Media365
The spacious vehicles, increasingly popular among wealthy families in mainland China, could drive a rebound in the world’s largest car and electric vehicle (EV) market as they combined Chinese EVs’ technological edge with competitive pricing, according to Morgan Stanley.
Beijing’s initiative to end profit-squeezing competition, including reining in subsidies, had spurred Chinese carmakers to accelerate launches, with six-seat SUVs a focus, said Tim Hsiao, head of the Greater China auto and shared mobility research team at Morgan Stanley.
“The structurally high-frequency launches will become a new norm because of the competition,” Hsiao told the South China Morning Post. “Many of the flagship SUVs are expected to be the key volume drivers,” the veteran auto analyst said, though he cautioned that demand would take time to fully assess.
Overall EV sales remained sluggish, with retail sales down 5 per cent in April, preliminary data from the China Passenger Car Association (CPCA) showed.
