershaveconverted

fromrathertraditionalstatus-orientedbuyerstotrailblazersofdigitaladoption.Theyarebeingcourtedbyaplethoraofplayersinthemarket,fromlegacycarmakerstonewstartupstotechcompaniesenteringthe?eld.

China’smarketforelectri?edpassengervehicles,notablyBatteryElectricVehicles(BEV),haspassedthetippingpointwheregovernment’spushthroughstimulusmeasureshasresultedinaconsumerdemandpullthatisexpectedtodrivesteepgrowthinthefuture.Astheworld'slargestBEVmarketmovesintothemainstream,sustainablesuccesshasbecomenothinglessthananexistentialquestionforallmarketparticipants.Thiswhitepaper,the?rstinaseriesofquarterlywhitepapersinthecourseof2022,

considerstheopportunitiesandchallengesinthisalreadyhighlycompetitiveBEVmarketandshowsactionablestepsforstakeholderstosuccessfullyaligntheirmarketingstrategiestotheneedsofprospectivecustomers.

2

TheroadtosuccessinChina’sEVmarket

Content

China’sNewEnergyVehicle(NEV)market4

-

-

-

Fromgovernmentpushtodemandpull

China’sNEVmarketcharacteristics

Batteryelectricisthefuture

FocusonBEVcustomers7

-Spendingpattern

-Appusage

FutureopportunitiesintheBEVmarket11

-

-

-

-

Geographicalobservations

Spendingcategoryinsights

Appbehaviouraspects

Thenotionofpremium

Conclusions17

References20

AboutdentsuChina

AboutMaLogic

3

TheroadtosuccessinChina’sEVmarket

China’sNewEnergyVehicle(NEV)market

Fromgovernmentpushtodemand

The?rstnotableeffortstocreateastrongNEVmarketinChinadatesbackto2010whentheCentralGovernmentlaunchedapilotprogramin?vecitiestopromotethesalesofplug-inhybridvehicles(PHEVs)andbatteryelectricvehicles(BEVs).1Inthecourseofthefollowingdecade,thestructuralbasisofthemarketwascreatedbycomprehensivesupportactivitiesconsistingofinvestmentprograms,regulations,subsidies,purchaseincentivesandotherstimulusmeasures.Theseculminatedintheinclusionofnewenergyvehiclesandintelligent(connected)vehiclesasfocussectorstoincreaseglobalcompetitivenessinthe14th

Five-Yearplan(2021-2025).2

In2018,NEVsalessurpassed1millionunits,accountingforhalfofallglobalNEVsales.3ThishasenabledChinatoclaimtheundisputedtopspotintheworld.Thisperiod,withBYDtoppingthelistwithnearly250,000NEVssold,alsoheraldsthecriticaltransitionfrom?eetbuyersoperatingthesevehiclesprimarilyfortheirride-hailingservicestoindividualcarbuyers,andissigni?cantlymarkedbythearrivalofTesla'slocalShanghaimanufacturingbaseandthesubsequentriseoflocalstartupslikeNio,XpengandLiAuto.

pull

4

Fastforwardto2021,China'sNEVmarketasreachedanothermilestoneby

exceedingthe3-million-unitmark.Themarketisnowbelievedtohavepassedanin?ectionpointtosustaingrowthwithoutsubstantialpublicstimulusmeasures.Whilepurchaseincentiveshavebeensigni?cantlyreducedandaresettobephasedoutbytheendof2022,theNEVmarketisexpectedtogrowstronglythisyearandwillcontinuetogrowinthecomingyears5Although

recentpricehikesduetorising

commoditypricescouldaffectsome

price-sensitivebuyersoflow-cos

electricvehicles,thereisaconsensus

among?nancialanalyststhata

structuralimpactonfuturedemandis

6

unlikely.

