The Mini-Van Industry Is About To Explode With Sales In China

China Mini-Van Sales

Automakers are betting big on the Chinese market after the country’s government announced that it would ease its one-child policy.

With parents now able to have two children, automobile makers are betting that they will opt into bigger vehicles, specifically family friendly mini-vans.

Mini-vans showed up in throngs at the Guangzhou auto show, where Volkswagen AG presented a supersized version of its Touran and Guangzhou Automobile Group subsidiary GAC Motor showcased a prototype mini-van.

Seven seat mini-vans make up just 10% of passenger cars in China, but analysts say that segment is growing faster than the rest of the auto market.

These seven-seaters currently account for just 10 percent of passenger car sales in China, but sales are growing at a faster pace than the entire auto market, the world’s largest. Multi-Purpose Vehicle sales, of which mini-vans are a part, for the first 10 months of the year grew 7.8%. The overall car market grew by 1.5%.

With multiple generations of family members living under one roof, automotive company’s are betting that more families will need mini-vans to support their growing family size.


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Chinese authorities hope the relaxation of the one-child policy will help increase its population from 1.37 billion at the end of 2014 to 1.45 billion by 2030.

“After the roll out of the two-child policy, I believe the market share of 7-seat SUVs and MPVs will further strengthen,” Wu Song, GAC Motor’s general manager, told Reuters.

The cost of owning two vehicles in China is high, which makes a large 7-seat mini-van all that more attractive to citizens who decide to have a second child.

Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies. He can be reached at College Reviews.