China top spot for auto investment
By Lu Nengneng |
January 11, 2013, Friday
|
Print Edition
Print Edition
GLOBAL automakers consider China as their top choice for investment because of its huge domestic demand and export opportunities, a KPMG survey showed yesterday.
China was favored by 70 percent of respondents as the top investment destination over other BRIC countries, according to the auditing firm's 14th annual global auto executive survey among 200 respondents in 31 countries and regions.
For the other BRIC countries, India had 63 percent support, Russia 54 percent, and 48 percent chose Brazil. The survey also showed that 94 percent believed that China's domestic car sales will continue to grow, driven by the rising middle class and growing urbanization.
"China remains a highly attractive market due to its long-term growth potential. It is no surprise that some automakers are placing big bets in China, ahead of other BRIC and TRIAD markets (which include Japan, Western Europe and North America)," said Andrew Thomson, Asia Pacific head of automotive and a partner at KPMG China.
According to the survey, four Chinese automakers may rank among the top 10 companies in glob
al market share over the next five years, and the BRIC markets may account for nearly half of worldwide vehicle sales by 2018.
But the report also pointed out concerns over how fragmented the auto industry is structured in China, especially when it faces overcapacity risks, which 26 percent of the respondents rated as high or very high compared with 25 percent which viewed the other BRIC markets this way.
Vehicle sales may rise 5% in 2013
China's auto sales, including passenger cars and commercial vehicles, may rise around 5 percent this year to reach the milestone of 20 million units, supported by an economic rebound and rising incomes, an official said yesterday.
The expected expansion may mirror the performance of last year when total deliveries of vehicles rose "4 to 5 percent" in the country to about 19 million units, according to Ye Shengji, deputy secretary general of the China Association of Automobile Manufacturers. The state-backed body will release a detailed report on China's December auto sales today.
China was favored by 70 percent of respondents as the top investment destination over other BRIC countries, according to the auditing firm's 14th annual global auto executive survey among 200 respondents in 31 countries and regions.
For the other BRIC countries, India had 63 percent support, Russia 54 percent, and 48 percent chose Brazil. The survey also showed that 94 percent believed that China's domestic car sales will continue to grow, driven by the rising middle class and growing urbanization.
"China remains a highly attractive market due to its long-term growth potential. It is no surprise that some automakers are placing big bets in China, ahead of other BRIC and TRIAD markets (which include Japan, Western Europe and North America)," said Andrew Thomson, Asia Pacific head of automotive and a partner at KPMG China.
According to the survey, four Chinese automakers may rank among the top 10 companies in glob
al market share over the next five years, and the BRIC markets may account for nearly half of worldwide vehicle sales by 2018.
But the report also pointed out concerns over how fragmented the auto industry is structured in China, especially when it faces overcapacity risks, which 26 percent of the respondents rated as high or very high compared with 25 percent which viewed the other BRIC markets this way.
Vehicle sales may rise 5% in 2013
China's auto sales, including passenger cars and commercial vehicles, may rise around 5 percent this year to reach the milestone of 20 million units, supported by an economic rebound and rising incomes, an official said yesterday.
The expected expansion may mirror the performance of last year when total deliveries of vehicles rose "4 to 5 percent" in the country to about 19 million units, according to Ye Shengji, deputy secretary general of the China Association of Automobile Manufacturers. The state-backed body will release a detailed report on China's December auto sales today.
- 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.
