新動(dòng)力訴求強(qiáng)勁建議降低汽車消費(fèi)

DesireforNewPowerisStrong:TimetoLower

ConsumptionTax

InsightsonPurchase

Decision–Power(2024)

TengYiResearchInstitute（YicheResearchInstitute）

Authors

LijunZhou

Director/ChiefAnalyst

zhoulijun1@

YingGao

IndustryAnalyst

gaoying1@

BenyaShi

IndustryAnalyst

shibenya@

QiangZhang

VisualDesigner

zhangqiang9@

Desireforpower:buyerpreferenceonvehicleabilitytoprovideinstantaneousandcontinuousstrongpowerduringstart,

acceleration,takeover,hillclimbandbreakaway

WhileChina’scarmarketgrewvigorouslyoverthepasttwodozenyearsorso,smalldisplacementlow

value-addproductsprimarilypoweredby1.5Lor1.6Lenginesdominatedsalesbutdidnotcontributegreatlytocorporateprofitability.ProductsthataremorepowerfulhavealwaysbeennicheinChina,

unlikethepopularityofgasguzzlersthatdominatethemarketinAmerica.Isitpossibleatallthatsalesofmorepowerfulproductsandthesegmentsthattheyrepresentwillevertakeoff?Cancarmakers

reshapetheirprofitabilitystructureandcultivatehighlyprofitablebusinessfootprintthroughmorepowerfulproducts?

Tohelpcarmakersbetterexcavatesellingpointsrelatedtopower,TYRI(YRI)hascomeupwiththisreport.ButTYRI(YRI)doesnothavetheexpertiseontheresearchofpowertechnologies,only

experienceinuserresearchandinsights.Basedonthisexperience,thisreportfocusesonuserdesireforpowerratherthancritiqueintospecificpowertechnologiestoprovideYichecustomersincluding

OEMsanddealersanindependentanddifferentiatedthird-partyreferencematerial;

Basedonuserperspectivesandmainstreamsegmentationmethods,TYRI(YRI)definesdesireforpowerasbuyerpreferenceonvehicleabilitytoprovideinstantaneousandcontinuousstrongpowerduringstart,acceleration,takeover,hillclimbandbreakawayscenarios;

ThedatapresentedinthisreportismainlybasedonTYRI(YRI)onlineresearchwithover50,000

samplesinthefirstthreequartersof2024,andalsoreferencesonYichebigdataaswellasTYRI(YRI)offlineresearch.

DefinitionofPowerSchematic

Acceleration

InstantaneousOutput

TakeOver

Start

for

Power

ContinuousOutput

HillClimb

Desire

Others

Breakaway

Thedesireforpowerwas39.52%in2024,canpowerbecomeamainstreamsellingpointandhelpcarmakersstandoutin

thisroundoftrade-inwavedrivenbyconsumptionupgrade?

In2024,thedesireforpowerinChina’scarmarketis39.52%.Thoughthisdesireislowerthanthatfor

mainstreamsellingpointslikeprice,energyconsumptionandsafety,itismuchhigherthanthatfornichesellingpointssuchasquietnessandoff-roadiness,whichprovesthatmanycarbuyersarestillsoldonpower;

Theenginedisplacementstructureofthemarketbasedondifferentpoweriscloselycorrelatedwithuserstructure:from2018to2023,theshareofbuyerstradingintheirexistingvehiclesfornewonesprimarilydrivenbyconsumptionupgraderosefrom31%tonearly46%,whilethemarketshiftedtowardonethat

wasdominatedby1.5Land1.6Lsmallenginedisplacementvehiclestoonethatwasdominatedby2.0Landabovehighenginedisplacementvehicles.Theshareofvehiclespoweredby2.0Lenginestopped

30%inthefirstthreequartersof2024;meanwhile,theshareofbuyersbuyingadditionalvehiclesrose

from14%tomorethan26%,primarilydrivenbydesireformobilityenbalingfromfemalebuyers,which

droverigorousdevelopmentofzeroemissionsEVsthatsoonaccountedforover20%ofthemarketfromnearlynon-existence.Thesetypeofcustomerstradingintheirexistingvehiclesfornewonesandbuyingadditionalvehiclessignificantlyimpactedthetraditionalvehiclestructuredominatedbysmalldisplacementengines,resultingintherapidincreaseinshareofEVsandvehiclespoweredby2.0Lengines;

