China’sNewCarMarket:

a“RichMan’sCarMarket”

InsightsonHouseholdIncome&

ExpenseofChineseCarBuyers-Income

TengYiResearchInstitute

Authors

LijunZhou

Director/ChiefAnalyst

zhoulijun1@

YingGao

IndustryAnalyst

gaoying1@

BenyaShi

IndustryAnalyst

shibenya@

Averagehouseholddisposableincomeofnewcarbuyersrose

steadilyoverrecentyears,toppingRMB200,000in2024despiteeconomicchallengesasChina’snewcarmarketisincreasinglybecominga“richman’scarmarket”

TheChineseeconomyinrecentyearshasconfrontednumerouschallengesincludingthepandemicanditsaftershockaswellasanintensifyingU.S.-Chinatradewar,resultinginweakeconomicandjobgrowth.CarbuyersinChinathereforearesupposedtohavelessspendingpower.YetourresearchshowsthataverageandmedianhouseholddisposableincomeofChinesecarbuyersinrecentyearshaverisensteadilyfrom

RMB164,500andRMB114,900in2020toRMB204,900andRMB150,400in2024,respectively;

DatafromtheNationalBureauofStatisticsshowedthattheaverageandmediandisposableincomeofChineseresidentsin2024reachedRMB41,300andRMB34,700,respectively.Basedonanaverageof

2.82peopleperhousehold,thatequatestoanaverageandmedianhouseholddisposableincomeofless

thanRMB120,000andlessthanRMB100,000respectively,oraboutRMB80,000andRMB50,000lessthantheaverageandmedianhouseholddisposableincomeofChinesecarbuyers.Inaway,Chinesenewcar

buyersare“rich,”andtheChinesenewcarmarkethasbecomea“richman’scarmarket.”New

high-endbrandslikeTesla,LiAuto,AITO,Xiaomi,Denza,TANKandFangChengBaothatprimarilysellvehiclespricedaboveRMB200,000haveemergedoverrecentyearsandtheirsaleshavebroadlyrisen,whilemanymainstreambrandslikeVW,Nissan,Honda,BuickandHavalthatprimarilysellvehiclespricedbelowRMB200,000haveexperiencedsignificantfallinsales,somerathersevere.ThisfurtherprovesourconclusionthatChina’snewcarmarketisincreasinglybecominga“richman’scarmarket;”

In2024,middle-classandwealthybuyerstogetheraccountedforover50%ofChina’snewcarsalesforthefirsttime.Ifwetreatthesetwogroupsofbuyersas“richpeople,”thenChina’snewcarmarkethasofficiallyenteredaneweraof“richman’scarmarket.”Thisconclusionifprovenwillcatchmany

carmakersbysurprise.Rightnow,thecorestrategyatmanymainstreamcarmakersstillrevolvesaround“low-incomefamilies”withastrategicpursuitofpopularizingcarconsumption.Butmanyofthese

carmakersareunknowinglylosingtousedcarsinthiseffort:comparedtonewcars,usedcarsareactuallyeasiertopopularize.

ChineseHouseholdDisposableIncome2020-2024(RMB10,000)

AverageMedian

12

10

8

6

4

2

0

20202021202220232024

Source:NationalBureauofStatistics

ChinesePV(NewCar)BuyerHouseholdDisposableIncome2020-2024(RMB10,000)

AverageMedian

25

20

10

5

0

15

2020

2021

2022

2023

2024

ChinaPV(NewCar)

SalesbySocialStatus2014-2024

Wealthy

MiddleClassBlueCollar

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Source:TYRI

Bluecollar:annualhouseholdincome<RMB150,000;middleclass:annualhouseholdincomebetweenRMB150,000&RMB500,000;wealthy:annualhouseholdincome>RMB500,000

Intermsofthesourceofhouseholdincomeofcarbuyers,it’smuchmorediversifiedformiddle-classandwealthybuyers,

whichisconducivetoChina’snewcarmarkettobetterwith-standeconomicpressureandachievehighqualitydevelopment

