China’s midsize car segment hits seven-year itch

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The Midsize car segment is usually the most profitable one in China’s auto market. The launch of Guangqi Honda’s Accord in 2003 marked a new era for the segment. Since then, the segment has seen rapid growth for more than seven years. However, the segment has experienced a rare sales decline since the start of 2011.

Data shows the average sales growth of the segment’s eight leading models in the first quarter of this year was only 2.3%. The sales of Accord, Camry, and Magotan’s all decreased from a year earlier, in short the segment underperformed the entire market in the first half of this year.

The major reason for the sluggish sales of midsize cars this year is the strong competition from the lower-end A-class cars and the higher-end luxury cars, which compressed the growth space of the segment.