RVs taking nation's roads, parks by storm

Maxus, also the largest manufacturer of RVs in Asia, boasts an intelligent factory producing a wide range of RVs, thus creating a new ecology for domestic vehicle manufacturing. A Maxus representative said, "Reliable quality, comprehensive services and intelligent technologies are our keys to gaining the trust of customers."

Given the reasons for such progress in the RV industry, the representative said that China's economic growth is the fundamental driver. The third consumption upgrade supported by information technology, an aging population and personalized consumption help spur advances as well.

Experts said that alongside GDP growth and increased consumption capacity, China's RV market has a short history and thus a small market base, which can help contribute to rapid growth.

Moreover, the rising tourism industry supported by encouraging policies serves as a large growth engine, boosting market demand and consumption. In turn, the growing market could expand employment and augment fiscal revenues of local governments, helping achieve common development, said Zhang Xiang, a researcher at the Institute of Automobile Enterprise Management and Innovation of the North China University of Technology.

However, there is still a gap between the domestic and Western markets, experts said.

According to Global Market Insight, the global RV market exceeded $70 billion in 2021 and is dominated by North America and Europe.

As the top player, the North American RV market accounted for $25 billion in 2021, with over 600,000 units of RVs sold. Europe came second in market value, with Germany selling the most-106,138 units last year, said the European Caravan Federation.

The two markets also spearheaded ownership, covering 90 percent of global sales (20-24 million units) in 2020, said Beijing-based Intelligence Research Group. RV ownership per thousand people in North America and Europe stands at about 30 and 15, respectively, while that for China is less than 0.2, which suggests significant market growth potential.

It is, in part, because foreign countries like the US have a lower population density which drives the industry, and it is also cheaper for their citizens to travel by RV rather than living in hotels, Zhang said.

Still, more efforts are needed to solve the problems and improve the domestic market.

According to Maxus, challenges include the country's varied landscapes, environments and climates that put greater demand on RV performance.

An immature after-sales service system and insufficient campsite infrastructure also need to be addressed.

Therefore, suggestions include diversifying products, integrating campsites with scenic spots, and building more retail stores.

Moreover, traffic restrictions based on license plate numbers and height limitations also hinder development, experts added.

Yet this problem is beginning to be addressed with supportive policies. The 14th Five-Year Plan (2021-25) for the development of cultural and tourism sectors mentioned self-driving trips several times, and urged the industry to advance in different facets by creating an overall RV-centric tourism industrial chain, building new campsites and tourist centers, and enhancing related manufacturing technologies.

The plan also called for the Ministry of National Resources and the Ministry of Industry and Information Technology to support campsite establishment and facility production, respectively.

Against such a favorable backdrop, companies, be they big or small, could inject new energy into the market as they grow, said CADA.

In short, the industry needs to promote van life culture, infrastructure, industrial policies, production and marketing in sync to achieve sustainable growth, said Bai Wenxi, chief economist at IPG China.

Looking forward, CADA said China's RV market will embrace great opportunities to develop into a larger and industrialized sector, as demand is unleashed and the industry is given continuous support.

"The market is promising thanks to positive trends unfolding in many fields. Youngsters, especially Gen Z, will dominate consumption. Products will be diversified and the supply chain improved. The new energy vehicle market will provide opportunities for RV market growth. And Internet+ will promote van life culture more deeply and quickly," said the Maxus representative.