ThoughthemedianandaveragehouseholddisposableincomeofChinesenewcarbuyersin2024

toppedRMB150,00andRMB200,000respectively,theirsourceofincomehasbeenrathersingular:

salaryandyear-endbonuswastheprimarysourceofhouseholdincomefor73.72%ofcarbuyers,

followedbyoperationalincomeatamuchlower11.97%andfinancialincomeat11.95%.Worthnotingisthatpension/retirementfundwastheprimarysourceofincomefor7.85%ofcarbuyers,whichisofgreatreferenceforunderstandingthedevelopmentoftheelderlycarmarket.Newformsofpersonalonline

e-commerceandlivestreaminghasbecometheprimarysourceofhouseholdincomefor3.41%ofcarbuyers,makingitatop10sourceofprimaryincome.Evenredpacket/cash/giftshasmovedintothetop

10asaprimarysourceofhouseholdincomefor2.05%ofcarbuyers;

It’sevenmoreinterestingifwepeeltheonionbackabitfurther:thesourceofhouseholdincomefor

bluecollarnewcarbuyersin2024wasalsoverysingular,withsalary/bonusaccountingformostofthesales,followedbyservicefeeatamuchlowerproportionat11.29%andagriculturalincomeat9.4%.

Othersourceslikeoperational,financialandrentalincomeaccountedforverysmallproportions;thoughsalary/bonusalsowastheprimarysourceofhouseholdincomeformiddle-classandwealthynewcarbuyers,evenhigherthanthatforbluecollarbuyers,theoverallstructureismorediversifiedandhas

higherquality,asoperationalincomewastheprimarysourceofhouseholdincomefornearly20%inbothgroups.Unsurprisingly,financialincomewasthesourceofprimaryhouseholdincomefor36%ofwealthycarbuyers,comparedto18%formiddle-classbuyersandonly5%forbluecollarbuyers.

Rentalandassetsalealsoaccountedforahighershareasaprimarysourceofhouseholdincomeforwealthybuyers…

From2020to2024,theChineseeconomyconfrontedmanychallengesincludingthepandemicand

U.S.-Chinatradewar,thebluecollarclasswithlimitedsourceofincomewasunderthemostpressure,resultingintheshareofbluecollarcarbuyersinChina’snewcarmarketfallingtobelow50%from

morethan60%.TheautomobilehasbecomeanecessityformanyChinesefamilies.Bluecollarbuyersmightnotbuynewcarsbutthatdoesn’tmeantheywillnotbuycars:theycancertainlybuyusedcarsthathavemorebangforthebuck.Meanwhile,middle-classandwealthybuyerswithmorediversifiedsourceofhouseholdincomehavestrongercapabilitiestowithstandeconomicpressure,andplusthefactthatmiddle-classandwealthycarbuyerstogetheraccountedformorethan50%ofChina’snewcarsalesforthefirsttimein2024,itwillbeconducivetoChina’snewcarmarkettobetterwithstand

economicpressureandachievehighqualitydevelopment.

Top10PrimarySourceofChinesePV(NewCar)BuyerHousehold

DisposableIncome2024

Salary/Bonus

OperationalIncome

FinancialIncome(Bonds,MutualFunds,Stocks)

ServiceIncome(Performance,Consulting,PartTime)

AgriculturalIncome

(Farming,Breeding)Pension/RetirementFund

Rental(Housing,Factory)

PersonalOnlineE-Commerce/Livestream

RedPacket/Cash/GiftsAssetSale(RealEstate,Cars)

0%10%20%30%40%50%60%70%80%

PrimarySourceofChinese

PV(NewCar)BuyerHousehold

DisposableIncomebySocialStatus2024

BlueCollarMiddleClassWealthy

0%25%50%75%100%

Salary/Bonus

OperationalIncomeFinancialIncome

(Bonds,MutualFunds,Stocks)ServiceIncome

(Performance,Consulting,PartTime) AgriculturalIncome (Farming,Breeding)Pension/RetirementFund

