China’s own automakers outrun foreign automakers market share in July

Chinese vehicle sales volume of July is 1,304, 000 units, falling 2.5 percent compared with the same period of last year. The accumulative auto sales in the first seven months is 11, 184,600 units, a lift of 6.9 percent on a year-on-year basis. In passenger vehicle section, the accumulative sales quantity is 10,560,000 units, increasing 9.3 percent compared with the same period of the last year.

With the overall downturn of Chinese auto industry, an array of foreign automakers including VW, GM, Ford, Hyundai, and other many automakers from Germany, America and South Korea, experienced ups and downs in the first half of the year in China due to the unsteady performance of their owners in the oversea markets. This indicates that these joint-ventures in China depend much on their foreign owners in China.

In particular, Hyundai reported year-on-year more than 30 percent steep dive sales of July in China, which is contributed by the challenging competition of Chinese own automakers, according to the report of Yonhap News Agency.

The report of Yonhap gave readers a great shock because they hold in mind that Chinese own automakers have always lacked competitiveness. In fact, Chinese own automakers sold in the first half of the year a large quantity of passenger vehicle reaching 4,184,600 units, an increase of 14.57 percent compared with the same period of a year earlier. The quantity of Chinese own automakers consisted 41.45 percent of the overall passenger vehicle sales in the same period, the proportion increasing 3.54 percentage points compared with the same period of last year. However, proportions of automakers from Germany, Japan, United Stated, South Korea and France dropped respectively to 19.69 percent, 14.94 percent, 12.06 percent, 8.06 percent, and 3.62 percent.

The market share growth for Chinese domestic automakers is contributed by their layout in the hot SUV market segment. The accumulative sales quantity of SUV in the first half of the year in China is 2,705,000 units, an increase of 48 percent compared with the same period of a year earlier. In particular, the growth rate of China’s own brands SUV reached up to 95.5 percent, while that of the foreign joint-ventures was 15.5 percent. In addition, the market share of foreign automakers in China decreased 13 percentage points to 46.4 percent.