TOKYO SHOW: OEMs optimistic on China long-term prospects
As the world's auto industry considers the ramifications of economic slowdown in the world's largest car market, some OEMs – including VW and Nissan - have expressed upbeat views on long-term prospects for China's vehicle market.
The latest data shows some uptick to the Chinese car market after an inventory-led slowdown earlier in the year. The Chinese government has also just announced tax incentives to stimulate purchases of small cars.
Speaking at the Tokyo Motor Show to Reuters, Nissan CEO Carlos Ghosn said he was not worried about the longer-term potential of the Chinese economy and that he viewed the current slowdown as temporary.
"I think this is a temporary slowdown," Ghosn told Reuters. "The economy in China has been growing so fast, from time to time it needs a period to retune. That's what's taking place today," he said.
"I'm absolutely not worried about the potential of China in the mid- to long term, particularly in the auto industry," he added.
Volkswagen brand CEO Herbert Diess also said in Tokyo that he did not believe the Chinese vehicle market has peaked, but that it is slowing. "The market in China has probably shifted from the big, major cities to smaller areas where there is more demand for mobility and cars," he said.
Some analysts have said that in the long-term China's vehicle market could grow to as much as 30m units a year as motorisation rises and replacement demand grows in response to the rise in the size of China's vehicle parc.