Report of Chinese Automobile Industry under International Financial Crisis, 2009
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The International financial crisis in 2008 has seriously affected the global automobile industry. Four largest automobile companies lost their previous prosperity and looked for breakout to save them. There is no exception for Chinese automobile industry, which is still in its rising period.
In 2008, the yields of Chinese automobile were 9. 3451 million, increased by 5. 2% of last year. But the growth speed decrease by 16. 8% of last year. The total automobile sales volumes reached to 9. 38 million, rising by 6. 7% compared with 2007, but the growth speed declined by 15% compared with 2007. There was a sharp reduction in the profits of Chinese automobile manufacturers.
In 2008, FAW Volks, Shanghai Volks and Shanghai GE stood the top three sales volumes respectively in Chinese automobile market. However, the independent brand, such as Chery, dropped in market shares, totally accounting for only about 25. 92% in the whole automobile sales volumes.
In order to promote the development of Chinese automobile manufacture under international financial crisis, Chinese government approved the Revitalization Plans of Automobile Industry in January of 2009. The major contents concluded: reducing the purchase tax of passenger automobiles with low emissions; offering purchase subsidy policy to specific targets so as to promote automobile consumption; advancing Mergers and acquisitions among automobile industry; supporting Chinese automobile manufacturers to develop independent innovation and technical reform; driving the development of electric powered automobiles and its crucial accessories; supporting Chinese automobile manufacturers to develop independent brands; speeding up the export base construction of automobile and accessories.
Compared with the international automobile patterns, China is getting to be the manufacture center and cost center. Under the existing circumstances, Chinese automobile manufacture has an advantage of low cost compared with the developed countries. However, various costs are rising in Chinese automobile industry. As far as accessories are concerned, China has no advantage in the high quality accessories. The medium quality accessories have been developed in recent years. China has to compete with India and Vietnam in the low quality manufacture, such as batteries and tires etc.
From the part of Chinese automobile industry, international financial crisis is not only challenges but also opportunities. Chinese automobile market has a huge development potential in the fields of Mergers and acquisitions, accessories and new energy automobiles.
The analysts of our company cooperated with some experts in Chinese automobile industry to write this report, with the purpose of helping the domestic and international persons to tide over, discover opportunities in Chinese market, and cope with the challenge from international financial crisis.Readers can obtain more following information in this report:
- Productions and Sales of Chinese Automobile Industry
- Imports and Exports of Chinese Automobile Industry
- Favorable Elements for the Development of Chinese Automobile Market
- Unfavorable Elements for the Development of Chinese Automobile Market
- Prediction on the Sales Volumes of Chinese Automobile, 2009-2012
- Influences of International Financial Crisis on the Local Automobile Manufacturers in China
- Influences of International Financial Crisis on the Foreign Funded Automobile Manufacturers in Chinese Market
- Import and Export Trends of
- Sales Targets of Major International Automobile Enterprises in China, 2009
- Short, Medium and Long Term Influences of Revitalization Plans of Automobile Industry on Chinese Automobile Industry
- Subsistent Opportunities of Chinese Automobile Industry under International Financial Crisis.
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