Younger buyers, lower prices

Rising popularity of local, lower-end vehicles could hit automakers' profits

Industrial insiders predict substantial falls in profits for automobile manufacturers in the Chinese market in the near future, as car buyers born in the 1990s lead a shift toward entry-level vehicles.

They observed that the average age of first-time, new car buyers is dropping, causing cheaper, entry-level products to gain in popularity. This could lead to fierce rivalry among automakers in the low-price segment, driving down profitability.