China’sNEVmarketdevelopment

ChinaAnnualNEVsalesin‘000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

1,2601,1801,3700%

20182019202020212022…2025

40%40%

30%

24%

10,000

15.5%

20%

5,500

6.8%

5.3%5.5%

10%

3,334

NEVshare

23.7m21.4m20.2m21.5m.23mest.DeutscheBankestimation

AnnualPVsalesin

China

4

5

TheroadtosuccessinChina’sEVmarket

China’sNEVmarketcharacteristics

ThenumberofNEVssoldin2021roughlycorrespondstothetotalsalesofnewpassengervehiclesin2005.Then,onlyahandfulofcarmakers,mostlyforeignJointVenture(JV)companies,dominatedthemarket.China’sNEVmarkettoday,albeitinrelativelyearlydevelopmentstage,isalreadyhighlycompetitiveandshowsanotabledegreeofsophistication.

Infact,China’sNEVsectorcanbebrokendowninto3quitedifferentgroups.AroundaquarterofallnewNEVmodelsareplug-inhybridsorbatteryelectricversionsofcombustionenginecars.Thesemodelsrepresentearlygenerationsofelectri?edofferingsthatappealtomorerationalvehiclebuyerswhocanbene?tfrompurchaseincentivesandgreenlicenseplates.

AwhoppingthirdoftheNEVmarketconsistsofMiniBEVs.Theseinexpensiveandno-frillscarsofferalow-costentrypointintovehicleownership,areidealforcommutingandappealprimarilytothefemaletargetconsumers.Thistypeofvehicleshasbene?ttedfromhealthconcernsduringthepandemicastheyprovideanaffordable,yetsafeandcomfortablealternativetothenotoriouslycrowdedpublictransportsystem.CompetitioninthisMiniBEVsegmentissettoremainexclusivelyChinese,asforeignautomakers–apartfromGM,Wuling'sJVpartner–willnotbetookeenonthislow-marginbusiness.

TheroadtosuccessinChina’sEVmarket

JVbrandsaremorelikelytotargetthethirdNEVsub-segment,consistingofsmartICVsaswellasotherBEVbrandsandnewlydevelopedelectricvehicles.Muchofthedynamicisdrivenbyanewbreedofstartupbrandswhichoffertheirusersamorebroadlyde?nedapproachtomobilitywithawholerangeofconnectivityandotherdigitalservices.Technologicalinnovationisoneofthepredominantpurchasedriversforcustomersinthissegmentofthemarket.Withafewexceptions,notablyGermanOEMs,internationalJVbrandsarestilllargelyabsentfromthissmartBEVsegment.

Batteryelectricisthefuture

ConsideringthatChinaisthe

world'slargestautomarket,its

government'sdeterminationto

furtherstrengthentheroleofNEVs,

thedynamicmarketenvironment,as

wellasastillhugepent-updemand

forvehicleownership,athorough

Chinastrategyisforeveryauto

makerindispensable.While

plug-inhybridelectricvehicles

(PHEVs)aresoughtafterbysome

carbuyers,thereareindications

thatthelonger-termfocusshould

beonbatteryelectricvehicles

(BEVs):

Eightoutof10newenergyvehiclessoldin2021wereBEVs7

Shanghaiasoneofthecitieswithpassengervehicleregistrationrestric-tionshasselectedBEVsforpreferentialtreatmentbybanningPHEVsforissuinggreenlicenseplatesstartingin2023thismaybeablueprintforotherregions

China’scharginginfrastructureiswelldeveloped;bytheendof2021,thecountryhadcloseto75thousandchargingstationsproviding~2.6million

9

chargingpiles;inaddition,carmakersincreasinglyinvestintheirown

charginginfrastructure(e.g.Nio)10

Chinaisleadinginbatterytechnology,andhaswithCATLandBYDtwostrongplayersinthe?eldwithhighR&Dpotential11

