As the Formula One circus rolls into China this weekend, it is easy to forget that last-minute preparations are also being made 650 miles away as its International Exhibition Centre once again opens its doors for the Beijing motor show.
Increasingly perceived as one of the most important showcase events on the auto industry calendar, the Beijing motor show promises to give the best possible insight yet of the future thinking concerning Chinese car companies.
Certainly the balance of power in the car market is shifting – and quickly – to Asia, China especially. Despite having to overcome the worst global recession since the early eighties, it is one of the fastest growing economies in the world.
Geely Auto, who only a fortnight ago acquired Volvo from Ford for $1.8bn, and Shanghai Automotive, who signed a joint venture to the value of $650m with America’s General Motors (GM), will be representing the Peoples’ Republic in the Chinese capital.
They will share centre stage at the expo with Ferrari’s all-new 599 GTO, Mercedes’ CLS estate and Audi’s A8L. Not to be outdone, the Detroit-Shanghai partnership will unveil their cutting-edge Leaf concept, which is a commitment to renewable energy technology.
These world premiers are usually reserved for the likes of New York or Detroit in America, Frankfurt in Germany or Geneva in Switzerland. Already, 17 cars will be shown in the metal for the very first time, comprising concepts and road-going versions.
China returned to double digit growth at the beginning of this year, and was the first to achieve stabilization thanks to total gross domestic output totalling £3tn. Its car industry also posted favourable returns to overtake America to become the world’s biggest with passenger car sales almost doubling to 1.32m in 2009.
This was a turnaround in fortunes. In 2008 there was still growth to the tune of 6-7 per cent, but far lower than expected. In fact, it was the lowest recorded figure for almost a decade according to the China Association of Automobile Manufacturers (CAAM). However, the global downturn was an instigating factor, which led to the scaling down of many companies’ production lines, albeit momentarily.
Keen to maintain this sales momentum, the Chinese government has introduced a number of stimulus measures, including sales tax rebates for purchase of small cars and subsidies for buyers in rural areas to ensure much of the state-owned industry prospers, making up as much as 70 per cent of the market share.
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