Theevolutionoftheuserstructurereshapingthevehiclepowerstructurebasedonenginedisplace-

mentisonlythebeginning.Thedesirefornewpowerisstillbeingformedandthereisstilllackof

productsthatcancatertothisdesirefornewpower.Carmakersstillneedtodeepentheirresearchintouserevolutionandpowerstructuretrendsandtaketimelymeasures,andavoidrestingontheirlaurelsbettingthatvehiclespoweredby1.5Land1.6Lsmalldisplacementengineswillstillwork.Neithershouldtheybetonlyonthe2.0Lvehicles.

Pre-PurchaseDesireforPowerinChina’sPVMarket2024

Price

Brand

Safety

39.52%

(Power

Energy

Consump

-tion

<7

Other

Quality

ShareofEnd-UserSalesofFirst-TimePurchaseTrade-InandAdditionalPurchaseinChina’s

PVMarket2014-2023

First-TimeTrade-In

AdditionalPurchase

100%

80%

60%

40%

20%

0%

2014201520162017201820192020202120222023

ShareofChinaPVEnd-UserSales

byEngineDisplacement2015-Q1-Q32024

EV

Other2.0L

1.6L1.5L

100%

80%

60%

40%

20%

0%

2015

2016

2017

2018

2019

2020

2021

2022

2023

Q1-Q32024

Source:TYRI(YRI)

Thedesireforpowerfromboomerswhicharepre-dominantlytradinginvehiclesfornewonesisstrong,andconsideringtherigorousgrowthoftheboomermarketintothelargestmarketsegment,boomerscouldspearheada“consumptionwavefornewpower”inChina’scarmarket

Thefirstpriorityinexcavatingproductsellingpointsistofindtherightcustomers.Combiningthetwocorelabelsofgenderandagegroup,boomers(middle-agedmen)hadthehighestdesireforpowerat42.47%.Thatdesireisnotonlyaboutinstantaneousaccelerationandthethrillofbeingpushed

backagainsttheseat,butalsocontinuousoutputofstrongpower.Elderlymalebuyershadthenexthighestdesireforpower.In10years,whenthepost-80sgeneration,alsoknownasthefirstbatchof “l(fā)ittleemperors”thatmassivelyboughtcarsastheyweregettingmarriedenterelderlyage,theywillhavestrongerdesireforpowerastheywilllikelyliveamorecarefreelife.Oddlyenough,youngmenthatnormallylikejoyridesinlifehadthelowestdesireforpoweramongthethreemajormalebuying

groupsatlessthan40%in2024.Thedesireforpowerforfemalebuyerswasgenerallylowerineachofthemajorsub-segmentscomparedtotheirmalecounterparts;

Thereasonwhyboomershavestrongdesireforpoweriscloselycorrelatedwiththeinternalstructureoftheboomercarmarket:in202373.38%oftheboomercarbuyerstraded-intheirexistingcarsfornewones.Rightnow,boomersareprimarilymadeupofthepost-80sgenerationwhichrepresentedthefirstmassivewaveofcarbuyersinChina.Thismeantthatconsumptionupgrade,includingpowerupgradewasamajorcharacteristicofthisroundoftrade-inpurchasesfromboomers,drivingtheir

desireforpower;

Therigorousdevelopmentoftheboomercarmarketoverthepast10yearsorsoresultedinsales

approachingnearly7millionunitsin2023representingamarketshareofover30%,surpassingthe

youngmencarmarketasChina’sleadingcarsegment.Withthishugecustomerfootprintasabasisandtheirstrongdesireforpower,boomerscouldbeleadinga“consumptionwavefornewpower”inChina’scarmarket,drivingnewtrendssuchasenginedisplacementupgrading.Overrecent

years,mostproductspoweredby1.5Land1.6Lsmalldisplacementenginesconfrontedthechallengeofsteepfallinsales.Whiletheycomplainaboutmarketheadwinds,thesecarmakersshouldalso

reflectuponthemselveswhethertheirproductskeptupwithnewmarkettrendssuchaspowerupgrade.

