The automobile industry in China has grown at a phenomenal rate and the number of vehicles the country is exporting to emerging countries has grabbed the attention of global automakers.
Auto exports in China went up in the initial ten months of 2007, as per data released by the Commerce Ministry. The Ministry says that 413,500 completely assembled vehicle units, high by 64% against same period in 2006, were exported by China, including buses, cars, and trucks during the period. Total sales of vehicle exported reached $4.80 Billion, a YOY growth of 117%, reported Associated Press.
Majority of auto exports in China were sent to emerging countries like Iran, Russia, and Kazakhstan. As per state media reports, 70% of auto exports in China in the initial six months of 2006 were meant for Europe and Asia with the highest share going to Russia, followed by Kazakhstan and Iran.
Russia has evolved as a major overseas market of China's auto export and for three successive years, it has been seen that China’s auto export in Russia has increased so swiftly.
Despite the fact that automakers in China are trying to broaden their business in North America and Europe, so far, these makers have exported economy and compact passenger models to emerging countries only. In December first week, Geely Group Co., the Chinese automaker, declared plans to make an assembly plant in Subic Bay industrial zone in the Philippines. Similarly, FAW Group Corp. signed a joint undertaking with Grupo Salinas (Mexican conglomerate) for an assembly plant in central Mexico.
"Developing overseas markets is a realistic strategy for Chinese own-brand automakers, facing intensifying competitive pressures at home”, Zhang Ji, official at Commerce Ministry said in a statement published by Associated Press.
A few industry experts are of the view that while China’s vehicle exports account for a comparatively small part of Asia’s overall export pie, the growth rate of China’s export expansion and the potential for any future growth have drawn the attention of both its competitors and its export cooperation partners.
According to a Research Analyst at RNCOS “The rapid growth rate of China’s passenger car market has grabbed the attention of global automakers and suppliers and has pushed them to set up or expand their activities in the Middle Kingdom. And the anticipated surge of economical Chinese passenger car exports in coming years has left dealers and distributors from across the world lining up for there to sell Chinese cars in their native countries.”
Related Market Research Reports:
China Automobile Industry Forecast (2006-2010)
Indian Automobile Sector - A Booming Market
Czech Republic Automobile Sector
