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China?s Auto Exports Witnessed 58% Growth during Jan-Feb 2010
Apr 29, 2010

As overseas markets have revived from the 2009 economic slowdown, China’s auto exports market has gained impetus, and will continue the trend in future as well.

According to the statistics released by China Association of Automobile Manufacturers, China’s auto exports in Jan-Feb 2010 hit 66,100 Units, up 58% in comparison to the first two months of 2009, as per the news published by People’s Daily Online.

According to these statistics, the overall export value in the first two months of the year reached $871 Million, a growth of over 23%.

The revival of economic meltdown in the overseas market is one of the major reasons of the country’s auto export gaining impetus. The auto export markets of China, like Africa, Europe, etc., are recuperating from the meltdown phase, as a result of which, consumers have started to purchase automobiles.

As the vehicles are available at low costs, China enjoys competitive advantages compared to other countries. The end cost of vehicles is low because the cost of manufacturing pick-up vehicles and trucks are lower in the country, partly because labor costs are lower here. Also, as the Chine auto market is primarily oriented to the developing nations, inexpensive vehicles are popular among the consumers who cannot afford to possess expensive, luxurious vehicles.

Moreover, with clear-cut indications of rebounding showing in auto export sector of China, a number of Chinese automobile manufacturers have ambitious strategies. For instance, BYD Co., China's top battery and electric automaker has a high export target to achieve. Wang Jianjun, sales general manager of the company, revealed that the company aspires to export 16,000 new energy and oil-fueled cars.

Although the growth is likely to continue in the years to come, the Chinese auto export industry has also a few challenges to face. “China Automobile Sector Forecast to 2012”, a market research report by RNCOS, has highlighted one of the challenges, that is, in coming years, the currency of China will continue appreciating. And, as the US is one of the chief export destinations for China’s automobiles, country’s exports may face a negative impact in future.

According to a Research Analyst at RNCOS, “The auto export market of China has been posting considerable growth since past few years. Industry consolidation, coupled with increasing operating margins of auto manufacturers operating in the country, will further decrease auto-manufacturing costs. This will eventually translate into sustainable growth in the country’s auto export in future also.”

Related Market Research Reports:
Brazil Automobile Forecast to 2013
Indian Automobile Sector Analysis
Hybrid Car Market Forecast to 2012