China's auto growth rate may slip to 10%
- Source: Global Times
- [17:45 November 30 2010]
- Comments
A market analyst with American consulting service company, J.D. Power said Monday that the growth rate of the Chinese auto market will slow down in the coming year, as a result of the government's plan of canceling the preferential policies and the aggressive growth rate in 2009 and 2010, the China Business News reported.
A report released by J.D.Power predicted that the total volume of the Chinese car market will reach 18 million units, increasing 30 percent but the growth rate in 2011 will slip to 10 percent.
Ding Lei, chairman of SAIC-GM said the increasing rate of the Chinese auto market will keep the momentum of steady growth in the next five to 10 years and it will not change greatly in 2011: 20 percent or so.
Under this circumstance, China surpassed the US, becoming the world's biggest car-consuming country with a growth rate of 47 percent in 2009.
However, the government has realized the problems caused by the over-rapid growth, including traffic congestion, environmental pollution and automakers' over expansion, Zhu Ming, analyst with J.D. Power said.
Gan Weiwen, director of GM China said that the growth rate in 2011 will be 10 to 15 percent, which may have negative impacts on domestic automakers, especially those mini and micro car manufacturers.
According to J. D. Power's statistics, the capacity utilization rate of domestic automakers reaches 88 percent in 2010 and will drop to 10 percent in 2011.
"Even if the capacity utilization rate is under 75 percent, Chinese self-owned brands could still keep earning, so domestic automakers are not likely to face huge losses the next year," Zhu said.
