The Midsize car segment is usually the most profitable one in Chinaâ€™s auto market. The launch of Guangqi Hondaâ€™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 segmentâ€™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.