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…)
Tag: car sales
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…)
China’s passenger car sales in January skyrocketed an unbelievable 115.5 percent from a year earlier, China’s official scorekeeper, the China Association of Automobile Manufacturers said today. A total of 1.32m passenger cars were sold last month in China, compared with 610,600 units a year earlier. In December 2009, 1.1m units changed hands, Reuters reports. The January number is even more surprising as the China Passenger Car Association had originally figured that China’s passenger car sales rose 84 per cent in January. We compared the Reuters story with Xinhua, the official word on China, and Xinhua also says: “Passenger car sales were up 113.21 percent to 1.32 million units last month.”
Overall vehicle sales, including buses and trucks as well as cars, were even more amazing: A total of 1.66m units in January, up 126.3 percent from 735,500 units a year earlier. Keeping passenger vehicles and commercial vehicles apart is a frustrating exercise in China. Minivans for instance, and of course pickups, count as commercial vehicles. (Read More…)
Yesterday, we reported that China wants to be a market of 20m cars in 2012. We didn’t predict that, just reporting the news, ma’am.
A hue and cry ensued: “Can’t be!”
Commentator ohsnapback, who’s forte is lawyering, a much more complex field than economics, prognosticated an immediate burst of the Chinese bubble, with a mega tonnage of more than 100 times of our housing bubble. The argument was promptly defused. After all, China doesn’t borrow money. They lend it. Mostly to the U.S.
Then, commentator ra_pro rolled out the really big ordnance: “As I said many times previously: Demography is Chinese destiny as it is Japan’s.” If people would only stop prattling on about demographics, and would check their data first. (Read More…)
Come 2010, U.S. customers will storm the few remaining dealerships. GM will go public with a healthy pop that makes the taxpayer rich. The good old times will be back. The Japanese don’t think so.