The Buick GL8, here on display at an auto show held in Xi’an, Shaanxi province, is the best-selling multipurpose vehicle produced by SAIC GM. [Photo provided to CHINA DAILY]
A growing number of Chinese and international carmakers are jumping on the bandwagon of premium multipurpose vehicles, or MPVs, eyeing opportunities brought by larger families and more time spent traveling in the world’s largest vehicle market.
Sino-Japanese joint venture FAW Toyota unveiled the Granvia last week, which is expected to hit the market in the second half of this year.
The model, based on Toyota’s TNGA platform, measures 5,175 millimeters in length, with a wheelbase of 3,060 mm, thus offering greater space for driver and passengers.
The interior includes a liquid crystal dashboard and a 12.3-inch infotainment display. The model is equipped with the carmaker’s latest smart safety system.
Zhao Dong, an executive at FAW Toyota, said the Granvia is designed for both family travel and business use. Currently, the absolute majority of premium MPVs in the Chinese market are designed for business use.
The joint venture is one of a number by carmakers that have been exploring the premium MPV market.
So far this year, brands including SAIC Maxus, SAIC Roewe, Denza and Dongfeng’s premium marque Voyah have unveiled MPV models.
All of them are mid or large-sized, with luxury interiors and the latest technology including advanced driving assist functions.
Unveiled on May 17, Denza’s model, called the D9, has its most expensive variant priced at 660,000 yuan ($92,130).
The brand, a joint venture between Chinese carmaker BYD and Daimler, said it had received more than 13,600 orders within a week of its unveiling. The model will hit the market in the second half of the year.
Zhao Changjiang, president of Denza, said the demand for premium MPVs is growing in the market.
Statistics from the China Passenger Car Association show that MPV sales in the country reached 206,000 units from January to March this year.
Of them, those priced more than 200,000 yuan totaled 102,000 units, up 11.1 percent year-on-year, while those priced below 150,000 yuan, represented by the Wuling series, saw their deliveries slump 27 percent from the same period of 2021.
Cui Dongshu, secretary-general of the CPCA, said the trend is fueled by the fact that Chinese families now have more children, and they are spending more time traveling.
The major selling points of MPVs are space and comfort, so buyers would like to trade up for premium ones.
“There is greater potential considering the fact that we are having bigger families in China,” he said.
The rosy prospects have also attracted brands including FAW’s Hongqi, Geely’s Zeekr as well as Great Wall Motors’ premium brand Wey to the segment, with their models expected to soon join the competition.
The influx of premium MPVs may also reshuffle the ranks of the segment’s popular models. So far, the GL8 from SAIC GM’s Buick marque has been the best-seller.
In the first four months, its deliveries totaled 37,900 units, accounting for 15.6 percent of the segment. It was followed by GAC Toyota’s Sienna and GAC Motor’s Trumpchi M8, each seizing an 8 percent market share, according to the China Passenger Car Association.