6

TheroadtosuccessinChina’sEVmarket

FocusonBEVcustomers

CurrentbuyersofnewBEVsbelongtothegroupofearlyadopterswhoshapepurchasetrendsandhelpustoanticipatefuturebuyingbehaviourpatterns.IfweacceptthenotionthatNewMobilityismorethanthemeretransitionfromvehicleswithinternalcombustionengines(ICE)tobatteryelectriccars,theideaofwhatmotivatesconsumerstochooseaBEVtakesonanewandmuchwiderdimension.UnderstandingtheconsumptionchoicesofBEVbuyersatabroaderlevelcantellusalotabouttheirbehaviouringeneral,abouttheirpreferencesandtheirpriorities.This,inturn,willinformmarketersaboutappropriateareastoconnectandrelevanttopicstoengagewiththem.

The2021consumptionanalysisof

ChineseBEVbrandbuyers,basedon

spendingdatafromUnionPayandApp

usageinformationfromTalkingData,

givesusagoodinsightintothe

consumptionbehaviourofthis

particulartargetaudience.

12

Unliketheconventionalpassenger

vehicle(PV)market,whichis

characterizedbyastrongpositionof

internationalJVbrands,China’sBEV

marketislargelydominatedbyChinese

playerswhichcontrolatleast75

percentofthissegment.

7

TheroadtosuccessinChina’sEVmarket

Spendingpattern

Walletdistribution

Dailylivingexpenses,abroadcategorythatincludesallkindsofdailynecessities,suchassupermarkets,grocerystores,

departmentstores,etc.

Automotiverelatedexpenses,e.g.carpurchase,carservicing,autoparts,etc.

Financerelatedexpenses,includinginsurance,investments,etc.

Thepatternoftheremainingwalletallocationcharacterizesthemasactiveconsumerswhopursuearather‘pleasure-oriented’consumptionbehaviour.Theirpurchasesrangefrombuyingallkindsofgoods(e.g.

Home-decoration,Fashion,Jewelry,Electronics),goingtorestaurantsandcoffeeshops(includedinCatering),enjoyingcinemaandkaraoke(includedinEntertainment),andengaginginsportsactivities(includedinHealth),totraveling.

Datasource:UnionPayspendingdataChina2021

Theanalysisshowsanotable

correlationbetweenthedifferent

categories,underscoringthefactthat

buyersofChineseBEVbrandsare

activelycateringtoawiderangeof

differentconsumerneeds.Acrossall

spendingcategories,buyersofChinese

BEVbrandsspendanaverageof4,125

RMBoneachpurchase.

8

4,019

3,7163,748

36%

15%14%

35%

0%

4,125

TheroadtosuccessinChina’sEVmarket

Regionaldistribution

Mostoftheconsumptionisconcentratedinthenorthernandeasternregions,whilethecentralandsouthernregionslagbehindsigni?cantly.Thedistributionofspendingiscomparableacrossregions,yetper-unitspendingishighestintheEast,whilebuyersofChineseBEVbrandsinCentralandSouthChinaspendless

onaverage.

North:

Beijing,Hebei,InnerMongolia,Shanxi,Tianjin

Heilongjiang,Jilin,Liaoning

Gansu,Ningxia,Qinghai,Shaanxi,Xinjiang

East:

Anhui,Fujian,Jiangsu,Jiangxi,Shandong,Shanghai,Zhejiang

Central

:

Henan,Hubei,Hunan

South:

Guangdong,Guangxi,Hainan

Chongqing,Guizhou,Sichuan,Tibet,Yunnan

Datasource:UnionPayspendingdataChina

2021

6,000

5,000

4,000

3,000

2,000

1,000

0

SpendingdistributionofChineseBEVbuyers

–byregions

4,646

4,125

TotalNorthEastCenterSouth

Averagespendingamount(RMB)

Shareoftotalspending

City-tierdistribution

ThetopfourmetropolitanareasofBeijing,Shanghai,GuangzhouandShenzhenaccountforaquarterofallspending,asdothegroupofnewemergingcities(referredtoasTier2+)andallTier2cities.

