China auto exports down 58% in first 7 months

• Source: Gasgoo.com
• [14:27 September 07 2009]
• Comments

Data shows that China exported 190,000 vehicles in the first seven months of this year, down 58 percent from 2008, CCTV.com reported today.

Officials say although China's car exports only accounts for 3 percent of the world total, and 2 percent of China's total exports, the potential for growth is huge, thus the government should make long-term plan to stabilize car exports.

The Ministry of Commerce is working to deal with the problem, and may implement guidelines for the country's auto exporters. The guidelines will urge exporters to set up sales networks, perfect after sales services, and adjust business structures.

Zhang Ji, Director of Department of Mechanic, Electronic and Hi-tech Industry, said "We will try to increase China's share in the world's total auto export from the current 3 percent to 10 percent by 2020."

Aside from the decrease in overseas demand, Zhang says the decrease is due to nonstandard competition. So he urged the government to further regulate the market. In auto parts, the Ministry will enhance a tax rebate policy, to promote auto parts export.

"Our exports declined a lot, by more than 30 percent," said Wang Ziliang, Vice Chairman of Geely Holding Group. China's automakers expect the government to pay close attention to the decrease in auto exports.