Chinese automobile market growth expected to be around 10% in 2015

Despite a strong performance over the past few years, there are concerns that growth in the Chinese automobile industry will slow down this year. According to analysis reports from various organizations, China’s GDP growth is expected to be around 7 percent this year. Growth in the automobile market is heavily influenced by GDP growth.

China Passenger Car Association Secretary General Cui Dongshu stated his concerns that 2015 will be an even more difficult year for the passenger automobile industry in China than 2014 was. The CPCA anticipates growth in the passenger automobile market to be just around 10 percent this year; that forecast is agreed upon by over 40 domestic automobile enterprises.

Noted industry analyst Jia Xinguang went one step further, stating that even 10 percent growth will be difficult to achieve this year. “The passenger automobile market will not experience growth of 20 percent to 30 percent ever again,” Mr. Jia stated. Mr. Jia cites various factors such as decreasing industry confidence, stating that even maintaining growth levels from last year will be an impressive achievement. The only factor that the Chinese automobile market has in its favor is strong consumer power.

With new car sales growth in suspect, increased attention is being put on the second-hand automobile market. According to statistics from the China Automobile Dealers Association, a total of 6.05 million automobiles were traded on the second-hand market, representing year-on-year growth of 16.3 percent. CADA Deputy Secretary General Shen Rong believes that the used car market will prove to be a major driver of growth in the automobile industry this year.