China has been the engine under record earnings at German automakers such as Volkswagen, Daimler and BMW. China helped GM offset its heavy losses at Opel, and provided more than 2 million cars that earned GM the (some say undeserved) title of world’s largest automaker. All of them have invested heavily into added capacity in China. All of them have reason to be worried. (Read More…)
Tag: car sales
Western media widely reported (and still reports) that the Chinese government will only allow Chinese cars to be bought by its functionaries.
Not so. The rule exists in draft form only,and has been published to elicit public feedback.However, in a disturbing development, China Daily reports that “nearly 90 percent of respondents in a survey are in favor of China’s domestic independent-brand automobiles for governmental use.” It’s not that 90 percent said so. It’s the ominous fact that it is being published in a government-owned paper.
If the survey is correct, then Chinese citizens want to look down on the car choices of their rulers. The Chinese themselves are widely in favor of foreign cars. 70 percent of all cars bought in China are foreign branded. The appetite for foreign branded cars remains high,as the following tables show. (Read More…)
Yesterday brought you news of the tepid Japanese car market that has been down 26 percent for the year. Commenter Alex Nigro DEMANDED the answer to “Are Japanese people still not interested in driving?”
The Nikkei [sub] immediately went on the case and reports today that there is one segment in the industry that is booming: Bicycles. Writes the Nikkei:
“The March 11 earthquake triggered an increase in the number of people who commute to work by bike, and new business are cropping up to accommodate this trend, including high-end park-and-shower services in central Tokyo.” (Read More…)
According to lore, Germany’s autobahn is teeming with S-Class, Porsches, and the occasional Veyron mixed in. Not so, says Germany’s Über-DMV, the Kraftfahrtbundesamt, in an article about the 50 top selling cars in Germany of 2010. “Upper class and sports cars are not in the Top 50,” say Germany’s keepers of car data. The truth is in the following table. (Read More…)
Many pronounced the end of China’s torrid growth of car sales after they slowed to just 4.57 percent in February. Xing Huang, chairman of state-owned auto parts maker China Auto Parts & Accessories Corp (CAPAC), thinks otherwise. He expects the Chinese auto market to grow at the same speed in 2011 as in the year before, says Reuters. That would be 32 percent. (Read More…)
How things change. A few months ago, German dealers complained that the sky is falling, and that it’s the end of the car business as we know it – just because German cars sales had crashed from their Abwrackprämien-induced unnatural highs. Now, German car dealers have new reason to be worried: More buyers than cars! Rationing! Come back next year! (Read More…)
We are still waiting for the September sales numbers for China (at least we were spared the usual CATRC drama of faux numbers – maybe because there was a one week holiday?) But here comes something interesting (or shocking, depending on who’s side you’re on.) Auto sales in China could hit 17 million units this year, up from 13.6 million in 2009, Chinese state media said today, citing the China Association for Auto Manufacturers (CAAM.) And that was the harmless part. (Read More…)
Remember carmageddon? It is not forgotten in Germany. As a matter of fact, Germany’s biggest carmageddon happened last month, in May. While champagne corks popped in the U.S., propelled by a 19 percent plus in May, the Germans are crying into their beers. According to numbers released by the German Kraftfahrt-Bundesamt (KBA,) the new car market collapsed by heart attack inducing 35.1 percent in May. That’s not the worst part of the story. (Read More…)
Whenever yours truly sings the long-term praise of the booming Chinese auto market, it elicits loud protests: “Can’t be! Bubble market! The environment! (Our gasoline.)”
The people who make and sell cars for a living have a different opinion. The AlixPartners consultancy asked 50 senior executives from both foreign and domestic players in China’s automobile industry how much they think the Chinese car market will grow between now and 2015. Guess what their answer is? (Read More…)
I spent an interesting Saturday with two old friends of mine. They had never met before. One, American, CFO of an insurance company, had been in the finance and banking business all his professional life. The other, born Chinese, naturalized American. Was one of the top mortgage writers in the Silicon Valley before the dotcom crash. Came back to China and heads a Chinese/American bank. The two got along splendidly.
Of course, we talked about money and cars. Recently, there was a discussion on TTAC on how the bursting of the Chinese real estate bubble would destroy the car market just like it had in the USA. I eagerly set out to pick their brains.
Quite oddly, the first one to throw water on the bubble theory was my friend, the staid CFO of the staid insurance company. (Read More…)