Blogs

Home | Blogs
Chinese Imported Automobile Industry to Grow 20% in 2008
Mar 14, 2008

Chinese imported automobile industry is consistently growing and CTCAI has predicted that it will grow by 20% this year, an alarming situation for native car manufacturers.
 
China Trading Center for Automobile Import (CTCAI) has predicted that import of cars will exceed 360,000 Units in 2008, a YOY increase of 20%, as reported by chinatradeinformation.net.
 
As per the findings of CTCAI, Sports Utility Vehicles, or SUVs, formed the bulk of imported cars and they will remain the most popular imported cars in Chinese market. Official figures released for first eleven months of 2007 (January – November) showed that an annual growth of 65% was recoded in the volume of imported SUVs, which was equal to 126,659 Units.
 
The US, Japan, Republic of Korea, and Germany are the main countries from where China imports maximum number of cars. Out of these, Germany contributes 42% of sedans while 48% SUVs are bought from Japan. High economic growth of China is attributed for these magnificent figures.
 
Healthy economic growth and rise in personal disposable income has improved the affordability of imported vehicles for Chinese people. Consequently, there is an outburst in the demand for imported vehicles in the domestic market and this is leading the industry on the right track.
 
Moreover, new models are catching the eyeballs of Chinese who are unable to suppress the temptations of buying them. Banks are also supporting the Chinese by offering easy car loans at reasonable rate of interest. The government is also taking necessary measures and has significantly declined taxes by enabling private car duties to be decided through open public tenders. These factors are collectively playing crucial role in increasing Chinese auto import.
 
Considering China will host the 2008 Beijing Olympics, auto dealers of the country are placing orders for more imported cars as foreigners prefer to travel and drive imported cars.
 
A Research Analyst at RNCOS said, “China’s automobile import is rising, indicating good economic growth in the country. But it has become a cause of worry for native auto manufacturers because import has devaluated domestic cars. So domestic auto manufacturers are required to draw strategic plans and launch new models featuring imported cars traits and revise their pricing system. If consumers get cars parallel with imported cars in features at low price, then they will definitely opt for those cars.”

Related Market Research Reports:
Czech Republic Automobile Sector
Brazil Automobile Industry till 2010
Booming Russian Automobile Sector