BIZCHINA> Foreign Automaker
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BIZCHINA> Foreign Automaker
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Carmakers vie for China sales amid global slump
(Agencies)
Updated: 2009-04-17 14:55 While the outlook for Chinese car sales will depend largely on what other stimulus measures the government offers, analysts point to a consensus of around a 10 percent rise this year. "(China) is the only healthy large car market in the world right now," said Graeme Maxton, a Europe-based auto analyst. "And that means it's going to get far more attention. Everything else is collapsing. The only place you can grow is China," he added, while warning that that would also mean fiercer competition. Research firm J.D. Power has forecast an 8.2 percent fall in global auto sales this year as demand tanks in the United States, Japan, Russia and most other markets. The Shanghai auto show will open to the media on April 20 and to the public for a week from April 22. Pulling out the stops Chinese car sales grew 10 percent from the year before to a record in March, extending gains from the previous month fuelled by the introduction of lower taxes on cars with engines smaller than 1.6 litres. While no sweeping incentives have been directed towards hybrids and other fuel-saving cars, many Chinese automakers will join their foreign rivals in showcasing such advanced technologies to demonstrate they have the means to compete when environmental regulations are eventually tightened. Top Chinese carmaker SAIC Motor will display an electric car developed in-house as well as a hybrid version of its Roewe sedan, expected to hit showrooms next year. Privately held Chery Automobile, best known for its low-end QQ model, is also due to display vehicles in the hybrid and pure electric car segments, which BYD Auto, a unit of battery maker BYD Co is keen to dominate. "It seems that both local and foreign car makers are eager to tap the potential of clean vehicles even though government subsidies have not covered private buyers so far," said Zhang Xin, an analyst with Guotai Junan Securities. Perhaps more staggering is the sheer number of prototypes that will be on display from some of the Chinese brands. Hong Kong-listed Geely (0175.HK) will unveil no fewer than 22 new models, mostly under three new upcoming brands: Gleagle, Emgrand and Shanghai Englon. Thrown into the lot will be a Formula One concept car. Geely will also be joined by Chery and Great Wall Motor, among others, in unveiling mid- to high-end sedans as local brands attempt to move upmarket. (For more biz stories, please visit Industries)
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