Strategic Review of Chinese Passenger Car in China in 2008

Frost & Sullivan
June 12, 2009
182 Pages - SKU: MC2406469
License type:
Table of Contents Related Reports
Countries covered: China

This Frost & Sullivan research service titled Strategic Review of Chinese Passenger Car in China in 2008 provides market size, competitive analysis, and technology trends. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: sedan, sports utility vehicle (SUV), multi-purpose vehicle (MPV), and mini bus.

Market Overview

Robust Economic Development in China Revs up its Passenger Car Market

Riding on the vigorous and sustained growth of the Chinese economy, the automotive market in the country is all set to graduate to the pole position from its current second spot in the world rankings in the early part of the next decade. China's annual gross domestic product (GDP) growth rate remained over 10 percent from 2003 to 2007 and is likely to grow steadily at around 7 percent over the next two years, according to the World Bank. However, this resilience to the global economic slowdown and a string of natural disasters in 2008 have not proved sufficient to insulate the citizens from the plunge in China’s stock market, falling estate prices, and company layoffs. Customers are more reluctant to spend, shrinking the demand, and thereby, profits for car manufacturers. To cope with the lack of rapid growth, Chinese automakers, especially independent brands, should implement cost-saving strategies and rethink their capital investment plan.

Manufacturers can try to stay ahead of the curve by introducing models and advanced powertrain technologies. The new technologies offer benefits of emission reduction, fuel saving, and increased performance, making it attractive to potential customers. Technology development is accelerated by increasing supplier R&D localization and transformation of localization strategies. Manufacturers will also be pleased that the continuing urbanization of China has caused a rise in the per capita income, and thereby, the spending power of the people living in urban areas. “In some cities like Shanghai and Beijing, the per capita GDP reached more than $8,000, resulting in a substantial increase in the disposable income of the people,” says the analyst of this research. “Hence, consumers are expected to spend more, particularly on capital goods such as vehicles.” In fact, the total sales of the Chinese passenger car is anticipated to cross 100 million in unit shipment in 2015.

The passenger car market will also be greatly aided by the shifting of the automotive industry to the developing nations in Asia. The competition is expected to become increasingly intense as American series automakers are being challenged by German and Japanese automakers, and eventually, they are expected to lose market share to their Chinese counterparts. Participants can look to further expand in the market by exploring fresh sources of revenue. “For instance, various new niche markets are emerging due to the diversity in customer demands,” notes the analyst. “The market will get another boost through the Chinese Government's auto industry revitalization policy, which is likely to fuel consolidation at the auto group level through mergers and acquisitions.”


More China Light, Medium Trucks & SUVs Reports

Light trucks in China by MarketLine
Introduction Light Trucks in China industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2006-10, and forecast to ...

Trucks - BRIC (Brazil, Russia, India, China) Industry Guide by MarketLine
Trucks - BRIC (Brazil, Russia, India, China) Industry Guide is an essential resource for top-level data and analysis covering the BRIC (Brazil, Russia, India, China) ...

Medium & Heavy Trucks - BRIC (Brazil, Russia, India, China) Industry Guide by MarketLine
Medium & Heavy Trucks - BRIC (Brazil, Russia, India, China) Industry Guide is an essential resource for top-level data and analysis covering the BRIC (Brazil, ...

Light trucks - BRIC (Brazil, Russia, India, China) Industry Guide by MarketLine
Light trucks - BRIC (Brazil, Russia, India, China) Industry Guide is an essential resource for top-level data and analysis covering the BRIC (Brazil, Russia, India, ...

Automobile Body and Trailer Manufacturing in China by IBISWorld
Automobile Body and Trailer Manufacturing in China Enterprises in the Automobile Body and Trailer Manufacturing industry in China are engaged in manufacturing automobile bodies, trailers and ...

See all reports like this >>

More China Reports

D&B Country RiskLine Report: China by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...

Country Report China February 2011 by Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...

Country Report China January 2011 by Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...

D&B Country Report: China by Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...

Juice – China – a snapshot (2010) by Mintel - Snapshots
Juice in China by Mintel Global Market Navigator provides you with annual year-end market size data, most recently updated in 2010. The report covers packaged ...

See all reports like this >>

 

Share this report


Other tasks

 
 

Research Assistance

Ask a question
 

Related Markets


Light, Medium Trucks & SUVs Reports

 
 

Free Alert Me service

Receive bi-weekly email alerts on new market research

Sign Up Today!