LMC ZENG Zhiling: Automobile Industry Expected 12%-13% Growth This Year

“2014 Automobile Industry growth may be between 12%-13%. But it is still able to be influenced by purchaselimitation policy by government.” ZENG Zhiling, general manager of LMC automobile consultant Co., Ltd told reporter of Gasgoo.com during interview. ZENG said that, according to LMC statistics, automobile industry growth of 2013 will remain around 16%. But the figure for 2014 shall return back to 12%- 13%. But big cities consumers may be influence by purchase limitation policy, which may trigger panic purchase and rise car sales volume.

ZENG Zhiling points out, from macro economy perspective, Chinese GDP remains stable growth recent years. Besides, automobile market growth slowed down because government subsidy cut down. However, with 2 years inventory digesting, automobile industry sales return and climb up again. What’s more interesting, at present, 82% car buyer is first time car consumer. It means that automobile consume is still rigid demand. Therefore, except purchase limitation influence, automobile industry will remain its stable growth and keep forwards with a good outside environment.

With government automobile policy gets stricter year by year, LMV exceptionconsider the situation inside its expectation already. ZENG Zhiling told reporter that government requirement for automobile industry focus on energy saving, and most of automobile companies have not against policy. Therefore, government policy would not influence automobile sales too much at present.

In 2013, merging and reorganization happens among many companies this year, which includes “Dongfeng reorganizesFutian”, “Beijing Automobile reorganizes Zhenjiang Automobile” and so on. Compared with developed countries which have mature automobile industry, China has too many automobile manufactures. Insider points out those Chinese automobile companies will have its merging and reorganization year recently. ZENG Zhiling said that at present, Chinese automobile companies do not need too much merging and reorganization. Some automobile companies, which experienced merging and reorganization do not performance good enough at moment, such as GAC merges Changfeng Liebao and Changan reorganizes Changhe. Brands merging and reorganization face much more risk even if it happens among international companies. The merging and reorganizationhappened among big companies such as Daimler –Chrysler and GM-Fiat failed. At this moment, mutual holding is the most reasonable way.

Joint venture price declines, displacement standard upgrades, export frustration and purchase limitation cities increase. 2013 is a challenge year for automobile industry. ZENG Zhiling said that Chinese owned brand reputation is still rise tendency. From J.D.Power research, Chinese owned brand customer satisfaction and after service satisfaction prove the situation.