Automakers strengthen weakness via big adjustments in adverse situation in China

Due to the macroeconomic growth rate slowing down in China, auto industry in the country entered a period of minimal growth, with sales growth shrinking and market pressures increasing. In order to tackle the adverse situation, China's domestic automakers and joint-ventures are implementing big policy adjustments.

For China’s domestic automakers, they shake off the long existing stereotypes that domestic vehicles are cheap and low-end while imported vehicles and joint-venture products are brilliant. Chinese domestic brands have raised their status in Chinese consumers. They reported sales rise of 13.58 percent in the first seven months of the year, making up 41.17 percent of total passenger vehicle sales, according to the statistic of China Association of Automobile Manufactures.

However, this achievement is mainly contributed by the surging momentum in SUV models. Noticing uneven development, the China’s domestic strive to production structure adjustment.

Japanese brands vehicles, however, achieved increasing expansion in China this year, accounting for the biggest proportion of 20.23 percent in the overall passenger vehicle sales in July. On the other hand, Germany brands vehicle sales make up 19.37 percent in July’s overall passenger vehicle sales, and American ones grabbing 11.54 percent. Japanese auto brands largely ascribe their outstanding achievements to independent product improvement, powertrain upgrading and official price reduction, bringing about a lot of pressure on rivals.

Some multinational manufactures are accelerating the strategic adjustment in China. First of all, they decide to no long fight in Chinese auto market alone, but actively seek cooperation with Chinese domestic enterprises in products development and introduction. Chinese domestic and foreign automakers have strengthen their cooperation in improved forms.

Many enterprises, including BMW, Mercedes-Benz, Ford and Volkswagen have increased emphasis on technology investment. Meanwhile, many multinational corporations become also increasingly concerned about Chinese consumers’ demand and their actual purchasing capacity through adjusting the prices of the product.