Pre-PurchaseDesireforPowerbyAgeGroup

andGender2024

End-UserSalesandMarketShareofBoomerCarMarket2014-2023(10,000units)

800

EndUserSalesMarketShare

44%

42%

40%

38%

36%

34%

32%

600

400

200

0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

35%30%25%20%15%10%5%0%

ShareofEnd-UserSalesinBoomerCarMarketby

PurchaseType2023

AdditionalPurchase

11.62%

First-Time14.99%

Trade-In73.38%

ShareofEnd-UserSalesbyAgeGroupandGender2023

ElderlyFemale-3.19%

Middle-AgedFemale20.08%

YoungFemale14.82%

YoungMale21.73%

ElderlyMale9.24%

Middle-AgedMale30.95%

Source:TYRI(YRI)

Youth:<35yearsold;middle-aged:35-54;elderly:55&above

Boomersnowprimarilybuycarsforroadtripsandhavestrongdesireforit,whichwillaccelerateandintensifytheevolutionof“consumptionwavefornewpower”ledbyboomers

From2020to2023,theprimarypurchasereasonforboomersthatdominatedthe“consumptionwavefornewpower”quicklyshiftedfromworkcommutetoroadtrip,andofthefivecorepurchasereasonsofroadtrip,workcommute,pickup/dropoffkids,mobilityenablinganddailyupgrade,roadtriphadthestrongestdesireforpowerat44.07%in2024.Becauseroadtripsusuallyinvolvelongdistancedrivingandmorecomplexroadconditions,usersrequireinstantaneousandcontinuousstrongpoweroutputinspecialscenariossuchashillclimb,breakawayandlong-distancedriving,thedesireforpowerforroadtripisthereforenaturallyhigherthanthatforworkcommuteandmobilityenabling;

Therapidswitchinpurchasereasonandthestrongdesireforpowermeanthattheevolutionofthe

“consumptionwavefornewpower”ledbyboomerswillbefuriousandabruptanddoesnotgive

carmakerstoomuchtimetorespondaccordingly.Overthepast4-5yearsorso,therapidcontractionofthe1.5Land1.6Lsmalldisplacementmarketandtheriseof2.0Lhighdisplacementmarketisproof.Butmanycarmakershaveturnedablindeye,andsomehigh-endbrandsinsteadcontinuedtolaunch1.5Land1.6Lsmalldisplacementvehicles;

Overthepast20yearsorso,thefactthatChina’scarmarketwasinanearlyphaseofcarconsumption,Chinesecarmakerswerebehindontechnologiesandrelevantgovernmentdepartmentshadthepush

combineddrovethedevelopmentofsmalldisplacementvehicles.AsconsumptionpowerofChinesecar

buyersgrowstrongerandChinesecarmakersachievebreakthroughsinlargedisplacementvehicle

technologiesmakingthemmoreenergy-saving,andifrelevantgovernmentdepartmentsannounce

supportivepolicies,it’snotoutofthequestionthatlargedisplacement(energy-saving)productsrapidlyrisetobecomeanewpopularproductsegmentinChina’scarmarket;

Eventhough1.5Land1.6LsmalldisplacementvehicleshavelongdominatedChina’scarmarket,thatdoesnotmeanitwillcontinuetobedominatedbythesetypeofvehicles.Thepowerupgradeoverthepast4-5yearsorsowasthebeginning,nottheend.