Tier1ChineseBEVbrandcustomersfaroutspendtheirpeersfromothercitiesintermsofaveragepurchaseamount,whileChineseBEVbuyersinlower-tiercitieshavemuchlowerpurchasingpower.

Tier2+:

Dalian,Shenyang,Tianjin,XianNanjing,Ningbo,Qingdao,Xiamen,Suzhou,Wuxi,Wuhan,ChangshaChengdu,Chongqing

Datasource:UnionPayspendingdataChina

2021

6,000

5,000

4,000

3,000

2,000

1,000

0

SpendingdistributionofChineseBEVbuyers–bytiers

5,522

25%

4,468

26%

4,156

3,420

23%

13%

3,403

9%

3,278

3%

TotalTier1Tier2+Tier2Tier3Tier4Tier5

Averagespendingamount(RMB)

Shareoftotalspending

0%

9

TheroadtosuccessinChina’sEVmarket

Appusage

Chineseconsumersuseawidevarietyofdifferentapplications(apps)ontheirmobiledevices.Unsurprisingly,theappsmostcommonlyusedbybuyersofChineseBEVbrandsaresocialcommunicationtoolsWeChat(~98percent)andQQ(~76percent)andmobiletoolAlipay(~84percent).OnlineshoppingplatformssuchasTaobao,Pinduoduo,MeituanandJDarealsoverypopularwithwellover50percentpenetration.

Manyofthepopularappscaterto

speci?cinterests,thereforeitis

importanttoevaluatehowwellthey

arebeingreceivedbytheirtarget

audience.Thiscanbedoneby

analysingtheirtargetaudienceindex

(TGI)14Inshort,theTGIindicatesthe

penetrationofanappamongitstarget

users,withahigherscoreindicatinga

betteracceptanceoftheapp.

CategoriesofTop15AppswithhighestTGI–Chinese

BEVbuyers

Financialmanagement,11

(266–1054)

Mobiletool,2

(269-279)

Car

services,1

(361)

Travel

services,1

(303)

11…numberofapps

(361)…TGIvalue

Datasource:TaklingDataappusageChina2021,100mostpopular

apps

Alookatthe100mostpopularapps

usedbybuyersofChineseBEVbrands

showsthatamongthetop15interms

ofTGI,11areappsrelatedto?nancial

services.Topofthelistiscarservices

app平安好車主(pinganhaochezhu),a

one-stopserviceplatformthat

providescomprehensiveservicing

aroundthecar,frominsuranceand

roadrescuetoparkingpaymentand

emergencypowerconnection.

10

TheroadtosuccessinChina’sEVmarket

FutureopportunitiesintheBEVmarket

InordertoassessfutureopportunitiesontheBEVmarket,itisusefultocomparethepurchasebehaviorofcurrentBEVbuyerswiththatofcarcustomersasawhole(generalPVbuyers).Thisenablesustounderstandcommonalitiesandpointsofdifferentiationforfurtherre?nementoftheBEVstrategyinrelevantaspects.

15

ConsumptionpatternsofbuyersofChineseBEVbrandsarecomparedtothe

purchasebehaviourofbuyersofChina’stop15passengervehiclebrands.

Geographicalobservations

GeneralPVbuyersvs.ChineseBEVbuyers–byregionShareofwallet

43%

36%

35%

28%

20%

15%

0%

Intermsofregionalwalletshare,

spendingofChineseBEVbuyersin

theEastandtheSouthis

underrepresented.Thisindicatesa

certaindevelopmentpotentialfor

BEVpenetrationintheselocations.

Thisappearstobeparticularlytruein

theeconomicallyadvancedeastern

ChineseBEVbrands

Top15PVbrandseasternregion,whichlagsbehindby

Datasource:UnionPayspendingdataChina2021

8percentagepoints.

Inotherwords,thegapiswidestinthosemetropolitanareasthathavepassengercarregistrationrestrictionsinplace,thatfavourthepurchaseofnewenergyvehicles,astheyreceivepreferentialtreatmentinlicenseplateassignments.

GeneralPVbuyersvs.ChineseBEVbuyers–bytiers

Shareofwallet

33%

26%

25%

26%

26%

23%

4%9%

11%

13%

1%

3%

0%

Tier4

Tier2

Tier1

Tier5

Tier3

Tier2+

Top15PVbrands

ChineseBEVbrands

Datasource:UnionPayspendingdataChina2021

11

4,646

4,125

4,019

3,748

3,716

4,468

3,4203,403

4,156

3,278

4,614

4,6124,589

4,449

5,522

4,224

4,125

Carrelated

Financerelated

Dailyliving

TheroadtosuccessinChina’sEVmarket

Alookattheaverageper-unitpurchaseamountsshowsconsistentlyhigherspendingacrossallregionsandcitytiersbygeneralPVbuyerscomparedtobuyersofChineseBEVbrands.ThemostnotablegapisfoundintheeasternregionandinTier1cities.

GeneralPVbuyersvs.ChineseBEVbuyers–Averagespending

Byregion

Bytiers

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

6,970

5,318

4,7494,779

4,095

TotalNorthEastCenterSouth

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

7,869

5,318

TotalTier1Tier2+Tier2Tier3Tier4Tier5

Top15PVbrands(inRMB)

ChineseBEVbrands(inRMB)

Datasource:UnionPayspendingdataChina2021

ThisisanindicationthatgeneralPVbuyershavegreaterpurchasingpowerthanbuyersofChineseBEVs,withthelattermostlikelybeingmorepriceconsciousthantheformer.InrelationtotheBEVmarket,thismeansthatthecurrentChineseproductrangetendstoservethelowerandlowermiddlemarketsegment.Inotherwords,themiddleanduppermiddlesectionoftheBEVmarket,wherewecanexpectfuturemainstreammarketgrowth,appearsstilltobelargelyuntapped.

GeneralPVbuyersvs.ChineseBEVbuyersWalletshare–Top3

16%

14%

11%

20%

Top15PVbrands

ChineseBEVbrands

Datasource:UnionPayspendingdataChina2021

29%

29%

Spendingcategoryinsights

ThelargestspendingcategoriesforgeneralPVbuyersareidenticalwiththoseofChineseBEVbuyers.Nevertheless,ashiftintheweightingofexpendituresisnoticeable.Caraswellas?nancerelatedcostsofgeneralPVbuyerstakeupamuchlargerwalletsharethanthatofChineseBEVbuyers,whilethedailylivingexpensesarecomparativelylower.

12

TheroadtosuccessinChina’sEVmarket

Thisisinpartduetosigni?cantlyhighervehiclepurchasecostsforgeneralPVbuyers,whoserelatedspendingisonaverage50percenthigherthanthatofChineseBEVbuyers.

Intermsofbroaderconsumerbehaviour,generalPVbuyersseemtoplacemorevalueonlargerticketpurchases(e.g.realestate,jewelry,etc.).Inviewoftheoverallhigherpurchasepowerofthisconsumergroup,thisiseasilycomprehensible.

GeneralPVbuyersvs.ChineseBEVbuyersWalletallocation–Gapanalysis

CarrelatedFinancerelatedDailyliving

RealEstateCateringindustry

Home

HealthJewelryTravel

1

1

-2

2

0

Lookingattheimportanceofthedifferentspendingcategoriesinconsumers’wallets(re?ectedbytheirrespectiveranksinthewalletallocation)itappearsthatgeneralPVbuyersareexhibitingmanyofthesamebehavioursasChineseBEVbuyers,notablyintheserviceindustry:

-2

0

2

Visitcoffeeshopsand

0

restaurants

Fashion-2

Entertainment0

Electronicequipment0

Engageinsportsactivities

MoreimportantLessimportant

Travel

Enjoycinemaandkaraoke

Datasource:UnionPayspendingdataChina2021

TheabovesuggeststhatthewalletallocationofChineseBEVbuyersmaydifferfromthatofgeneralPVbuyersduetobudgetconstraints,buttheunderlyingconsumptionstructurebetweenthetwoconsumergroupsremainsfairlysimilar.Theindicatedserviceindustrycategoriesappeartoberelevantareastoengagewithcustomers.

