Who are the key players in China Luxury Car Market?

Lexus (Toyota Motor Corporation), Daimler AG (Mercedes-Benz), Volkswagen Group (Audi AG), Zhejiang Geely Holding Group, BMW AG and Lexus (Toyota Motor Corporation) are the major companies operating in the China Luxury Car Market. Read More

What years does this China Luxury Car Market cover, and what was the market size in 2023?

In 2023, the China Luxury Car Market size was estimated at USD 149.64 billion. The report covers the China Luxury Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Luxury Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

What trends are influencing the China Luxury Car Market?

Key trends that are influencing the China luxury car market are a) Increasing adoption of electric vehicles (EVs) b) Integration of advanced technologies like Artificial Intelligence (AI) and Internet of Things (IoT) c) Growing emphasis on sustainable and environmentally friendly vehicles Read More

What are the key challenges faced by the China Luxury Car Market?

Major challenges faced by the China Luxury Car Market are a) Regulatory pressures, especially related to emissions and vehicle imports b) Intense competition in the market c) Need to adapt to rapidly changing technology Read More

China Luxury Car Market Size

Market Size of China Luxury Car Industry

Study Period	2019 - 2029
Base Year For Estimation	2023
Market Size (2024)	USD 154.67 Billion
Market Size (2029)	USD 181.49 Billion
CAGR (2024 - 2029)	3.25 %
Market Concentration	High
Major Players *Disclaimer: Major Players sorted in no particular order

China Luxury Car Market Analysis

The China Luxury Car Market size is estimated at USD 154.67 billion in 2024, and is expected to reach USD 181.49 billion by 2029, growing at a CAGR of 3.25% during the forecast period (2024-2029).

Over the long term, due to the continued rise in ultra-high-net-worth individuals (UHNWIs) and high-net-worth individuals (HNWIs) in China, the demand for luxury automobile sales may grow. Due to strong geolocation and technological shifts, particularly in China, more regional demand for high-priced automobiles has attracted new entrants to the market, resulting in new product launches. Most major luxury brands see China as the fastest-growing market.

For instance, in April 2024, Mercedes-Benz opened a new tab to launch a luxury electric van for the Chinese market based on its VAN.EA platform.

According to BMW’s annual report, China held the highest share of 32.3% in global automotive sales in 2023.

Similarly, China was the largest single market for Audi as of 2023. The company delivered a total of 729,042 vehicles (2022: 642,548 vehicles) in China, 13% more than the previous year.

E-SUVs are popular among electric passenger vehicles due to their operational capability, high-end technology, and improved safety. E-SUV has several benefits over conventional automobiles, including improved vehicle dynamics, reduced fuel consumption, and low-noise electric drive. In addition, China promotes the adoption of electric cars through subsidies, tax credits, and other incentives, leading to the exponential demand for luxury electric cars.

The German luxury car manufacturers Mercedes-Benz, BMW, and Audi are also focusing on increasing sales of their electric cars in China. For instance, in December 2023, Mercedes-Benz debuted the E Class L, the company's luxury, long-wheelbase car in China.

Considering the growth, luxury carmakers are also offering highly advanced cars by increasing their production capacities to meet the high demand in China.

In 2024, Audi announced its plans to set up a new factory in Changchun (China) to manufacture more than 150,000 models of the Q6 e-tron and A6 e-tron product lines per year for the local market.

Thus, such developments are expected to boost the market in the coming years.

China Luxury Car Industry Segmentation

A luxury car offers higher comfort levels, equipment, amenities, quality, performance, and associated status than a mid-priced car. The scope of the report covers details about recent developments, trends, and technologies in the market.

The market is segmented by vehicle body style and powertrain type. By vehicle body style, the market is segmented into hatchbacks, sedans, sports utility vehicles (SUVs), and multi-purpose vehicles (MPVs). By powertrain type, the market is segmented into IC engine vehicles and electric vehicles.

The report offers market size and forecasts in terms of value (USD) for all the above segments.

By Vehicle Body Style
		Hatchbacks
		Sedans
		Sports Utility Vehicles (SUVs)
		Multi-purpose Vehicles (MPVs)

By Powertrain Type
		IC Engine Vehicles
		Electric Vehicles

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China Luxury Car Market Size Summary

The China luxury car market is poised for significant growth, driven by an increase in ultra-high-net-worth and high-net-worth individuals. This burgeoning demand is attracting new entrants and prompting major luxury brands to launch new products tailored for the Chinese market. The market is witnessing a surge in the popularity of electric SUVs, which are favored for their advanced technology, safety features, and operational capabilities. The Chinese government's support for electric vehicles through subsidies and tax incentives further fuels this demand, encouraging luxury car manufacturers like Mercedes-Benz, BMW, and Audi to expand their electric vehicle offerings. The strategic focus on electric mobility and the establishment of new production facilities, such as Audi's planned factory in Changchun, underscore the market's potential for continued expansion.

The luxury car market in China is characterized by a strong presence of both global and regional players, who are leveraging strategies like new product launches and collaborations to maintain their competitive edge. The market's growth is also supported by favorable government policies, such as tax exemptions for new energy vehicles, which aim to revitalize the automotive sector. The increasing production and sales of electric vehicles, coupled with China's status as the world's largest electric mobility market, highlight the sector's dynamic nature. Major automotive companies, including BMW, BYD, and Lexus, are investing heavily in technology and production capacity to meet the rising demand for electric vehicles. This strategic focus, along with the involvement of Chinese battery manufacturers like CATL and BYD, is expected to drive the market's growth trajectory in the coming years.

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China Luxury Car Market Size - Table of Contents

1. MARKET DYNAMICS
1. 1.1 Market Drivers
  1. 1.1.1 Growing Trend of EVs is Expected to Drive the Market
2. 1.2 Market Restraints
  1. 1.2.1 High Cost of Luxury Vehicles May Hamper Market Growth
3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis
  1. 1.3.1 Threat of New Entrants
  2. 1.3.2 Bargaining Power of Buyers/Consumers
  3. 1.3.3 Bargaining Power of Suppliers
  4. 1.3.4 Threat of Substitute Products
  5. 1.3.5 Intensity of Competitive Rivalry
2. MARKET SEGMENTATION (Market Size in USD Billion)
1. 2.1 By Vehicle Body Style
  1. 2.1.1 Hatchbacks
  2. 2.1.2 Sedans
  3. 2.1.3 Sports Utility Vehicles (SUVs)
  4. 2.1.4 Multi-purpose Vehicles (MPVs)
2. 2.2 By Powertrain Type
  1. 2.2.1 IC Engine Vehicles
  2. 2.2.2 Electric Vehicles