DesireforPowerbyMajorPurchaseReason2024

50%

40%

30%

20%

10%

0%

RoadTripDailyUpgradeWorkCommutePickUp/DropOffKidsMobilityEnabling

TopPurchaseReasonsTopPurchaseReasons

forBoomers2020forBoomers2023

0%20%40%

WorkCommute

RoadTrip

MobilityEnabling

PickUp/DropOffKids

DailyUpgrade

60%0%20%40%60%

RoadTrip

WorkCommute

MobilityEnabling

DailyUpgrade

PickUp/DropOffKids

Source:TYRI(YRI)

Thequalityandvolumeoftheuserbaseof“consumptionwave

fornewpower”ledbyboomerscontinuetogrow,greatlyelevatingthevalueofChina’scarmarketandrewardingthewinners

Someopportunitiesseemworthlessyetregrettabletopass,suchasthecurrentsmallEVmarket:

thoughvolumescanbegreat,profitabilityispoor,andbecauseofdualcreditrequirementscarmakersoftentimeshavetohaveapresenceinthismarketevenifitmeanslosingmoney.IfChina’sNEV

marketwaslikethesmallEVmarket,carmakerswilleventuallygounder,andnoonewillhavethe

propensitytoparticipate.Then,the“consumptionwavefornewpower”ledbyboomers,willitbehotornot?Wemusthaveaclearanswer;

Thedesireforpowerfromboomersincreaseastheireducationlevelincrease:reachingnearly48%for

masterscomparedto43.45%forbachelors.Inaddition,theshareofbuyerswithbachelorsandmaster’sdegreesrosesteadilyoverthelast10yearsorso,topping40%in2023.Andsincecarpurchasepower

increaseswitheducationlevel,thesefactorstogetherelevatedthevalueof“consumptionwavefornewpower”ledbyboomers.Todiveabitdeeperintothistopic,wecanalsolookatitfromasocialstatus

perspective.Thedesireforpowerfromboomersalsoincreasedastheirincomeincreased:reaching

43.1%formiddle-classboomersandtopping52%forwealthyboomersin2024.Meanwhile,themarketforhighincomebuyersexpandedoverthepast10yearsorso,andplusthefactthatthehigherthe

incomethestrongerthepurchasingpower,wecanalsoconcludethatthe“consumptionwavefornewpower”ledbyboomersisofhighvalue;

Beiteducationlevelorincomelevel,thevalueof“consumptionwavefornewpower”ledbyboomersisquitehigh.OncethiswaveorganicallyintegrateswithNEVs,itcouldbecomeanewopportunityfor

thetransformationandupgradingofChina’sautoindustry.Thefutureisdefinitelybright,butthepathwillbearduous.Themoreparticipantsjointhatpathlater,themorearduousitwillbe.

Pre-PurchaseDesireforPowerFromBoomersbyEducationLevel2024

Pre-PurchaseDesireforPowerFromBoomers

bySocialStatus2024

50%

40%

30%

20%

10%

0%

60%

50%

40%

30%

20%

10%

0%

BlueCollar

Middle-Class

Wealthy

ChinaCarMarketSharebyBuyerEducation

100%

80%

60%

40%

20%

Level2014-2023

Master

Bachelor

JuniorCollege

HighSchool/VocationalMiddleSchool&Below

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

0%

ChinaCarMarketSharebyBuyerSocialStatus2014-2023

Wealthy

Middle-ClassBlueCollar

100%

80%

60%

40%

20%

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

0%

Source:TYRI(YRI)

Bluecollar:householdannualincome<RMB150K;middle-class:RMB150K-500K;wealthy:>RMB500K

Carmakersbattlinginthe“consumptionwavefornewpower”

ledbyboomersmustfocusonenergy-savingandICEvehicles,usersactuallydonothavethatmuchdesireforpowerforpowerfulEVs

Ifthefutureisbright,thenwemustfigureoutwheretobegin.Itobviouslystartsoutwiththeproduct.OurresearchshowsthatChineseusershavemuchstrongerdesireforpowerforenergy-saving

vehiclesandtraditionalICEvehicles,especiallyforEREVsatover46%in2024.ThisismainlyduetothefactthatmostoftheEREVsalessofarhavecomefromhigh-endbrandslikeLiAutoandAITO;HEVslikeSiennaandGranviacomenext,andICEvehiclesrankthirdintermsofdesireforpowerbyenergytype.It’snottheendofICEvehicles,atleastnotyet,carmakersshouldraceagainstthe

clocktoupgradetheirICEvehiclesandaccelerateeffortstoofferenergy-savingvehiclesespeciallylargerones.PHEVsrankedfourthintermsofdesireforpower,mainlybecausePHEVsareprimarilycompactvehiclesthatdon’thavestrongdesireforpowerinthefirstplace.IfbiggerPHEVslaunch-ingtomarkettowardtheendof2024liketheBYDXiaandTangLperformwell,thenthedesirefor

powerforPHEVscouldrise;

Lookedatindividually,inordertobettercatertousers’desireforpowerandownershipexperience,allfourofthesepowertrainmodeshavethetendencytohaveengineswithbiggerdisplacements.

