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China ? Automobile Exports Rose 52% in Q1 2010
May 10, 2010

The Chinese automobile exports rose 52% to 105,600 Units in the first quarter of 2010 against a year ago on the back of economic recovery and low-priced vehicles.

According to the China Association of Automobile Manufacturers (CAAM), the Chinese automobile exports in the first quarter of 2010 jumped to 105,600 units, an increase of 52% from 69,700 units in the corresponding period a year earlier, as reported by Trading Markets.

Out of the total exports, China had exported 66,100 units in the opening two months of 2010 (January and February) and the remaining 39,500 units were exported in the month of March, a monthly rise of 49% and annual increase of 78%.

In March 2010, commercial vehicles exports stood at 19,700 units, an increase of 45% over the previous month and 39% against a year ago. Passenger cars exports surged to 19,800 units, up 52% over the previous month and 147% against a year ago.

The top five automobile companies were Chery, Beijing Automobile Works Co., Ltd., Chongqing Chang'an Automobile Company Ltd., Dongfeng Motor Group Co. Ltd. and Great Wall Motor Co., Ltd. with total contribution of 56% to the total export.

The main reason for upsurge in the Chinese automobile exports is the economic recovery from slowdown, especially the European countries that form the major exporting nations for China.

Moreover, China enjoys the competitive edge of producing low cost vehicles over the other countries. The production cost of pick-up vehicles and trucks is lower in China compared to other countries owing to low labor cost. As the Chinese automobile industry is more inclined toward developing countries, low-priced vehicle are popular among those people who can’t afford expensive vehicles.

Although the industry is expected to continue to move on the growth track, there are still many challenges that need to be addressed. RNCOS, a leading market research firm, has highlighted some of the challenges in its research report “China Automobile Sector Forecast to 2012.” One of the challenges is the appreciation in domestic currency in coming years. Since the US represents one the key exporting destinations for China, it will affect the performance of the automobile industry.

According to Research Analyst at RNCOS, “There are some indications of rising auto exports from China, but it is significantly below the peak level in 2008. In order to achieve the previous growth, the Chinese automobile manufacturers should focus on the quality as the Chinese-brand vehicles still lack competitiveness.”

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