China aims to export over 1 mln vehicles in 2009

Shanghai, May 9 (Gasgoo.com) In 2007, China exported 6,130,000 vehicles, up 79% y/y, to be world’s top eight auto exporter. State Information Center forecasts that in 2010 China will export 1.2 million vehicles and jump to world top five, yet this figure might be reached before 2010.

In the first quarter of 2008, China’s auto exports rise by 88%, a growth rate indicating that this year the exports can surpass 1million units, said Zhang Ji, deputy director of Department of Mechanic, Electronic and Hi-Tech Industry, Ministry of Commerce of China, in the forum of "Strategy Selection in China Automaking Industry for future 10 years" hosted by China Automotive Review (CAR).

Zhang Ji said that data collected by the World Trade Organization (WTO) shows that the auto business usually makes up 10% of all goods trades, while China auto exports only occupy 1.5% of total exports. Meanwhile, the imbalance between imports and exports in China’s auto industry, such as $26.2billion imports, yet $24.5 billion exports in 2007, also leaves a large margin for export.

Vehicles will play an important part in Chinese exports for a long time from now on. Low costs are still a distinct advantage for China’s auto products, said Liu Shijing, vice minister of China Development Research Center of the State Council.

China’s vehicle products are mainly oriented to the developing countries, creating a low-end market and thus avoiding the competition with multi-national corporations. Therefore, outside factors will not influence China auto exports in a relatively long period. This is proved by the first quarter’s export growth of 88%, which was gained in a background of RMB appreciation, cost increasing, and great slowdown of the American market due to subprime mortgage crisis, analyzed Dong Yang, vice chairman of China Association of Automobile Manufacturers (CAAM).

Zhang Ji also said the government should encourage domestic automakers to improve the quality of their products as well in addition to emphasizing the quantity.