Rightnow,ToyotadominatetheHEVsegmentandisthemostactiveatlaunchingHEVswithbiggerengines.OncesupportivepoliciesforNEVsendafter2027,HEVspoweredby2.5Landabove

enginesmightattractmoreboomers.ChinesecarmakerslikeGeely,BYD,GreatWallMotorandLiAutomustconsiderHEVswhiletheyactivelypushtoexpandandupgradetheirPHEVandEREVproductofferings;

Rightnow,manyEVsusepowerasacoresellingpoint,butusershavethelowestdesireforpowerforEVs,atjust30.36%in2024,makingEVstheonlypowertraintypewithadesireforpowerlowerthanindustryaverage,mainlybecausefemalebuyersthatdon’thavemuchdesireforpowerare

primarybuyersofEVs.ThisconclusionmightmakethoseEVmanufacturersthatprimarilyfocusonthepowersellingpointfeelawkward.CarmakersthatspendafortunetotrytosetrecordlaptimesattheNürburgringNordschleifeshouldinsteadshowtheirEVsontheinternationalcatwalk;

Inordertoprovetheconclusionthatthe“consumptionwavefornewpower”ledbyboomersis

focusedonICEvehiclesandenergy-savingvehicles,wecanfurtherdissecttheinternalstructureoftheboomercarmarket.In2023,virtuallyallmodelslistedinthetop20rankingsintermsofboomer

carmarketshareorboomercarpenetrationwereICEvehiclesandenergy-savingvehicles,highly

overlappingthepowertraincharacteristicsof“consumptionwavefornewpower.”In2023,compactICEvehiclesdominatedtheboomercarmarketsharerankingswhilemanylargeenergy-saving

vehiclesappearedontheboomercarmarketpenetrationrankings.Becausemarketsharedatacanpartiallyreflectthecurrentmarketlandscapeandpenetrationdatacanpartiallypreviewnewmarket

trends,theboomercarmarketwillcontinuetoevolvefromonedominatedbycompactICEvehiclestoonedominatedbylargeenergy-savingvehicles.

DesireforPowerbyEnergyType2024

40%

30%

20%

10%

0%

50%

EREVHEVICEVPHEVBEV

TopMainstreamModelsinBoomerMarketShare2023

Top20MainstreamModelsin

BoomerMarketPenetration2023

0%1%2%3%0%20%40%60%80%

SongPLUSNEVModelYSylphy

QinPLUSNEV Lavida AIONS SagitarHavalH6

SongProNEVCorolla

Chang'anCS75PLUSXingyueLHan

HondaCR-VBuickGL8Frontlander Emgrand RAV4 CamryDenzaD9

HongqiE-QM5GACTrumpchiGS8DenzaD9

QinNEVGACTrumpchiM8

BuickGL8 Chang'anCS75WulingHongguangSVELITE6

XingyueL

LiL8WulingJiachenBestuneB70

AITOM7 SongProNEVHavalBigDogGenIIBoyue

AIONS

GalaxyL7

LiL9

Source:TYRI(YRI)

Mainstreammodelsdenotethosewithend-usersalesofmorethan30,000unitsinChinain2023

Thedenominatorofthepenetrationrateisthebrand/modelitself,whilethenumeratoristheactual

valueofvariable,thisbetterreflectstheconditionsofthesaidbrand/model,sowearenotgoingtodohorizontalcomparison;marketsharedenotesvariableasapercentageoftotalindustryvolume

