Domestic market challenges spur producers' export drive
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E-mail China Daily, May 10, 2012
The Chinese vehicle market's return to single-digit growth after a boom of more than two years is posing difficulties for domestic automakers, whose products are perennially at a competitive disadvantage with foreign brands.
Many domestic makers are maneuvering for position in the global market to offset tougher conditions at home.
The China Association of Automobile Manufacturers said on Wednesday that in the first four months of the year, vehicle sales by domestic makers fell 5.2 percent year-on-year to 2.14 million units. Their market share of 42.3 percent fell by 3.2 percentage points.
The figures show that Chinese vehicle producers "are still facing challenges in the domestic market", said Zhu Yiping, assistant secretary-general of CAAM.
As a result, many vehicle makers, including Great Wall Motors, Zhejiang Geely Group Holdings and Chery Automobile Co, plan to expand abroad to use their production capacity as they lose market share at home.
Statistics from CAAM show that in April, vehicle exports set a new monthly record of 87,400 units, up 29.5 percent year-on-year. Exports in the first four months rose 23.8 percent to 278,900 units.
Last year, exports grew 49 percent, far above the weak expansion of 2.5 percent for the country's overall auto industry.
Great Wall, which has already entered markets in Russia, South Africa, Australia and Chile, plans to export 100,000 vehicles this year and 300,000 by 2015.
The nation's leading vehicle exporter, Chery Automobile Co, said on Tuesday that it hopes to see exports hit 200,000 units this year, from a record 160,200 in 2011.
Dongfeng aims for exports of 300,000 vehicles by 2016.