13

TheroadtosuccessinChina’sEVmarket

Appbehaviouraspects

ThegeneralappusagebehaviorofChineseBEVbuyersisalsocomparabletothatofgeneralPVbuyers.Utilisationofbroaderappcategoriesisprettymuchthesame,withoverallspeakingcommunicationtools(e.gWeChat,etc.),mobiletools(e.g.Alipay,etc.)andmobilevideo/musicaudio(e.g.Youku,QQmusic,etc.)takingthetopspotsintermsofreachandTGI.

Differencesareinthedetails.Alookatthetop15appsusedshowsthattheappvarietyiswideramonggeneralPVbuyers,whilebuyersofChineseBEVbrandstendtofocusononecategory,namely?nancialmanagement.Thispointstothecentralroleof?nancialresourcesincoveringtheirconsumptionneeds.

CategoriesofTop15AppswithhighestTGI

1

3

2

1

1

1

Travelservces

MusicAudio

Mobilevideo

Mobiletool

5

11

Financemanagement

1

DomesticservicesCateringservicesCarservices

1

2

1

Top15PVbuyersChineseBEVbuyers

Datasource:TaklingDataappusageChina2021,100mostpopularapps

TheaverageTGIscoreamongthetop15appsforgeneralPVbuyersismuchlower

thanthatforChineseBEVbuyers(236vs.429).Thisunderscorestheimportanceofprecisetargetingtogetthebestresults.

14

TheroadtosuccessinChina’sEVmarket

Thenotionofpremium

AparticularlypromisingsegmentwithintheBEVmarketaresmartICVs(IntelligentConnectedVehicles),inwhichthenewstartupcompaniesareactive.Someofthemde?nethemselvesaspremiumbrands.GiventheoverallpositioningofChineseBEVbrandsinthelowermid-tieroftheautomotivemarket,thequestionarisesastohowbuyersofICVbrandscomparetobuyersoflegacypremiumcarbrands.

Toanswerthis,thepurchasebehaviourofbuyersofthe6ChinesestartupbrandsNio,Xpeng,LiAuto,Neta,LeapmotorandWeltmeister(collectivelyreferredtoasICV6)iscomparedtothebuyersofthemostprominentpremiumcarbrandsinChina,BMW,Mercedes-BenzandAudi(collectivelyreferredtoasBBA).

Passengervehiclebuyers–AveragespendingWalletallocation–Gapanalysis

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

6,851

5,318

4,928

4,125

4,999

Top15PVbrands

Nonpremiumbrands

PremiumBBA

brands

ChineseBEVbrands

ICV6brands

(inRMB)

Datasource:UnionPayspendingdataChina2021

CarrelatedFinancerelatedDailyliving

RealEstateCateringindustry

Home

Health Jewelry Travel FashionEntertainment

Electronicequipment

Premiumvs.ICV6

buyers

1

-1

0

0

1

-1

0

1

1

-2

0

0

Moreimportant

Lessimportant

Nonpremiumvs.ICV6

buyers

0

0

0

0

1

-1

0

1

0

-1

0

0

SpendingpatternofICV6buyersindicatesthattheirpurchasebehaviourismorecomparabletonon-premiumcarbrandbuyersthantothatoflegacypremiumbrandbuyers.Theirper-unitaveragespendingamountismoreorlessonparwithnon-premiumcarbuyers.Incidentally,theaverageamountforvehiclepurchaseisalsoalmostthesameasthatofnon-premiumcars,whileitisonlyhalfthatofpremiumcars.

