Arab Today, arab today carmakers race to china auto show
Last Updated : GMT 11:26:28
Arab Today, arab today
Arab Today, arab today

Despite market slowdown

Carmakers race to China auto show

Arab Today, arab today

Arab Today, arab today Carmakers race to China auto show

The new Lincoln MKX Crossover vehicle
Shanghai - Arab Today

China is crucial to foreign carmakers as the world's biggest auto market, but slowing economic growth and a corruption crackdown are denting its appeal as they gather for the country's premier industry show.

The Shanghai auto show -- the location alternates with Beijing -- opens on Monday and is a chance for global automobile manufacturers to show off their latest offerings to the massive market.

Vehicle sales in China reached 23.49 million last year, well ahead of the United States, which it overtook in 2009.

But annual sales growth halved to 6.9 percent last year from 13.9 percent in 2013, according to the China Association of Automobile Manufacturers (CAAM). The slowdown continued in the first three months of this year, when sales rose just 3.9 percent.

"The reality is, despite lower growth rates... the numbers in China are still the largest in the world," said London-based principal analyst for IHS Automotive, Namrita Chow.

"It's still a big market for automakers to fight for market share."

The downturn comes as growth in China, the world's number two economy, is faltering. It expanded by an annual rate of 7.0 percent in the first quarter, the lowest level since 2009 at the height of the global financial crisis.

At the same time, Chinese cities are slapping limits on the number of vehicles as heavy pollution and traffic-choked roads spark calls for change.

The southern boomtown of Shenzhen became the latest to impose such measures in December, bringing the total number of cities to at least seven, but carmakers expect more to follow.

A prolonged corruption crackdown and government austerity drive are also hurting the "premium" market -- defined by analysts as vehicles costing from $33,000 to $197,000 -- as well as rarefied luxury brands with even higher prices.

"The whole corruption crackdown is affecting premium products," said Chow of IHS. "We're seeing a greater proportion of local brand vehicles being favoured by government and government-affiliated institutions."

The anti-graft drive has also snared auto industry officials including the former top executive of China's third-biggest car company, FAW Group, which has a joint venture with Germany's Volkswagen.

- Family image favours SUVs  -

But foreign companies cannot afford to ignore China's market, particularly as Europe is still struggling to recover from a six-year slump brought on by the global financial crisis.

Rising incomes and a low percentage of car ownership also point to the potential for further sales growth in the world's most populous country.

Chinese consumers are evolving, embracing auto financing instead of cash deals and fostering a growing market for second-hand vehicles instead of buying the newest models.

The auto show is evolving too. This year, for the first time, it will not include scantily-clad models, which organisers have reportedly banned in favour of more wholesome promotion.

On show instead will be a range of SUVs (sport utility vehicles), whose image in China as a roomy family car rather than a fuel-guzzling giant helped drive a 48.8 percent surge year-on-year in the first quarter, according to industry group CAAM.

Just ahead of the show, US auto giant General Motors launched a new SUV in the China market, the Buick Envision 20T.

Rival Ford Motor Co. will give two luxury SUVs their China market debuts at the show -- the mid-size Lincoln MKX and the full-size Lincoln Navigator -- and launch a flagship sedan for China, the Taurus.

The US carmaker boosted its Chinese footprint last month by opening a $760 million assembly plant in the eastern city of Hangzhou, adding annual production capacity of 250,000 vehicles.

Japan's Nissan Motor Co. will also introduce a mid-size sedan at the show, the Lannia, which it is marketing to appeal to young buyers.

Meanwhile, a government push for "new energy" vehicles is encouraging sales of both fully electric and hybrid cars, which have an electric motor along with a conventional combustion engine.

Jochem Heizmann, Volkswagen Group China's president and CEO, said of electric vehicles: "I'm convinced things will develop faster in China than in Europe."
Source: AFP

arabstoday
arabstoday

GMT 14:39 2017 Tuesday ,19 September

Catherine proud for contract with Morocco

GMT 20:39 2017 Wednesday ,13 September

Al Shamri calls for supporting the Islamic

GMT 03:58 2017 Wednesday ,13 September

Saudi is ready to expand production cuts

GMT 09:43 2017 Sunday ,10 September

Workplace safety key concern

GMT 18:47 2017 Sunday ,03 September

Diplomat underlines importance of visit

GMT 17:39 2017 Saturday ,02 September

Minister underlines support for OPEC cut deal

GMT 19:47 2017 Friday ,01 September

MP blames government for performance

GMT 20:21 2017 Tuesday ,29 August

Dow, Aramco Possible Equity of Sadara
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today carmakers race to china auto show Arab Today, arab today carmakers race to china auto show

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today carmakers race to china auto show Arab Today, arab today carmakers race to china auto show

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today A no-frills business success

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel sees benefits in independent Kurdistan: experts

GMT 07:58 2017 Wednesday ,20 September

Israel sees benefits in independent Kurdistan: experts
Arab Today, arab today Equifax executives step down

GMT 16:16 2017 Saturday ,16 September

Equifax executives step down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Renault-Nissan to launch

GMT 10:44 2017 Saturday ,16 September

Renault-Nissan to launch
Arab Today, arab today Horia Farghaly happy for success of “Case G”

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”
Arab Today, arab today 5,000 'Dieselgate' deaths in Europe per year

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 15:49 2017 Friday ,15 September

'Severe' Typhoon Doksuri pounds Vietnam

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 11:40 2017 Monday ,18 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday