SOEs turn to SUVs for growth

Carmakers pursue higher margins amid slowing sedan sales

Chinese carmakers lead in the fast-growing sport utility vehicles segment, while the joint venture car brands grabbed sustainable profits amid intensified competition in the non-luxury sedan and emerging margin erosion risk.

State-owned brands have benefi ted more from the rising popularity of SUVs, especially due to their dominance in the low-end segment, despite many having high product and model concentration risk.