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Relationships between Vehicle Pricing and Features: Data Driven Analysis of the Chinese Vehicle Market

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Listed:
  • Shiqi Ou

    (Energy and Transportation Science Division, Oak Ridge National Laboratory, Knoxville, TN 37932, USA)

  • Wan Li

    (Energy and Transportation Science Division, Oak Ridge National Laboratory, Knoxville, TN 37932, USA)

  • Jie Li

    (China Automotive Technology and Research Center, Dongli District, Tianjin 300300, China)

  • Zhenhong Lin

    (Energy and Transportation Science Division, Oak Ridge National Laboratory, Knoxville, TN 37932, USA)

  • Xin He

    (Aramco Services Company, Aramco Research Center—Detroit, 46535 Peary Ct, Novi, MI 48377, USA)

  • Jessey Bouchard

    (Aramco Services Company, Aramco Research Center—Detroit, 46535 Peary Ct, Novi, MI 48377, USA)

  • Steven Przesmitzki

    (Aramco Services Company, Aramco Research Center—Detroit, 46535 Peary Ct, Novi, MI 48377, USA)

Abstract

A full-scale understanding of the dynamics of the Chinese vehicle market can benefit stakeholders with respect to rational decision-making and effective long-term investment. This study attempts to discover the common vehicle pricing patterns in the Chinese market by quantifying statistical correlations among critical vehicle features from intrinsic powertrain systems to extrinsic market positioning. The data samples involve almost all passenger vehicle models sold in 2013 to 2019. After comparing multiple statistical methodologies, a log-transformation variant of the multinomial linear regression model was found to be the best one, and the goodness of fit shows that this model can offer stable estimates, which were validated using 2019 market data. The insights achieved are: (1) The price and major performance features of SUVs/crossovers are similar to those of sedans; (2) If all other explicit features remain the same, the price of a Japanese midsize sedan is 62% higher than that of a Chinese midsize sedan, and European midsize vehicles have the highest prices overall. (3) The incremental price of fuel consumption varies by vehicle class and fuel economy. For example, from 30 to 50 MPG, the vehicle price increases by $119 for a Chinese brand sedan vehicle, by $69 for a Chinese brand SUV.

Suggested Citation

  • Shiqi Ou & Wan Li & Jie Li & Zhenhong Lin & Xin He & Jessey Bouchard & Steven Przesmitzki, 2020. "Relationships between Vehicle Pricing and Features: Data Driven Analysis of the Chinese Vehicle Market," Energies, MDPI, vol. 13(12), pages 1-25, June.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:12:p:3088-:d:371880
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    References listed on IDEAS

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