UsershaverelativelylowdesireforpowerforEVsmainlybecause

offactorssuchasfemalebuyersdominatesales,theyprimarilyuse

themforshortcommutes,caremoreaboutbangforthebuckand

EVsnaturallyhavefastaccelerationbutpoorcontinuouspoweroutput

Tocarmakers,EVsarelikemusclemen.Buttousers,theyarejustlittlebrothers.Thisisdirectlyrelatedtotheiruserstructure,usecase,coresellingpointandbatterycharacteristic:in2003,nearly70%ofEVsaleswenttofemalebuyers,whodonothaveastrongdesireforpower,reachingonly35.66%in2024.ThishasresultedinmanyEVmodelsthataimedtoattractyoungmalebuyerswithsportyfeatures

insteadhavingtoresorttoyoungormiddle-agedfemalebuyers,eventheXiaomiSU7attractedsignifi-cantfemalebuyers;ledbyfemalebuyers,in2023,thecorereasonsforbuyingEVswereworkcommuteandmobilityenabling,whichdonotrequiredesireforpower;in2023EVusersweremostsatisfiedwith

lowcomprehensivecost,orgreatbangforthebuck,followedbyeasierdriving,whichisassociatedwithnaturalEVcharacteristicssuchasgoodacceleration.EVusersweremostlydissatisfiedwithlowrange,severebatterydegradationandstateofchargedrop.TheseareallinherentcharacteristicsofEVsthat

can’tbechanged.EVshaveobviousprosandcons.Theyhavestronginstantaneouspoweroutputbutnotcontinuouspoweroutput,whichmightbeaturnoffforboomers;

IftraditionallargedisplacementICEvehiclescanbeupgradedtosmalldisplacementenergy-saving

vehiclesorevenlargedisplacementenergy-savingvehiclesviaelectrificationtechnologies,it’llensure

thattheynotonlyhavestronginstantaneousbutalsocontinuouspoweroutput,whichwillbettersatisfyuserdesireonpower.Rightnow,smalldisplacementenergy-savingvehicleslikeDenzaD9,LiLseriesandAITOMseriesaswellaslargeICEvehicleslikeTeramont,TavendorandEnclavetheoreticallyallhaveroomforfurtherupgrading.EVsthatcanoffersomeoftheadvantagesofICEvehiclesand

energy-savingvehiclesshouldalsobeabletomeetthedesireforpowerfromboomers.Hybridproductsthatwillcomeoutin2025liketheXpengG9andZEEKR009willvalidatethisperspective,andcould

impacttheLiLseriesandAITOMseriesthatdidexceptionallywellin2023-2024.

ShareofEVSalesbyGender2023

42%

40%

38%

Female66.96%

36%

34%

32%

Male33.04%

Pre-Purchase

DesireforPowerbyGender2024

MobilityEnabling

44%

MaleFemale

Top5PurchaseReasonsfor

EVs2023

WorkCommute

RoadTrip

PickUp/DropOffKids

DailyUpgrade

0%20%40%60%

Top5Satisfaction

FactorsforEVs2023

Top5DissatisfactionFactorsforEVs2023

0%20%40%

LowComprehensiveCost

EasiertoDrive(Acceleration)

Quieter

NoRestrictions

Gov'tSubsidy

60%0%20%40%60%80%

ShortRange

SevereBatteryDepletion

SevereSoCDropwithA/CorHeaton

InconvenientCharging

SevereSoCLossoverlast100km

Source:TYRI(YRI)

Carmakersbattlingtocapitalizeonthe“consumptionwavefor

newpower”ledbyboomersmustfocusonproductsthatarebigger

vehiclesize,biggerdisplacement,moremulti-purpose,moredistinctiveandmorehigh-end

Ifcarmakerswanttobettercapitalizeonthe“consumptionwavefornewpower”ledbyboomers,they

havetoconsiderfactorsinadditiontofocusingonenergy-savingvehiclesandICEvehicles.Firstofall,it’sbiggercars:thedesireforpowerincreaseswithvehiclesize.In2024itwas42.66%formidsize

vehicles,46.54%formidtolargesizevehiclesand47.42%forlargevehicles;second,it’sbigger

engines:inadditiontoEVsthatarepopularamongfemalebuyersthatarestealingmarketshareof

