Latest News of China Auto Market
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Beijing - Chinese New Year holidays ahead, as the rate of the country’s largest political party, buying home-improvement in the southwest of Beijing Huaxiang car market. Some people want to drive home their Year of the Ox coming to an end of the fiscal year, signs of the success of a new car, while others in order to trade before the new year, tiger, February 14 began.
Lu Guo’s 50-year-old retired railway official, to help a friend’s car shop. Their eyes a contrast Geely sedan, a popular Chinese brand to have an attractive price tag - 39.8 thousand yuan, about $ 5,800 U.S. dollars - and the qualifications of small engine cars of government tax breaks.
“I like the BMW, but I never can not afford,” he says Lu, who bought the first car a year ago. Geely’s “look and feel looks good, but do not use fuel.”
Slightly higher than from China’s auto market news 10 years off, it is an enviable place: it overtook Japan to become the world’s largest auto market, the United States last year. Turmoil by the end of Detroit’s dominance of the automotive industry more than a century. However, a growing number of challenges, the Mainland auto makers, as well as foreign players - including GM and Ford - who is doing business here, the rise of China’s auto market reputation.
Growth in China’s automobile industry, nearly 50%, the Government launched the car last year, incentive dollars, or about five times the size of the U.S. auto industry for cash - clunkers plans 15 billion dollars. But analysts question is how most of the growth in the Chinese market is sustainable. Manufacturers are trying to appeal here, in their own market to consumers. With our brand of quality, while improving, still lag behind foreign banks.
Now, “people buy (China) because of its low cost, said:” Klaus Paur, TNS’s director of regional studies international automobile. “But as consumers become increasingly demanding, the Hong Kong Chinese Manufacturers can not survive, if not improve their own quality.”
The industry’s struggle is symbolic of the major issues facing China as it tries to stir up domestic consumption. China’s economy is driven by exports and investment in infrastructure rather than consumption. The Government is trying to change this situation.
Of its economic stimulus package of some of the measures, are doing the trick: Expenditure is as big as cars and household appliances such as surge in high-value commodities. However, experts warn that long-term growth of consumer spending, China will have to be more active and effective, the court 1.3 billion inhabitants.
“You can provide incentives, as well as sales of the product is very good, but everything?” UBS said China’s chief economist Wang Tao. “The relative weakness of consumption can not be resolved, (one time) rewarding. There must be a (these sectors) growth paradigm shift.”
Lu, China economist at Bank of America, Merrill Lynch determined that our government need to provide more of a social safety net - such as retirement and medical benefits - to encourage people to save less and spend more. “If you want to convince people to consumption, you need to make sure people do not worry about the future, they said:” Road.
Traditionally, China has also saved a lot, because they lack a strong retirement and medical benefits. Although China recently proposed to improve the government’s pension and health care, which is more economic, social safety net remains weak, to maintain a high savings rate. Chinese families save about 28% of disposable income than 5% of U.S. consumers, it is estimated Alaistair Chen Moody’s Economy.com economist, deputy.