China still top auto market even as sales gain falls to least in 13 years
By Jin Jing |
January 13, 2012, Friday
|
Print Edition
Print Edition
CHINA retained its crown as the world's largest auto market for a third consecutive year in 2011 despite the growth in sales falling to the least in 13 years.
But the China Association of Automobile Manufacturers estimated full-year sales for this year to grow 8 percent to around 20 million units, fueled by the low vehicle population, people's growing income and solid demand from second-tier cities.
Industry analysts believe the central government may launch stimulus to drive higher growth this year in the Chinese market, which grew for three years.
Automakers sold a combined 18.5 million vehicles in China last year, up 2.5 percent from a year earlier, said CAAM yesterday. That compared with 12.7 million vehicles sold in the US market, an annual rise of 10 percent, helped by an improving economy and higher demand from Americans after two years of contraction. China's sales growth in percentage term for 2011 actually trailed the US for the first time in the past 14 years.
The Chinese growth also fell sharply from a 32 percent surge in 2010 after the central government ended tax cuts on fuel efficient cars and economic growth eased.
"It's natural to see the sales growth moderate after the government stimulus ended," said John Zeng, analyst from research firm LMC Automotive in Shanghai. "The slowdown was mainly dragged down by minivans while the higher-value car segment was less affected."
Full-year passenger car sales rose 5.2 percent last year to 14.5 million units, down from 33 percent in 2010, according to CAAM.
Domestic customers also bought fewer pickups and trucks as economic uncertainties delayed construction projects and affected transport. Commercial vehicle sales fell 6.3 percent to 4.03 million units.
LMC estimated passenger car sales in China may grow 10 percent this year and those of commercial vehicles to gain 6 percent.
"As the central government targets to achieve stable economic growth with prudent macroeconomic policies and tight control on the housing market, there is a high possibility for a new round of incentives this year to boost vehicle consumption, particularly in second- and third tier-cities," said Zeng.
General Motors reported record sales in China last year, up 8.3 percent annually to 2.55 million units.
Chery Automobile said its China sales fell 4 percent to 643,000 units last year.
Chinese-branded passenger car sales fell 2.6 percent last year, accounting for 42 percent of the total. Their market share fell 3.37 percent from a year earlier, CAAM data showed.
"The Chinese market is still a growing market," said Zhong Shi, independent auto analyst. "Even if the growth moderated, the market volume is still sizable and bigger than that of the United States. China will be at the center in the strategies of major global auto giants."
Volkswagen said it would invest 14 billion euros (US$18 billion) on the Chinese mainland by 2016.
GM's China president Kevin Wale earlier predicted that Chinese auto demand may expand 7 to 10 percent this year, led by passenger cars, with sales of commercial vehicles seen to grow 5 percent, according to Bloomberg News.
GM plans to introduce more than 60 new and upgraded models between 2011 and 2015.
But the China Association of Automobile Manufacturers estimated full-year sales for this year to grow 8 percent to around 20 million units, fueled by the low vehicle population, people's growing income and solid demand from second-tier cities.
Industry analysts believe the central government may launch stimulus to drive higher growth this year in the Chinese market, which grew for three years.
Automakers sold a combined 18.5 million vehicles in China last year, up 2.5 percent from a year earlier, said CAAM yesterday. That compared with 12.7 million vehicles sold in the US market, an annual rise of 10 percent, helped by an improving economy and higher demand from Americans after two years of contraction. China's sales growth in percentage term for 2011 actually trailed the US for the first time in the past 14 years.
The Chinese growth also fell sharply from a 32 percent surge in 2010 after the central government ended tax cuts on fuel efficient cars and economic growth eased.
"It's natural to see the sales growth moderate after the government stimulus ended," said John Zeng, analyst from research firm LMC Automotive in Shanghai. "The slowdown was mainly dragged down by minivans while the higher-value car segment was less affected."
Full-year passenger car sales rose 5.2 percent last year to 14.5 million units, down from 33 percent in 2010, according to CAAM.
Domestic customers also bought fewer pickups and trucks as economic uncertainties delayed construction projects and affected transport. Commercial vehicle sales fell 6.3 percent to 4.03 million units.
LMC estimated passenger car sales in China may grow 10 percent this year and those of commercial vehicles to gain 6 percent.
"As the central government targets to achieve stable economic growth with prudent macroeconomic policies and tight control on the housing market, there is a high possibility for a new round of incentives this year to boost vehicle consumption, particularly in second- and third tier-cities," said Zeng.
General Motors reported record sales in China last year, up 8.3 percent annually to 2.55 million units.
Chery Automobile said its China sales fell 4 percent to 643,000 units last year.
Chinese-branded passenger car sales fell 2.6 percent last year, accounting for 42 percent of the total. Their market share fell 3.37 percent from a year earlier, CAAM data showed.
"The Chinese market is still a growing market," said Zhong Shi, independent auto analyst. "Even if the growth moderated, the market volume is still sizable and bigger than that of the United States. China will be at the center in the strategies of major global auto giants."
Volkswagen said it would invest 14 billion euros (US$18 billion) on the Chinese mainland by 2016.
GM's China president Kevin Wale earlier predicted that Chinese auto demand may expand 7 to 10 percent this year, led by passenger cars, with sales of commercial vehicles seen to grow 5 percent, according to Bloomberg News.
GM plans to introduce more than 60 new and upgraded models between 2011 and 2015.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
