Growth in China’s SUV Market Expected to Slow This Year

Growth in demand for SUV/crossover vehicles in China is likely to slow to 20% from 44% last year, says the China Assn. of Automobile Manufacturers.

Sales through the first half of 2017 climbed 17% to 4.5 million units. But CAAM predicts full-year volume will reach a record 11 million units.

The trade group notes that domestic brands—some of which are marketing clones of more expensive foreign models—accounted for 60% of the segment in January-June, up 3.6 points from the same period last year.

SUV/crossovers captured 40% of all passenger vehicle sales in China during the first half compared with 16.7% five years ago. CAAM says much of the growth is coming from young and middle-aged buyers in China’s third- and fourth-tier cities.