Self-innovation: key to gain momentum in auto sales
- Source: ce.cn
- [09:31 May 01 2009]
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By Chang Yanjun
Under the big circumstances of global economic slowdown, the development of the world automotive industry is also influenced to a certain extent. Facing the depressed global market, the Chinese auto market gives us a sense of hope.
Although it is impacted by the short-term market fluctuation and uncertain factors by a comparatively large margin, the great developing potential of the Chinese auto market and the adjustment and revitalization plan on the auto industry issued by the state will help the Chinese auto industry keep growing steadily for a long run. At the "Progressive 2009-Global Enterprises/ Audi Hangzhou Summit" and the "Innovative development & revitalization of the auto market growth" forum held in recent days, this point became the common viewpoint of the participating experts, scholars and business people.
The output and sales volume of the Chinese auto market further proved it. After the good start in terms of sales volume in January, the output and sales volume of the Chinese autos both exceeded 800,000 sets, finishing the situation that the auto output and sales volume had been hanging at a low level lower than 800,000 sets consecutively since July 2008. According to the statistics by China Association of Automotive Manufacturers (CAAM), in February 2009, driven by multiple state polices on stimulating economy, the auto output and sales volume in China reached 807,900 sets and 827,600 sets respectively, increasing by 22.96 percent and 12.43 percent month on month respectively, and by 23.08 percent and 124.72 percent year on year respectively.
"The issuance of the adjustment and revitalization plan on the auto industry plays a quite active role in the whole tendency of the Chinese auto market in 2009." Assistant Secretary General Shi Jianhua of CAAM stated that especially the independent-branded cars derived much benefit. In February 2009, 131,700 sets of cars with independent brands were sold in total, accounting for 31 percent of the car sales volume, which is unprecedented. According to statistics of CAAM, from January to February 2009, the passenger car market has become warm again somewhat, the sales volume of the passenger cars with an emission of 1.6L or lower, taking up 70 percent of the sales volume of all passenger cars, increased by 18.78 percent month on month (859,300 sets were sold), 13 percent higher than the average growth rate of the passenger car industry, and it played a key role in the passenger car market's warming up again; sales of the cross passenger cars increased by 30.83 percent month on month from January to February; independent-branded cars take up the largest market share for two successive months since January.
Shi Jianhua analyzed, "Judging from the overall tendency in January and February, the output of the Chinese auto industry will breach 10 million sets in 2009. It needs still a policy assurance. If the enforcement regulations of the adjustment and revitalization plan can be carried out effectively, it is possible that the output of the Chinese auto industry will breach 10 million sets and the growth rate will reach or exceed 10 percent."
"Globally, the auto industry is a mature industry, but in China, it is a newly emerging industry. The Chinese auto industry is still growing, and five factors can impact the growth rate of the Chinese auto industry." Mei Songlin, General Manager of J.D. Power Asia Pacific (China) believed that the first is the international environment, the second is the domestic economic environment, the third is the industrial stimulating policies, the fourth is the common driving the market of the suppliers, and the fifth is the pushing of the demanders, which is the key.
Nowadays, China is at the beginning stage of cars entering the families. The vehicle population is around 38 sets out of 1000 people, 120 sets lower than the global average level. And most of car demands are purchase for the first time. The potential of the Chinese auto market is undoubted. The successive issuance of the enforcement regulations of the adjustment and revitalization plan on the auto industry will play an active pushing role in the car consumption in China. Zhang Xiaojun, Executive Deputy General Manager of FAW Volkswagen Audi Sales Division, expressed that although we were confronted with many uncertainties nowadays, but for auto manufacturers, the striving directions should be still the two directions of innovation of product technologies and services, which are the core competitiveness of enterprises and also the prime mover of the long-lasting and steady development of Audi in China and the whole world. As learned, though the growth of the global auto market obviously slowed down in the second half of 2008, Audi still kept a strong momentum of growth. In 2008, Audi refreshed its sales record for the successive thirteenth year. Its global sales volume breached 1 million sets and became one of the international auto manufacturers growing most rapidly and with the largest profitability. In China, the sales volume of FAW-Volkswagen Audi exceeded 118,000 sets in 2008, increasing by 17.08 percent year on year. Zhang Xiaojun said, Audi will continue to increase its investment to the Chinese market in 2008, launch multiple green and effective car types and deepen the Audi Top Service strategy with the goal of "users' pleasure".
"In 2009, the Chinese auto market will be the best market in the world." Shi Jianhua stated that the fundamental situation of the Chinese macro-economy is unchanged, the urbanization progress is unchanged, the proportion of the credit car purchase of the Chinese consumers is below 10 percent, the state lays the revitalization of the auto industry on a significant position, and all of the above factors will promote the continuous healthy development of the Chinese auto industry. Confidence is more valuable than gold. It is believed that with the common efforts of various parties, the prospect of the Chinese auto industry will surely get better and better.