For years the compact sedan has been core to China’s PV market. Many carmakers deployed product launch strategies around this segment, creating a diversified, multi-layered and multi-faceted product footprint utilizing global platforms and locally-developed concepts covering mainstream/niche high, mid- and low-end segments. 

However, over the 2016-2020 period, this segment has significantly shrunk as compact SUVs picked up momentum, putting many carmakers in a tough spot. Is the compact SUV segment becoming the next core segment of the PV market? Who are really the core customers in this segment, and how should carmakers tackle this segment? 

We at YRI have also pondered these questions and would like to offer our own perspectives.