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After modest sales gain in 2012, carmakers turn bullish again
By Lu Nengneng> |
January 22, Tuesday
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Print Edition
Print Edition
DESPITE a rough patch amid cooling consumer demand, carmakers in China managed to end the year on a modestly upbeat note.
Sales in 2012, which started with a steep decline in January, rose 4.3 percent, edging up from the 2.5 percent growth a year earlier. Still, only a third of the 18 major carmakers in China achieved sales targets.
In what looks increasingly like a fierce zero-sum game, many automakers are maintaining a brave face.
The China Association of Automobile Manufacturers is forecasting 7 percent growth in the vehicle market this year and an 8.5 percent increase in the passenger car segment, which ended 7 percent up last year.
Shanghai General Motors, which sold the most passenger cars in China last year, has set a 2013 sales target of 1.45 million units, up 4 percent from last year.
Second-ranking FAW Volkswagen said it's aiming for a 10 percent increase to exceed 1.5 million deliveries.
Closely behind is Shanghai Volkswagen, targeting record 1.42 million units.
Japanese carmakers have been coy about discussing their expectations, following the severe sales slump last year.
Archrivals from South Korea, which grabbed market shares from Japanese counterparts, are poised to extend their gains. Dongfeng Yueda Kia said it expects 8.3 percent growth this year, with deliveries of 520,000 units, while Beijing Hyundai, eager to secure its fifth position in the market, expects sales to grow 16 percent to exceed 1 million units for the first time.
Ambitious targets
The most ambitious growth targets for this new year come from domestic carmakers, whose combined market share fell 0.4 percentage point last year.
Both Huatai Automobile and Guangzhou Automobile said they expect their sales of their wholly owned brands to double, to 100,000 units and 65,000 units, respectively. Dongfeng Automobile is aiming for a two-thirds increase in sales of its Fengshen brand, to 100,000 units.
For those with higher sales volumes, growth rates are expected to be much more modest.
Great Wall is aiming for a 12 percent increase with 700,000 unit deliveries, while Geely has set its sights on selling 560,000 units, for a 16 percent increase.
Domestic manufacturers are basing their optimism on new model launches, but have they really thought through the challenges of fierce competition in a slower market?
Rao Da, secretary-general of the China Passenger Car Association, noted that the possibility of government intervention to contain auto sales growth rate to no more than 5 percent this year amid the stubborn problems of increased traffic congestion and emissions pollution.
And Shen Rong, deputy secretary-general of the China Car Dealership Association, has warned of the risk of oversupply as annual car-production capacity in China creeps toward 35 million units.
"Compared with the 3 percent to 5 percent growth of the past two years, the industry has surplus power to some extent," said Shen.
Sales in 2012, which started with a steep decline in January, rose 4.3 percent, edging up from the 2.5 percent growth a year earlier. Still, only a third of the 18 major carmakers in China achieved sales targets.
In what looks increasingly like a fierce zero-sum game, many automakers are maintaining a brave face.
The China Association of Automobile Manufacturers is forecasting 7 percent growth in the vehicle market this year and an 8.5 percent increase in the passenger car segment, which ended 7 percent up last year.
Shanghai General Motors, which sold the most passenger cars in China last year, has set a 2013 sales target of 1.45 million units, up 4 percent from last year.
Second-ranking FAW Volkswagen said it's aiming for a 10 percent increase to exceed 1.5 million deliveries.
Closely behind is Shanghai Volkswagen, targeting record 1.42 million units.
Japanese carmakers have been coy about discussing their expectations, following the severe sales slump last year.
Archrivals from South Korea, which grabbed market shares from Japanese counterparts, are poised to extend their gains. Dongfeng Yueda Kia said it expects 8.3 percent growth this year, with deliveries of 520,000 units, while Beijing Hyundai, eager to secure its fifth position in the market, expects sales to grow 16 percent to exceed 1 million units for the first time.
Ambitious targets
The most ambitious growth targets for this new year come from domestic carmakers, whose combined market share fell 0.4 percentage point last year.
Both Huatai Automobile and Guangzhou Automobile said they expect their sales of their wholly owned brands to double, to 100,000 units and 65,000 units, respectively. Dongfeng Automobile is aiming for a two-thirds increase in sales of its Fengshen brand, to 100,000 units.
For those with higher sales volumes, growth rates are expected to be much more modest.
Great Wall is aiming for a 12 percent increase with 700,000 unit deliveries, while Geely has set its sights on selling 560,000 units, for a 16 percent increase.
Domestic manufacturers are basing their optimism on new model launches, but have they really thought through the challenges of fierce competition in a slower market?
Rao Da, secretary-general of the China Passenger Car Association, noted that the possibility of government intervention to contain auto sales growth rate to no more than 5 percent this year amid the stubborn problems of increased traffic congestion and emissions pollution.
And Shen Rong, deputy secretary-general of the China Car Dealership Association, has warned of the risk of oversupply as annual car-production capacity in China creeps toward 35 million units.
"Compared with the 3 percent to 5 percent growth of the past two years, the industry has surplus power to some extent," said Shen.
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