Rental(Housing,Factory)PersonalOnlineE-Commerce/Livestream

RedPacket/Cash/GiftsAssetSale(RealEstate,Cars)

Source:TYRI

Thehighertheeducationlevel,thehighertheaveragehouseholdincome,whichtoppedRMB400,000forpostgraduates,carmakersbattlingforthe“richman’scarmarket”shouldprimarilytargetbuyerswithhigheducationlevels

WherehaveallthefortunecomefromforChinesewealthypeople?BeforeitmighthavefallenfromtheskyaslotsofearlyAudi,MercedesandBMWbuyerswerethosethatgotrichinahurry.Butnowadaysfortuneandwealthfromhigh-incomefamiliesmostlycomefromhouseholdmemberswithhigh

educationlevels.Educationlevelhasbecomeacoremeasuringstickofwealthdistributionamong

familiesofChinesenewcarbuyersasof2024.AveragehouseholddisposableincomeofbuyerswithpostgraduatedegreesreachedRMB408,000,whilethoseofonesthathaveundergraduate,junior

college,highschool/secondaryandmiddleschool&belowdegreesdroppedsignificantlyto

RMB245,000,RMB175,200,RMB132,200andRMB100,300,respectively;

ThedistributionofhouseholdincomeofChinesenewcarbuyersbyeducationlevelin2024wasratherdistinctive:morethan20%ofbuyersthathavemaster’sdegreeshadhouseholdincomeof

RMB500,00ormoreandover85%hadhouseholdincomeofRMB150,000ormore.Thepostgraduatecarmarketrepresentsthetypical“richman’scarmarket;”householdincomeforthemajorityof

buyerswithundergraduateorjuniorcollegedegreeswasbetweenRMB100K-149.9K,butnearly70%oftheformerhadhouseholdincomeofRMB150,000ormore,ormiddle-class,whichcanbeconsidered

“richman’scarmarket;”,whileitsonlyslightlymorethan40%forthelatter,whichisdominatedby

bluecollarbuyers;householdincomeforthemajorityofbuyerswithhighschool/secondarydegreeswasbetweenRMB50K-99.9K,butthosewithRMB150,000andmoreaccountedforlessthan30%,so

mostlybluecollarbuyers;householdincomeforthemajorityofbuyerswithmiddleschoolorbelowdegreeswasbelowRMB50K,onlyslightlymorethan10%hadhouseholdincomeofRMB150,000ormore,sotheyarepredominantlybluecollarbuyers;

Let’snotfussoverwhethergoingtoschoolisworthitornot,butperhapswecanagreethathavingadiplomaisbetterthannothavingone.Thoughmoreandmoreuniversitystudentsbegandoing

take-outandexpresspackagedeliveriesin2023-2024followingthepandemic,theystillaccountforaverysmallpercentageofuniversitystudents,andmostofthemtreatitasatemporarytransitionbeforepossiblyfindingnewandbetterjobs.Withoutthatdiploma,take-outandexpresspackagedelivery

mightbetheglassceilingforgettingajob.Althoughwemustadmitthattherearewealthypeoplethathaveloweducationlevels,thisproportionisonlygoingtogetsmaller.Wearenotgoingtocommentontherelationshipbetweeneducationalbackgroundandsocialstratification,weonlyhopepeoplecherishandvaluetheirhard-earnedopportunitytogotoschoolsincetimeismoney;

Adiplomamaygetyouhiredbutitcouldalsogetyoufired.It’sprettycommonthesedaysforany

largecompanytocutjobs.Adiplomaisapieceofpaperbutalsorepresentsanattitude.Onlythroughcontinuouslearningcanweimproveourabilitiesandprovethatdiploma’sworthiness.Wemustnotonlyrememberthatweneedtostudyhardtoexpectalifetimeofglory,butwealsoneedtorememberthatit’snevertoooldtolearn.Nomatterifyouareinschoolorworking,youmustcherishyourtimeoflearning.

