In the first 10 months of this year, China exported more vehicles than it imported – a milestone for the local industry and the country’s ambitions to become a leading player in the global car market, the Financial Times (FT) said.
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Citing China’s Ministry of Commerce, the paper said vehicle exports to the end of October rose to 135,000 units, up 134% from the same period last year, while imports slowed 12% to 128,000.
However, analysts told the FT that these figures are still relatively low compared with other low-cost producing countries and that in value terms the balance is still skewed firmly towards imports – most of China’s exports go to countries such as Syria, Vietnam and Algeria, while a large proportion of imports are luxury brands.
The Financial Times said the latest numbers suggest overseas demand for Chinese vehicles, particularly cheap trucks, is strong while domestic production of higher-end car models is gradually replacing imports. Some analysts reportedly say this trend will continue through to the end of next year.
CSM Asia director Yale Zhang told the paper: “Exports will surely continue to increase.” He reportedly said the quality of China’s small to medium-sized trucks was improving and most ended up in the Middle East, south-east Asia and Africa.
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By GlobalDataPick-ups and light truck types accounted for 59% of exports in this period, while passenger sedans made up just 16% of the total, the paper said, citing the ministry data.
Zhang told the Financial Times that some domestic-made trucks sold for between RMB50,000 ($US6,200) and RMB70,000, only a third of the price of a US-made truck.
He reportedly predicted China would start exporting mass quantities of cheap passenger cars in 2007, when domestic carmaker Chery is expected to start marketing models to US buyers. “The future is America (for Chinese vehicle exports),” he told the paper.
The Financial Times noted that, despite the aspirations of China’s carmakers, many of which have partnered with global multinationals to make cars for domestic consumption, industry analysts and government officials are concerned about a looming problem with overcapacity.
