China Luxury Car Market Size (2024 - 2029)

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).

• As the economy slowly recovered from the COVID-19 pandemic, consumer demand for premium cars increased. The primary reason for the segment's growth is the continued rise in ultra-high-net-worth individuals (UHNWI) and high-net-worth individuals (HNWI) in China. Therefore, the demand for luxury automobile sales shifted toward countries like China. 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 more new product launches. Most major luxury brands see China as the fastest-growing market in terms of growth rate.
• For instance, in August 2022, FAW Hongqi announced the launch of its all-new LS7 large luxury flagship SUV. It is available in two versions, with the 6-seater version costing CNY 1.3658 million (USD 196.19 thousand) and the 4-seater version costing CNY 1.4658 million (USD 210.5 thousand)
• In the last decade, the market for premium cars in China has grown at an impressive 36 % per year, outpacing the overall Chinese passenger vehicle market's 26% annual growth. According to data from the China Automobile Dealers Association, China's luxury vehicle sales in the first 11 months of the year 2021 exceeded 2 million units, with a year-on-year increase of over 5%. This also marked the third consecutive year for luxury brands to register growth in the wake of downward pressure in China's overall automotive market.
• The German luxury car manufacturers Mercedes-Benz, BMW, and Audi are also focusing on increasing the sale of their electric cars in China. For instance, in July 2022: Audi debuted the Q4 e-tron, the company's first luxury all-electric SUV in China. It is available in four variants, with 4WD and RWD, and is built on the MEB platform and the E3 electronic architecture. It is priced between CNY 299,900 (USD 43,079.17) and CNY 377,100 (USD 54,168.58).
• Currently, luxury carmakers focus on catering to highly advanced cars with better connectivity to smart devices and the internet. This also plays a crucial role in the sales surge of premium cars. For instance, in May 2022, The Dreamer, an electric luxury seven-seat MPV, was launched by VOYAH Automobile Technology Co., Ltd (VOYAH Automobile), a subsidiary of Dongfeng Motor Corporation (Dongfeng Motor). The AUTOHOLD automatic parking system, an intelligent voice interaction system, and a 360-degree panoramic imaging system are among the features available on the Dreamer.

China Luxury Car Industry Segmentation

A luxury car offers higher levels of comfort, equipment, amenities, quality, performance, and associated status than a mid-priced car.

The China luxury car market is segmented by vehicle bodystyle, encompassing hatchback, sedan, sports utility vehicles (SUV), and multi-purpose vehicle (MPV). Additionally, the segmentation includes powertrain type, distinguishing between IC engine vehicles and electric vehicles. 

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