Source:TYRI

數據來源：公開資料整理

ChinaPV(NewCar)BuyerAverageHouseholdDisposableIncomebyEducationLevel2024(RMB10,000)

40

35

30

25

20

15

10

5

0

45

HighSchool/Secondary

MiddleSchool&Below

JuniorCollegeUndergraduatePostgraduate

ChinaPV(NewCar)BuyerHouseholdDisposableIncomeDistribution

byEducationLevel2024

RMB500K&AboveRMB450K-499.9K

RMB400K-449.9KRMB350K-399.9K

RMB300K-349.9KRMB250K-299.9K

RMB200K-249.9KRMB150K-199.9K

RMB100K-149.9KRMB50K-99.9K<RMB50K

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

HighSchool/Secondary

MiddleSchool&Below

JuniorCollegeUndergraduatePostgraduate

Thehigherthecitytier,thehighertheaveragehouseholdincome,toppingRMB300,000inbothBeijingandShanghaiin2024,

carmakersbattlingforthe“richman’scarmarket”shouldprimarilytargetbuyersfromlargecities

ThegovernmentworkreportdeliveredonMarch5stipulatedthatoneofthemajortasksforthisyearisto

greatlystimulateconsumption,improveinvestmentreturnsandexpanddomesticdemandonallfronts.

Whenitcomestotheautoindustry,heedingthecallfromthecentralgovernmenttoproactivelyexpand

domesticdemandmeansfindingwaystoencourageautomotiveconsumptionincitieslikeBeijingand

Shanghai.HouseholdincomeofcarbuyersinbothBeijingandShanghaitoppedRMB300,000in2024:

specifically,RMB309,400inBeijingandRMB307,300inShanghai,farmorethanothercities.Butofcourserealitybitesbecauseoftrafficcongestionandenvironmentalprotectionissues,policyand

regulationsremainasthebiggestbottlenecktoautomotiveconsumptioninthetwocities;

Householdincomeofcarbuyersdiffersignificantlydependingoncitytier:theaveragehousehold

disposableincomeofcarbuyersintier1citiesincludingBeijingandShanghaireachedRMB282,600in

2024,farhigherthanothercities,andmorethan65%ofcarbuyersintier1citieshadhouseholdincomeofRMB150,000ormore,typicalofa“richman’scarmarket;”averagehouseholddisposableincomeofcarbuyersinnewtier1citiesfelltoRMB210,900withover55%ofthefamiliesearningincomeof

RMB150,000ormore,whilethatintier2citiesfelltoRMB207,900withnearly55%ofthefamiliesearningRMB150,000ormore,sothesetwocitytierscanalsobeconsidered“richman’scarmarket;”thoseoftier3,4and5felltoRMB189,400,RMB171,500andRMB160,000respectively,eachwitharound40%offamiliesearningRMB150,000ormore;

EventhelowestcitytierhadcarbuyingfamiliesearningonaverageofRMB160,000,whichisvery

conducivetoconsumptionupgrade,andcarmakersmustupgradetheirstrategiesdedicatedtothese

lowercitytierregions.Inadditiontoexpandingtotheselowertiercities,carmakersshouldalsoproactive-lyformulateandoptimizetheirstrategiestogoupmarket,becausemostwealthypeopleliveinlargecitiesandthenewcarmarketisincreasinglybecominga“richman’scarmarket.”

Source:TYRI

AverageHouseholdDisposable

IncomeofChinaPV(NewCar)Buyersfrom

Tier1andNewTier1Cities2024(RMB10,000)

Beijing Shanghai ShenzhenHangzhou Suzhou Qingdao Nanjing Chengdu Hefei NingboGuangzhouChangshaChongqingXi'an

Wuxi WuhanDongguan TianjinZhengzhou

25.31

24.46

23.5123.4923.4823.46

22.0021.68

21.11

20.88

20.3820.2620.23

19.6319.62

18.42

17.03

30.94

30.73

ChinaPV(NewCar)BuyerAverageHousehold

DisposableIncome

byCityTier2024(RMB10,000)

ChinaPV(NewCar)

