October 2005 management briefing
After the slump in the Chinese vehicle market of recent years, there are signs that the world’s largest automotive growth market opportunity is once again swinging into an accelerated growth phase. The market is being ignited by manufacturer actions such as price cuts on selected models and that is reflected in differing company and market segmentation performances. This briefing examines key developments in the Chinese vehicle market and their implications for vehicle makers, identifying winners and losers. As the Chinese auto industry seeks to modernise in line with international standards, there is also a section on regulatory changes, including an examination of a proposed ‘gas-guzzler’ tax and amendments to rules governing minicars. The briefing also considers the burgeoning export ambitions of the largest Chinese domestic makers and provides a manufacturer-by-manufacturer guide to current performance and prospects.