The slowdown of Chinese car sales, applauded in some circles that applaud any negative news out of China, could finally unleash the flood of cheap Chinese cars exported to foreign markets, something that had been long predicted, but which has been a bust for even longer. “Battling a slowdown and intense competition in their home market, Chinese carmakers are increasingly looking to exports for growth,” China Daily writes.
Vehicle exports by Chinese automakers in the first three quarters climbed 28 percent to 785,300 units, statistics by the China Association of Automobile Manufacturers say. In August, China exported (112,300)slightly more cars than it imported (110,100).
So far, Chinese carmakers focused at the ferocious appetite of their home market. With the home market going on a diet, carnakers look abroad for buyers:
- Lifan said it will invest heavily in overseas operations in the next three years in a bid to more than double its exports to 120,000 vehicles in 2015, some 40 percent of its total sales.
- Dongfeng wants to sell 300,000 units a year overseas, up from about 63,800 in 2011.
- Geely’s exports in the first nine months reached 68,600 units, about 20 percent of its total sales in the period.
IHS Automotive expects passenger vehicle exports by Chinese carmakers to double in the next three years.
TTAC readers learned nearly two months ago that this would eventually happen. However, it remains to be seen whether Chinese automakers make big inroads abroad. Many big automakers are hurting and will defend their markets ferociously. What’s more, big automakers decided to beat the Chinese at their own game: Low cost cars.