smalldisplacementvehicles,biggerdisplacementvehiclespopularamongmalebuyersarealso

squeezingawaymarketshareofsmalldisplacementvehicles.Inthefirstthreequartersof2024,the

marketshareof1.5Land1.6Lvehiclesfellbelow35%,whilethatof2.0Lvehiclestopped30%,andthat

of2.5Land3.0Lhighdisplacementvehiclesincludingthosepoweredbybothnaturallyaspiratedand

turbochargedenginesallincreased;third,it’smulti-purpose:in2024thedesiresforpowerforSUVsandMPVswereallhigherthanindustryaverage,at41.78%and42.95%,respectively.Thisisobviouslyduetothefactthatmulti-purposeproductsarebettersuitedformultiuse-casesandlongdistance

driving;fourth,it’sdistinctiveness:in2024thedesireforpowerofsportscarstopped50%,reaching54.2%.Asoftheendof2024,thereisyetasportscarmodelthathashadsignificantsalesvolumesinChina,evenentrylevelmodels.Butthatdoesn’tmeanonewillneverarrive.Asthedesireforpowerstrengthens,it’sonlyamatteroftimebeforeablockbustersportscarmodelemerges;fifth,it’s

high-end:in2024thedesireforpowerofhigh-endbrandsreached44.5%,higherthanthatofvolumeandentrybrands.Rightnow,thedownsizingofenginesandbatteryelectrificationofmainstream

high-endbrandslikeAudi,MercedesandBMWisgoingagainstthe“consumptionwavefornewpower”ledbyboomers;

Overrecentyears,modelsliketheLiAutoLseries,AITOMseries,DenzaD9andTANKseriesthat

offeredmodelsthatmatchedthefiveproductcharacteristicsdescribedabovebenefitedtremendously.Butpriorto2021,thesetypeofproductswerealmostallniche.Overthenextfewyears,thesefive

producttrendswillonlybecomestronger.Carmakersthatreallywanttocapitalizeonthe“consumptionwavefornewpower”ledbyboomersmustproactivelyaddmorepowerfulproductslikelargedisplace-mentvehiclestotheirarsenal.

DesireforPowerbyShareofChinaPVMarketMarket

VehicleSize2024End-UserSalesbyMajor

Displacement2015-Q1-Q32024

100%

80%

60%

40%

Other3.0L2.5L2.0L

1.6L1.5LEV

50%

40%

30%

20%

10%

0%

Micro

Small

Compact

Midszie

MidtoLarge

Large

DesireforPower

byVehicleType2024

60%

50%

40%

30%

20%

10%

0%

CarSUVMPVSportsCar

20%

0%

2015

2016

2017

2018

2019

2020

2021

2022

2023

Q1-Q32024

DesireforPower

byBrandType2024

50%

40%

30%

20%

10%

0%

EntryVolumeHigh-End

Source:TYRI(YRI)

Entry:midpricepoint<RMB120K;volume:RMB120K-250K;high-end:>RMB250K

Carmakersthereforemusthavefivecorrespondingtypesofvehiclesintheirarsenal:sportscars,off-roadvehicles,businessvehicles,

executivesaloonsandlargefamilyvehicles

Thebattleforboomerswholeadthe“consumptionwavefornewpower”attheendofthedayisreallyallabouttheproduct.Nowthatweknowthefiveproducttrends,wehavetofigureoutthecorrespondingproductroadmap:fromaproductattributepointofview,AvantGardehadthehighestdesireforpower

in2024at57.17%.Overthepastyearorso,fromtheAIONHYPTECSSRpricedbetweenRMB1.286-millionandRMB1.686million,totheYangWangU9pricedatRMB1.68million,totheZEEKR001FR

pricedatRMB769,000andtotheXiaomiSU7Ultrathatrecentlywentonpre-saleatRMB814,900,

manycarmakersareproactivelydippingtheirtoesintobatteryelectricAvantGardeproducts.Butthesetypeofvehiclesremainnichewithinfinitesimalsalesvolumesin2024.SportybrandslikeLotusmight

wanttotrytheirluckwithICEandener