BuyerHouseholdDisposableIncomeDistribution

byCityTier2024

RMB500K&Above

RMB200K-249.9K

RMB450K-499.9K

RMB150K-199.9K

RMB400K-449.9K

RMB100K-149.9K

RMB350K-399.9K

RMB50K-99.9K

RMB300K-349.9KRMB250K-299.9K

<RMB50K

30

25

20

15

10

5

0

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Tie

Tier4

Tie

Tie

NewTier1

Tier1

Tie

Tier4

Tie

Tie

NewTier1

Tier1

0%

In2024,averagehouseholdincomeofcarbuyersdifferedgreatly

dependingontheiroccupation,withthoseworkinginsenior

managementearningonaverageRMB342,5000,carmakersbattlingforthe“richman’scarmarket”shouldprimarilytargetwhite&goldcollarbuyers

In2024,householdincomeofcarbuyersthatworkinseniormanagementaveragedRMB342,500,

leadingalloccupations.That’sabsolutelya“richman’scarmarket;”thatofcarbuyersthatworkinconsulting,legalandsales&marketingfollowedataroundRMB300,000;carbuyersthatareprivateentrepreneurs,designers,R&Dprofessionalsandmediaprofessionalshaveaveragehousehold

incomeofaroundRMB250,000;thosethatworkinjobsthataretenuredsuchasdoctors,civilservantsandteachersearnonaverageofaroundRMB200,000intheirhouseholds;Bluecollarssuchas

securityguards,ride-hailingdrivers,expresspackagedeliverypersonnel,temporaryworkersand

factoryworkersmostlyhavehouseholdincomeaveragingbelowRMB150,000,ratherlow…It’squiteclearthathouseholdincomeofwhiteandgoldcollarsismuchhigherthanthatofbluecollars;

Householdincomeofcarbuyersdiffersignificantlydependingontheirprimaryoccupation:nearly

80%ofcarbuyersthatworkinseniormanagementhavehouseholdincomeofRMB150,000ormore,thesamepercentageiscloseto70%forR&Dprofessionalsandprogrammers,over60%forprivateentrepreneurs,butonlyslightlyover30%forworkersandbelow20%forfarmers;

Overthepasttwodecadesorso,thesustainedhighgrowthofChina’snewcarmarketwas

primarilydrivenbybluecollarbuyers,butwhiteandgoldcollarbuyershaveclearlybecomethe

primarydrivingforceforcarconsumptioninlargecities,providingasolidfoundationforthehigh

qualitydevelopmentofChina’snewcarmarket.Thebiggestchallengeforcarmakersliesinwhethertheycanshifttheirstrategicplanningandproductroadmapfromonecenteredonbluecollarbuyerstoonegearedtowardwhiteandgoldcollarbuyers.

Source:TYRI

ChinaPV(NewCar)BuyerAverage

HouseholdDisposableIncomeby

PrimaryOccupation2024(RMB10,000)

SeniorManagementConsultant,Analyst,Advisor

Lawyer,LegalAffairsPR,Sales&Marketing,Planning

PrivateEntrepreneurDesigner,Aritst,PhotographerR&D,Programer

Press,Wemedia

Doctor,NurseCorporateBaseManagementClerk,Finance,HR

CivilServantTeacher,SicenceResearchPurchasing,Sales

Retired

Freelance,PartTimeWorker

ExpressPackage&Take-OutDeliveryRide-HailingDriverFarmer

HomeImprovement,Server,Seurity

34.25

31.83mm29.45

27.81

26.27

25.41

24.98

24.32

23.24

22.50

21.54

21.07

20.86

20.41

15.34mm14.93mm14.31mm13.75

12.89

10.57

9.52

ChinaPV(NewCar)BuyerHouseholdDisposableIncomeDistribution

byPrimaryOccupation2024

RMB500K&AboveRMB450K-499.9K

RMB400K-449.9KRMB350K-399.9K

RMB300K-349.9KRMB250K-299.9K

RMB200K-249.9KRMB150K-199.9K

RMB100K-149.9KRMB50K-99.9K<RMB50K

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Farmer

Ride-HailingDriver

Worker

Purchasing,Sales

CivilServant

PrivateEntrepreneur

CorporateBaseManagement

R&D,Programmer

SeniorManagement

In2024,averagehouseholdincomeoffemalecarbuyerstoppedRMB220,000,

muchhigherthanthatofmalecarbuyers,carmakersbattlingforthe“richman’scarmarket”shouldprimarilytargetfemalebuyers

