A New Geographical Cluster View on Passenger Vehicle Purchasing in Chinese Cities

Abstract

Abstract:It is important to understand urban auto markets from a spatial perspective. Specifically, the question of how to simplify and visualize the relatedness of the complicated urban markets arises. Based on the concept of 'product space', this research explores the similarity between Chinese cities and identifies the city clusters using data of automobile sales in 2012. A city's automobile market is shared by different manufacturers and the proximity between two cities is evaluated based on the similarity or relatedness in the structure of the two markets. The spatial structures of the 'city clusters' derived from the proximities of automobile markets among cities are mapped, examined, and interpreted. The analysis indicates that cities with higher proximity tend to be similar. According to the intercity proximity index, four geographical city-clusters are identified: the Southeast developed city-cluster, North China city-cluster, Northeast city-cluster, and West city-cluster. Cities in the same cluster tend to share many common characteristics while cities in different clusters exhibit obvious variances, especially in terms of economic status and dominant automakers.