China Auto News of the Week (January 4- 7, 2011)

China's auto market will slow to 15% in 2011: report

Shanghai January 4 (Gasgoo.com) The growth rate of the Chinese automotive market will slow down to 15 percent in 2011, and down further to 8 percent in 2005, First Financial Daily reported Tuesday, according to Roland Berger, a Germany-based market consultancy.

Roland Berger pointed out in its recent report "Chinese automotive market: How long will the party last?" that private vehicle sales in China will exceed 11 million units this year. China's private vehicle market, which has experienced tremendous development in the past ten years, witnessed strong annual growth of 35 percent from 2011 to 2007, mainly driven by booming sales of private vehicles that rose by 50 percent in 2008 helped by government incentives. And international auto companies also benefited greatly in the process, for instance, the European auto parts suppliers gained 20 percent of its total revenues from China last year.

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Toyota Scion tC goes on sale in China this year

Shanghai January 4 (Gasgoo.com) Toyota Motor Corp. will import its two-door hatchback sedan, the Scion tC, to the Chinese market this year, targeting mainly the younger people, reported auto.163.com.

The Scion tC will be sold under the name, Zelas, in China through the sales channels of Guangzhou Toyota, the Japanese automaker's joint venture with Guangzhou Automobile Group Co Ltd (GAC).

Top 10 Chinese automakers have nearly 90% of market share

Shanghai January 5 (Gasgoo.com) After more than 50 years of development, the Chinese automotive industry's concentration ratio has risen significantly, with the total market share of the top ten auto manufacturers reaching nearly 90%, reported Beijing Business News.

The high concentration ratio has put China's automotive industry far ahead of its steel, home appliance and other manufacturing industries.

China invites Spain to join its Electric Vehicle Industry Alliance

Shanghai January 5 (Gasgoo.com) The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) aims to invite Spain to join its Electric Vehicle Industry Alliance, Miguel Sebastian, Minister of the Spanish Industry, Tourism and Trade, told First Financial Daily during his recent visit to China.

The Electric Vehicle Industry Alliance, which consists of 16 China's centrally-administered state-owned enterprises (SOEs), was founded in Beijing on August 18, 2010. The alliance's short-term goal is to promote the unification of electric car-related technologies, and its medium- and long-term goal is to master the core technology for electric vehicles and build internationally competitive Chinese electric car brands, according to an early report from People's Daily.

New VW Golf R to hit Chinese market in third quarter 2011

Shanghai January 6 (Gasgoo.com) The long-expected Volkswagen Golf R will hit the Chinese market in the third quarter of this year, the Beijing Times said Thursday, citing an insider at Volkswagen Group.

Featuring Volkswagen's 4MOTION all-wheel drive system, the new Golf R will be sold as an import model. The compact car has a 2.0L TSI engine rated at 270 PS (199 kW; 266 hp), and a 6-speed dual-clutch transmission.

Overcapacity accelerates Chinese auto exports

Shanghai January 6 (Gasgoo.com) The Beijing municipal government’s sharply limiting vehicle registration to ease traffic chaos may cause a chain reaction that other Chinese cities will adopt regulatory measures including restriction on vehicle purchase, and pose a huge challenge to China’s automotive industry which is now facing great pressure as overcapacity increases. Rapid expansion of production capacity will force the domestic automakers to speed up the internationalization process, Zhi Luxun, Director of the Department of Mechanic, Electronic and Hi-Tech Industry, and the Ministry of Commerce said at a recent seminar on the development of China's passenger car industry.

The export share of China automobiles and auto parts is still very small at present, only three percent, while that of computers and other products has reached 60 percent, ranking first in the world, so it is a must to accelerate the internationalization process, China Youth Daily reported Thursday, citing Zhi Luxun.

Chery Auto posts record sales in Egypt

Shanghai January 7 (Gasgoo.com) Chery Automobile Co., Ltd. posted record sales of 18,000 vehicles in 2010 in Egypt, where it has launched five self-developed models, Shanghai Securities News said Friday.

The five Chery-branded models including the A1, A3, A5, Easter and Tiggo has gained the Chinese automaker a market share of 7.4 percent in the country.

FAW-VW Chengdu plant to become operational in 2011

Shanghai January 7 (Gasgoo.com) FAW-Volkswagen, a joint venture between China FAW Group Corporation and Volkswagen AG, will put into operation its new plant in Chengdu, capital of Sichuan province, in 2011, Chongqing Times reported Friday, citing an insider.

The Chengdu plant will have an initial capacity of 350,000 vehicles per year. Following the production of the Volkswagen Sagitar and Jetta there, the total capacity of the Volkswagen Golf will be increased by 50% this year, the insider said.