It’srelativelyeasytounderstandthatthe“richman’scarmarket”isdominatedbycarbuyersthathavehigheducationlevels,liveinlargecitiesandhaverelativelyhighincome.Butit’sprobablylessobviousandfeelsabitstrangetosaythatakeytowinningthebattleinthe“richman’scarmarket”isfemalebuyers.Letusexplain.Sofar,manyfemalebuyershavepurchasedsmallEVsliketheBYDSeagullandDolphin.

ThoughtheyretailatsignificantlylowerpricesthanmidsizeSUVsliketheTiguanL,HighlanderandEnvisionthatarepredominantlypurchasedbymalebuyers,householdincomeoffemalebuyersthathavepurchasedthesesmallEVsmayactuallybehigherthanthatofmalebuyers.Becausethefirstcarpurchasedbya

Chinesefamilytypicallysatisfiesthehusbandfirst,andwhenthewifeinthefamilyalsostartstobuycars,itusuallyrepresentsthesecondoreventhirdcarinthefamily,andhouseholdincomeofthesetypeoffamiliesisusuallyaboveaverage.Inotherwords,familiesthathavepurchasedtheRMB100,000DolphinalsohavethecapabilitytopurchasetheRMB200,000+XiaomiSU7.ThatalldependsontheactionsofBYDChairmanWangChuanfuandXiaomiCEOLeiJun;

In2024,averagehouseholdincomeoffemalecarbuyersinChina’snewcarmarketreached

RMB221,900,clearlyhigherthanthatofmalecarbuyers,whichwasbelowRMB200,000.Furthermore,over65%offemalecarbuyershadhouseholdincomeofRMB150,000ormore,meaningthatthefemalecarmarketrepresentsthetypical“richman’scarmarket.”Themalecarmarket,ontheotherhand,representsa“civiliancarmarket”sincelessthanhalfofmalecarbuyershadhouseholdincomeof

RMB150,000ormore;

In2024,femalebuyerscontributedtonearly40%ofChina’scarsales,andthatcontributiontothe

middle-classandwealthycarmarketsisevenhigher.It’sprettyclearthatifyoucanattractfemalebuyers,youwilldoprettywellinthe“richman’scarmarket.”OneofthereasonsthatBYDsalestookofffrom

2021to2024andtopped4millionunitswastheattractivenessofitssmallEVstofemalebuyers,whichaccountedformorethan40%ofBYDsales.SomebrandslikeORAhadearlymoveradvantageinthe

femalecarmarketbutlackedthedrivetopushfurther,andotherbrandslikeMINIandsmartthathadtheadvantageinthefemalecarmarketneverfoundtheirmojo;

IndevelopedmarketsliketheU.S.,EuropeandJapan,carmakers’femalethinkingisusuallylimitedtosales&marketing.ButinChina,ithastoextendfromsales&marketingtoproducts,becausethe

Chinesefemalecarmarketistheworld’slargestfemalemarket,theambitionsoffemalebuyersarecapableofaccommodatingcarmakers’dreams,andfemalebuyersofferastrategicshort-cutforthequalitydevelopmentofcarmakersinChina.ThemiracleoftheXiaomiEVisamiracleoftheglobalautomarket,thecoreforcebehindthismiracleisnoneotherthanfemalebuyers.

