Chinese car market caught by minimal growth period

Chinese car market entered the minimal growth era with probable 3% increase for the whole year after experiencing 10 years rapid growth with double-digit surging degree.

In the first half of the year, Chinese auto industry performed not good enough both in sales and production: respectively 12,095,000 units and 11,850,3 units, increasing separately only 2.6% and 1.4%, stated the China Association of Automotive Manufactures. And it is predicted that the annual sales increase for the year is 3%.

It can be seen from this Changchun Auto Expo, held annually in the Auto City of Changchun, that more than 70% of the exhibited cars have lowered much of their selling price than seven months earlier, some even lower their cost.

Inventory alert index of June was 64.6%, increasing 7.3 percentage points than that of the month earlier. The situation that the inventory alert index exceeded the inventory warning line of 50% indicates that the car market needs are shrinking and the pressure on dealers in inventory and operation is increasing.

Though with a minimal growth rate, China maintains a huge market for automakers both at home and abroad. But the minimal growth place more challenges for Chinese automakers. For example, the well-operated Chinese car manufacture Great Wall, whose SUVs lead the market for a long period with quite high selling prices. But the company has lowered much of its official price amid the official price reduction storm launched by joint-ventures.