Automotive Dealerships in China: Accelerating Performance

KPMG&TNS --- China has now overtaken Japan to become the world’s second-largest auto market after the United States. Total new vehicle sales (including trucks and buses) grew by 25 percent to 7.2 million in 2006.1 New passenger car sales also reached 4.4 million units (including MPVs and SUVs), an increase of 34 percent compared to 2005.2 Passenger car sales reached 1.2 million in the first quarter of 2007, rising 20 percent from the same period last year.3 Similarly, according to the National Bureau of Statistics of China, the number of privately-owned motor vehicles rose 18.8 percent year-on-year to 22 million in China in 2006. In terms of new passenger cars, individual buyers contributed 80 percent to the 4.4 million units sold. As a general trend, the number of privately-owned vehicles has been soaring since China’s accession to the World Trade Organization (WTO) in 2001. This is illustrated by the fact that private ownership of civilian vehicles has grown from just 43 percent in 2001, to more than 60 percent by the end of 2006.

Main contents:

·The imiportance of the automotive dealer in a rapidly changing market

·Consumers and the automotive dealership in China

·Today's automotive dealership environment in China

·Accelerating performance

·The outlook for the automotive retail sector in China

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