The negative growth of auto market and increasing self-owned brand SUV in China worries joint venture auto enterprises

Gasgoo.com (Shanghai May 22nd) – The sales volume of China auto industry in April was quite unsatisfied although there were Shanghai International Automobile Industry Exhibition and official promotions then. In accordance with the data from China Automotive Industry Association, in April, the production volume of China auto industry was 2,079,700, increasing by 0.6% YoY and the sales volume was 1,994,500, declining by 0.5% YoY. The negative growth has become a fact.

Chinese self-owned auto brand was the rare highlight in the stagnant market. In April, the sales volume of self-owned brand passenger cars in China was 686,400, increasing by 14.3% YoY, among which, the sales volume of self-owned brand SUV was 238,000, increasing by 91.2% YoY, even more than the data of saloon car.

The growth of self-owned brand worries joint venture auto enterprises a lot. The sales volumes of German, Japanese, American, Korean and French passenger cars in April were 310,900, 274,800, 180,900, 146,200 and 66,100, occupying 18.63%, 16.47%,10.84%, 8.76% and 3.96% of total sales volume of passenger cars in China. All the data declined in April on MoM except for Japanese brands. The situation was the same for Shanghai Volkswagen, FAW Volkswagen, Shanghai GM, Beijing Hyundai and Dongfeng Nissan of top 10 auto enterprises. Auto enterprises had released many new models and official promotions to save the sales volume but the result was still unsatisfied. Industry analysts figure only the government policy could promote the sales volume of auto industry in very short time so the negative growth might be normal in the future.

In accordance with statistical data, the capacity of China auto industry will be between 40 million and 45 million in the end of this year but only 25 million could be consumed. Joint venture auto enterprises own most of the capacity left. After the rapid growth for continuous 13 years, China auto market begins to face negative growth so the competition will be fiercer and auto enterprises should research and study more carefully in the future.