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27-11-2007
Local
Chinese brand cars may take 60 percent of Chinese market and joint venture brands
will be reduced to 40 percent in next five to eight years, the founder and owner
of China's Lifan Motor predicted. "In
the next five to eight years, China's state-owned brands, like those produced
by FAW, SAIC (Shanghai Auto), Dongfeng Auto and JAC (Jianghuai Auto) will take
30 percent of Chinese market while private-owned local brands, like Geely and
Lifan, will take 30 percent and Sino-foreign joint venture brands will take the
rest 40 percent of Chinese auto market," Yin Mingshan, founder and owner
of China's Lifan Motor Group, told the 5th China Automobile Industry Summit Forum
in Shanghai earlier this month. The
Summit Forum, hosted by China-Europe International Business School, brought together
a cohort of automotive business leaders, industry officials, and experts to debate
and exchange views on policy issues, industry trends, business opportunities and
challenges that China's auto industry has to confront in the coming years. "This
will constitute a stable tripartite situation for Chinese automobile market,"
Yin said. "However, in terms of profitability, joint-venture brands will
take 60 percent of Chinese market and local brands will only take the rest 40
percent. I have no reason to ignore how strong they really are." In
the first nine months of the year, local brands sold 940,000 vehicles, which represent
27 percent of Chinese market, overtaking the market shares taken by Japanese brands
and German brands. However,
sales of local brand vehicles saw a remarkable decline in June-August period of
the year, which represents only 23 percent of Chinese market.
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