Where is demand coming from?
Growth is back, but demand is changing
Auto demand in China’s less-developed areas is catching up with the coastal
regions and the government is implementing plans on auto consumption, domestic
vehicle brand development, and industry consolidation. As a result, product mix is
shifting and lower-priced, small cars could outperform in the medium term. Auto
demand is strong, but automakers are not positioned equally to capture growth, in
our view.