Lifting share of self-branded autos to 50%
- Source: Shanghai Daily
- [14:26 January 20 2011]
- Comments
China aims to grow the market share of self-branded passenger cars to 50 percent in the next five years in an effort to strengthen the capability of Chinese auto makers, according to a development draft for the domestic industry.
The government is expected to unveil additional measures to bolster the development and sales of self-branded autos to replace incentives which will expire at the end of this year, Shanghai Securities News cited Xu Changming, a senior official at the State Information Center, as saying.
"The self-developed brands are struggling since government support to them has not been enough," said Yang Zaishun, deputy secretary general of the China Passenger Car Association. Brands by joint ventures dominate in the sport-utility vehicle and multi-purpose vehicle segments of the market.
For the first nine months of this year, Chinese auto makers sold 4.49 million self-branded passenger cars, accounting for 45 percent of the market, according to China Association of Automobile Manufacturers.
Brands by joint ventures take around 40 percent share of the market, 60 percent of total sales and 70 percent of profits, said Cui Dongshu, an analyst at CPCA.
"The government will offer huge support to bolster research into self-branded vehicles in the next five years," Xu was quoted as saying by the newspaper. "Actually, the current incentives have helped lift sales of these domestic brands."
Preferential taxes on purchases of energy efficient cars have driven sales of smaller vehicles.
Apart from self-developed brands such as BYD and Geely, Chinese auto makers have also created their own brands from the ventures with foreign auto makers.