Source:TYRI

ChinaPV(NewCar)BuyerAverageHouseholdDisposableIncome

byGender2024(RMB10,000)

22.5 22.0 21.5 21.0 20.5 20.0 19.5 19.0 18.5 18.0 17.5MaleFemale

ChinaPV(NewCar)Buyer

HouseholdDisposableIncomeDistributionbyGender2024

RMB500K&AboveRMB450K-499.9K

RMB400K-449.9KRMB350K-399.9K

RMB300K-349.9KRMB250K-299.9K

RMB200K-249.9KRMB150K-199.9K

RMB100K-149.9KRMB50K-99.9K<RMB50K

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

MaleFemale

ThelargescaleuniversityenrollmentexpansionpolicyinChinaoverthepasttwodecadesorsohavebuiltasolidfoundationforChina’snewcarmarketincreasinglybecominga“richman’scarmarket”

ThereasonwhyChina’snewcarmarketisincreasinglybecominga“richman’scarmarket”and

dominatedbybuyerswithhigheducationlevelsthatliveinlargecities,thatarewhiteorgoldcollarand

thatarefemaleiscloselyassociatedwiththelargescaleuniversityenrollmentexpansionpolicyputinto

placeoverthepasttwodozenyearsorso.Thispolicywentintoeffectattheturnofthecentury.Before

then,Chinahadlessthanamillionfreshcollegegraduatesperyear,anditwasveryrareforChina’s

youthtoobtainhighereducation,thosethatdidaccountedforlessthan5%ofpeersofsameage.Duringthe1980sand1990s,alargeswathofworkerswithloweducationlevelsbecamethelargestemploymentgroupinChina,mostofthemworkedincitiesalongChina’seasternseaboardprimarilyinprocessing

andmanufacturingofgoodsforexport.In2003,aftertheexpansionpolicywentintoeffect,thenumberoffreshcollegegraduatestopped2millionpeople,furtherincreasedtomorethan4millionpeoplein2006

andexceeded11millionpeoplein2023,accountingformorethan70%ofpeerpopulationofthesame

age.Sofarthiscentury,technicianssuchasprogrammersbecamethenextgenerationof“migrant

workers”inChina,typingawayonkeyboardsnightanddayinhighrisesbuiltbythepreviousgenerationof“migrantworkers,”drivingtheinternetandtechnologywaveofChina’ssocietyandhelptransformandupgradeChina’sexportfromonethatiscenteredonlowvalue-addindustrieslikeshoesandsockstoonethatiscenteredonhighvalue-addindustriessuchasautosandships;

IftherewasonepolicythatwouldbeonequalfootingwithChina’sopeningupandreformpolicy,it

wouldtheuniversityenrollmentexpansionpolicy.TheformerexpandedChina’seconomicscale,whilethelatterimprovedthecountry’seconomicquality;

Overthepast20yearsorso,collegegraduatesthatdrovethetransformationandupgradingofChina’seconomyalsobecametheprimarybeneficiaryofthiswave,buildingasolidfoundationforChina’snew

carmarketincreasinglybecominga“richman’scarmarket.”In2024,collegegraduatescontributedover70%toChina’snewcarsales.Evenifcarmakersdon’tthinkthesebuyerscanredefineChina’s “richman’scarmarket,”theyhavetofindoutabouttheirconsumptionpsychesincethey’ve

contributedtosomuchofsales.

Source:TYRI

NumberofFreshCollegeGraduatesinChina1980-2024(10,000people)

No.ofGraduates

ShareofPeersofSameAge

80%

70%

60%

1400

1200

LargeScale

First-Time

Purchase

LargeScale

Additional

Purchase

1000

50%

800

40%

600

30%

20%

10%

0%

400

200

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

0

Source:NationalBureauofStatistics

ChinaPV(NewCar)BuyerDistributionbyEducationLevel2014-2024

PostgraduateUndergraduate

JuniorCollege

HighSchool/SecondaryMiddleSchool&Below

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

UniversityEnrollmentExpansion

ImpactSchematic

Female

High

EducationLargeCity

Level

UniversityEnrollmentExpansion

Others

HighIncome

White/

GoldCollar

In2024,emergingChinesehigh-endbrandsstillhavenottruly

challengedthedominanceofforeignhigh-endbrandslikePorscheandMercedesinthe“richman’scarmarket”

Overthepasttwoyearsorso,sloganssuchas“beingfaraheadornocompetitorsforcarspr