Categoryspendingcon?rmsasimilardemandstructurebetweenbuyersofICV6brandsandnon-premiumbrandbuyers,whichoverlapinmostrelevantcategoriesintermsofimportanceintheirrespectivewallets.

15

TheroadtosuccessinChina’sEVmarket

ThisraisestheinterestingpointaboutthenotionofpremiuminChina’sBEVmarket.Astheanalysisofpurchasebehavioursuggests,theunderstandingofpremiumnolongerprimarilyreferstoahighercarpricelevelandelevatedproductqualityalone.Rather,digitalfeatures,connectivityservicesandarichervehicleexperienceoverallbeyondjustdrivingseemstohavecontributedtoanewde?nitionofpremium.

Thisrede?nitionharboursopportunitiesandrisksforbothlegacypremiumbrandsandnewstartups.Legacypremiumcarmakersfacethechallengeofincorporatingeverchangingcustomerneedsandexpectationsintotheirstrongbrandproposition.Startupsneedtotranslatetheirdisruptiveproductandserviceoffersintoacompellingbrandpromise.Consumerchoicesandconsumptionbehaviouringeneralwillgivecriticalunderstandingoftheirtargetmarkettoboth.

16

TheroadtosuccessinChina’sEVmarket

Conclusions

AnalyzingtheconsumptionbehaviourofChinesecarbuyersofferssomerelevanttakeaways:

Despiteamultitudeofmarketplayerssteppinguptheiractivities,competitionforChina'smainstreamBEVmarketisjustbeginning

Spending?guresshowthatbuyersofChineseBEVbrandshavelesspurchasingpowerthangeneralPVbuyers.ThisleadsustobelievethatthecurrentrangeofdomesticBEVbrandsisgearedtowardstheneedsofaclientelewitharathermoderateincome.Whileafewofferingsexistatthetopendofthemarket,thelargemid-rangeoftheBEVsector,whereweexpectsigni?cantgrowthinthefuture,isunderserved.

TheanticipatedriseofthelucrativemiddlesegmentoftheBEVmarketoffersawealthofopportunitiesforinternationalJVbrandsthatarelateinenteringtheBEVgame.ButitalsoopensupfurtherpossibilitiesforChineseautomakerstouptheirgameandtakethecompetitiontothenextlevel.Theyhavemadeemarkablestridesinproductdesign,qualityandbrandinginthepastandcanbene?tfromtheirrecentNEVexperience.

Alookatthedistributionofspending

attheregionalandcitylevelsshows

thatspendingbyChineseBEVbuyers

isunderrepresentedintheeasternand

southernregionsandTier1cities.

Theseregionsareamongthosewith

thehighestpurchasingpower,though.

Thissuggeststhatcompetitionwillbe

mostintensethereandwillrequire

specialattention.

Spendingbehaviouridenti?es

theserviceindustrycategories

asrelevantareasforinteracting

withBEVprospects

Consumerscatertoawiderangeof

differentneedsastheyspendin

variouscategories.Inadditionto

buyinggoods,Chineseconsumers

indulgeinpleasantexperiencessuch

asvisitingrestaurantsandcoffee

shops,goingtothecinemaand

karaoke,engaginginsportsactivities

ortraveling.

Thepurchaseanalysisrevealsthat

severalserviceindustrycategories

accountforahigherproportionofthe

walletsofChineseBEVbrandbuyers

thanthoseofgeneralPVbuyers.At

thesametime,car-relatedexpenses,

whileimportantoverall,accountfora

muchsmallerproportion.

17

TheroadtosuccessinChina’sEVmarket

Indeed,judgingbytheirpurchasingbehavior,currentbuyersofChineseBEVscanbedescribedaslesscar-enthusiasticandmore

shopping-orientedthangeneralbuyersofPVs.Thiscouldcon?rmthegeneraltrendthatthecarperseasaproviderof"physicalmobility"willbelessasourceofrevenueinthefuture,whilenewofferso