Korean Media: “World Car Industry Depends on China”
Published October 2, 2009
A recent article in South Koreas Joong Ang Daily remarked that the worlds car industry now depends upon the Chinese market until other markets improve.
By September 30th 2009, China had sold over six million cars, an increase of 17.7% over the first nine months of 2008, America has only sold 4.8 million cars in the first 9 months of the year, which pushed China to the number one spot of worlds biggest car consumers. The reasoning for Chinas jump to worlds no 1 spot is quite simple, its due to the introduction of policies that geared the people up to buy cars. The government halved tax on cars with engines smaller than 1.6l and also promoted light vehicle sales to farmers and villagers.
Next year there might not be any of these policies even though the economy is improving, the car industry might need to keep them for the time being.
Ã¥Â½ÂÃ¥Å¡Ã¨Âµ?Ã¨Â®Â¯Ã¥Â±Ã¦said Next Year China will be the worlds largest car market, the whole car industry is aiming to get into the Chinese market
Ford reently announced their plans to build a third plant in Chinas south-west; FAW and GM are planning to build light trucks in China, and Fiat have launched a JV with Guangzhou; Nissan and Dongfeng are planning to increase their production work force with 1200 new men and Toyota are planning to launch the Camry hybrid in China. Global car makers launched 89 new car models in China in the first half of the year, the second half of the year is expected to see 50 new models being launched.
Beijing-Hyundai is expected to increase its production from 500,000 vehicles to 600,000 vehicles to keep up with demand.
British car company Landrover have already stated that they are basically relying on the Chinese market to carry them through some lean times, but just how potent is the Chinese market on a whole? There is obviously room for growth, but eventually something will break the camels back and car sales will stutter once again like they did in January this year, will the American and Japanese car markets pick up again in the near future, and push China back down the list?
Instead of debating here in the article, were going to allow this debate to be carried out by CCT readers via the comment box.