China’s Connected Spenders & Car Demand
This report was developed and published by the Demand Institute, a non-profit think tank jointly operated by The Conference Board and Nielsen.
China is the world’s largest automotive market with more than 21 million sales in 2015. At the same time, many cities are experiencing high levels of pollution, and the central government’s most recent 5-year plan emphasizes the importance of green energy, including new energy vehicles. Sales of new energy vehicles are growing quickly but still represent a small portion of the market. In this report, we show there is a strong interest in new energy vehicles among Chinese consumers, particularly among the Connected Spenders. These consumers will account for the majority of consumption in China over the next decade, and their unique preferences will drive demand for new energy vehicles as well. We summarize those dynamics and discuss the implications for the auto industry.