Despite a sharp fall to car sales in the month of January, the Chinese auto industry’s trade body, CAAM, is forecasting 8% growth to the Chinese vehicle market in 2012.
Dong Yang, standing vice chairman and secretary of CAAM, has told the local media that the local Chinese economy will be strong enough to ensure growing incomes and a ‘long period of stable growth’ for the automotive sector in China.
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After the dampening down to vehicle sales in China in 2011 led by the government’s efforts to slow the economy, Don Yang sees 2012 as seeing a return to ‘normal’ growth with vehicle sales around 20m (8% ahead of 2011). Of that 20m, Don Yang estimates car (passenger vehicle) sales of 14.5m units (around 9% up on 2011).
Domestic brands struggled in China’s car market in 2011, with joint-venture and premium brands commanding a growing share.
Mr Dong suggested that the competition for the domestic brands inside China has intensified in recent years as joint-venture brands have entered the ‘low-end’ of the market. He said that without a ‘special policy’, domestic brands would likely continue to struggle in the Chinese marketplace this year because they are seen as uncompetitive versus international brands.
See also: Management briefing: 2012’s growing vehicle markets
