By on August 12, 2013

A view shows cars jammed on the Shanghai-Beijing Expressway in Shanghai

Sales of passenger vehicles in China were up 11% in July as new assembly plants have opened and as dealers cut prices to clear out inventory before 2014 model year cars start arriving. The state sponsored China Association of Automobile Manufacturers says that wholesale deliveries of automobiles, SUVs and multipurpose vehicles were up to 1.24 million units in July, beating analysts’ expectations. Among the companies that have opened up assembly plants this year in China are Ford, PSA Peugeot Citroen and Chinese owned Volvo.

The new capacity is planned to fill demand for an anticipated 20 million units this year and as many as 30 million by 2020 as the Chinese market continues to grow. So far in 2013, 12.3 million units have been delivered. While market growth is expected to continue for cars and light trucks in China, there are potential problems. According to some reports, Tianjin and Wuhan may join four other cities, including Beijing and Shanghai that are already trying to reduce ownership of private vehicles to alleviate congestion and reduce pollution. Other reports say as many as eight additional cities are considering implementing those regulations.

 

 

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19 Comments on “China Passenger Vehicle Sales Up 11% in July As New Plants Come Online But Continued Market Growth Threatened As More Cities Regulate Vehicle Registrations...”


  • avatar
    Halftruth

    Pollution/congestion has been a problem in some metro areas of China for decades. Selling more and more cars certainly won’t help. I can easily see why some metro areas would want to curb car ownership (pun intended).

  • avatar

    They should thank our politicians for giving them our jobs!

    • 0 avatar
      Lie2me

      Why would you say that? American automakers are selling cars made in China for the Chinese. It’s almost impossible to sell a car in China unless you have manufacturing facilities there. China is helping American automakers buy buying products that they wouldn’t be able to if it weren’t for American factories in China. These factories do NOT export any of this Chinese product back to America. How is it costing American jobs?

      • 0 avatar
        Superdessucke

        Should we make foreign automakers build cars here to sell them? You free trade idiots would be screaming bloody murder. So why should the Chinese be able to do that? It’s costing American jobs.

        • 0 avatar
          Lie2me

          I don’t understand your logic. If you want to sell cars in China you build a factory there, build and sell them cars at a profit. If you don’t build a factory there no sale no profit. Where is it costing American jobs? If anything, by building and selling cars in China it helps the automaker stay solvent thus insuring there are jobs to go to back home

  • avatar
    Big Al from Oz

    It seems that the Chinese will become a force to reckon with in the future of the global motor vehicle industry.

    I also foresee Australia as being probably one of the first Western nations to ’embrace’ their vehicles, we have already started going down that road.

    We have little choice, we have a very liberal economic base to work from. But, also and importantly is our trading position with the Chinese. Essentially the Chinese owe us money, so if we want to keep on exporting to the Chinese our raw materials I think we will import their vehicles.

    Once the Chinese (within a decade) can produce globally competitive vehicles many countries will probably adopt harsher protectionist measures like the US.

    It also appears the Chinese have played their hand well. Look at the manufacturing companies that are producing vehicles in China.

    The Western auto manufacturers who have set up shop will be ‘influenced’ to export to their other global markets.

    Cars will be like cordless drills, bought cheaply and recycled.

    Once the Chinese vehicle exports start to take on global markets, we will wonder why we are bickering amongst ourselves and why we didn’t work together more closely as free nations.

    The dynamics of motor vehicle industry is about to change. But Australia will profit from it more than most.

    • 0 avatar
      Lie2me

      How come there are no Australian owned car companies?

      • 0 avatar
        Lie2me

        I’m trying to understand why someone would be concerned with “US protectionist measures” when they don’t have anything to export that the US needs to be protected from

        • 0 avatar
          Lie2me

          Now I’m really confused, you mean the US government who bailed out GM has protectionist policies that would prevent GM from importing, or exporting it’s own product to itself… (scratches head)

          Ford must be behind this… Oh, wait

        • 0 avatar
          Lie2me

          Oh, next time you see Frank, tell him I said hey and not to worry there hasn’t been a single bomb go off in Atlanta since that night… lol, he was so scared

        • 0 avatar
          Big Al from Oz

          @Lie2me
          Have I only been critical of the US?

          I was even harsher on Australia’s position with our manufacturers regarding ‘handouts’ to maintain a small number of jobs.

          If a Frenchman or Englishman were to make comments I would comment on them.

          Also, if you have read my comments I do cover all aspects of the global auto businness.

          But it seems there are a certain group of people who don’t like my views as it will affect them directly. I’m talking some of the UAW sponsored bloggers.

          They want to debate the virtues of the anti competitive behaviour of the motor vehicle industry in the US, I will accommodate them.

        • 0 avatar
          doctor olds

          What’s really weird is that their largest (domestic) car company is General Motors! How do you wrap your mind around that??

        • 0 avatar
          Lie2me

          Exactly, why does the government “protect” American car makers, in who they have a huge investment, from importing their own products?

        • 0 avatar
          Lie2me

          That I understand, Toyota has huge investments in the US and they build a car in the US that a lot of people seem to want

        • 0 avatar
          doctor olds

          Wouldn’t you think that citing the Toyota Camry as the best selling car might be a hint of data to suggest the US market my actually be open to foreign competitors?

          Camry sales volume is just a fact. Thinking the market is closed despite that fact is weird.

    • 0 avatar
      Superdessucke

      No. How are you going to stop Chinese workers from demanding more wages and their citizens from implementing pollution and safety standards? You can’t. Military intervention and human rights abuses will only go so far. Eventually that will push prices beyond the cordless drill stage.

      • 0 avatar
        Big Al from Oz

        @Superdessucke
        Yes, I agree, but with China, due to its size this will draw out for a while.

        We already have Chinese vehicles and that’s what they are buy one and after 5 years throw them away.

  • avatar
    Kenmore

    All the cars in that photo…. what is that slovenly mess?

    Not a manufacturer’s yard I hope,

  • avatar
    doctor olds

    The Chinese market has a long way to grow. Even with suppression of vehicle populations in the many huge cities, those areas will continue to demand more, and increasingly more upscale vehicles. It is a great place to sell cars!

    China does have great poverty. A billion or not in the market for something as costly as a motor vehicle. On the other hand, there are 300 million who are doing pretty well!

    The growth opportunities are in the smaller cities. Those with only a million or suppose. That’s why GM launched its newest brand, Baojun. It will be less expensive and tailored for lower income areas.

    With the lead in electrification, the best selling brand and a growth strategy in more rural china, GM will do well.


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