China auto news this week(2007.06.04-2007.06.09)

China: passenger car sales down 10.5% M/M in May
 
By Joanne   From:www.gasgoo.com June 08 2007

Last month, passenger car sales in China slip by 10.5 percent month on month, according to the industry association. Sales of MPVs (multi-purpose vehicle) witnessed a steep dip of 22.38 percent, leading the down-turn from all segments of passenger cars.

Analysts say the monthly decline is normal, as regard to the seasonal reason, the sales in May is a good result comparing with last year, with new models launched and the price incentives driving the market.

Sales of passenger cars, including MPVs and SUVs(sport-utility vehicle), topped 488,500 units in May, the China Association of Automobile Manufacturers said this week. Despite the drop compared with sales in Apr., the sales of last month still rose 23.4 percent year on year, with all the segments jumped.

The following table shows the sales of every segment of passenger car in May.

Segment      sales         change (M/M)      change (Y/Y)
Sedan         368,000         -10.64%               23.11%
MPV              15,900          -22.38%               4.23%
SUV              28,000           -1.99%                66.95%
Crossover   76,600           -9.87%                 17.94%

The statistics also shows China's auto industry's steady growth during the past five months. The sales of passenger cars yeay to date reached 2.5727 million units, an increase of 21.09 percent year on year.




China self brands sales account for 30% before June

By Jorvan   From:www.gasgoo.com June 08 2007

China Association of Automobile Manufacturer Industry released the latest statistical data yesterday, showing that, passenger car sales from January to May were 2,572,700 units. China self brands sales were 559,300 units, accounting 29.40% of total auto sales.

From January to May, self brand sales were 559,300 units, QQ, Xiali, Family and F3 brand sales still ranked among the top 10. From the beginning of April, self brands market share boosted to nearly 30%, exceeding 3.21% over the second-ranking Japanese brands.

Chery Automobile showed rapid growth in May, and 33,805 units' sales again exceeded that of Shanghai Volkswagen, ranking the second.

Meanwhile, self brand new model are no less than those of joint ventures. The new products access list released by SDRC showed that Brilliance, JAC, Changan, Geely and BYD have a new model that will be launched.




11 FTAs become main China auto export market 
 
By Jorvan   From:www.gasgoo.com June 06 2007
 
The Chinese government is currently discussing with 11 free trade zones, covering 28 countries and regions, accounting for one quarter of China's total trade. By April 2007, motor vehicles and parts import tariffs in some parts of the ASEAN Free Trade Area decreased significantly. For example, the tariff in Thailand and Malaysia was 10% to 80% in 2003 and dropped to 5% to 12% in 2007.

International Division of the Ministry of Commerce officials told reporters in the 2007 Forum on China's exports of commercial vehicles, that apart from China-ASEAN, China-Pakistan, China-Chile FTA, China and the GCC free trade zone is expected to have negotiation within1 or 2 years. Gulf Cooperation Council (GCC) which covers the richest six countries in Middle East, basically speaking these countries do not have their own automobile industry, car imports is very open and welcomed. Middle East as the main vehicles for export markets in the world is good news for Chinese auto makers.




China's Chery eyes to lead international small car market
 
By Joanne   From:www.gasgoo.com June 04 2007

With securing the first place in the domestic small car market, China's Chery Automobile Company eyes the overseas market. Cooperation talks with Maruti and Tata have been underway, which may enable the Chery QQ and A1 models to wedge in the competitive and growing market.

Minicars already account for 75% of the whole market, totaling to 1.125-million and it is yet growing fast, attracting global carmakers to launch models or to invest here. "Only to go overseas could we be called the real leader of the small car segments," said Yin Tongyao, general manager of Chery.

Chery internationalized since 2003, a highly competitive year for Chinese automakers ever since. During this year, Chery successfully exported its cars into Syria, Algeria, Libya, Egypt and other foreign markets and later set up joint ventures in Venezuela, Pakistan, Iran and so on, by means of completely knock down (CKD).

Also, Chery's OEM deal with Chrysler is still under negotiation, under which agreement Chery cars will enter the North American and west European market in upcoming months.

Chery was founded a decade ago but is already regarded as a leader for the home-grown automakers, with an obvious dominance in the small car segment.




Guangzhou Honda to ship 42,000 units abroad this year
 
By Ally   From:www.gasgoo.com June 04 2007

Honda Motor Co, which started making Jazz compact cars in China two years ago targeting the European market, is expected to ship 42,000 units overseas this year, up from 24,600 in 2006.

Honda, which competes with carmakers such as Toyota Motor Corp. in China and elsewhere, operates two local ventures in the country with Dongfeng Motor and Guangzhou Automobile Group making Acura sedans and CR-V sports utility vehicles. Accumulated Honda sales in China have reached 50,000 units, according to a statement from Honda.

The automaker started to produce Jazz in China on April 2005 and export the model to Europe. The model has won more and more recognition from then on and thus Honda has added additional production capabilities staring this April.